chat Chat

How to plan for a stress-free retirement

Retirement, touted as the golden years of life, is the time to relax and enjoy the fruits of years of hard work. This is the time to do the things you always wanted to do, but couldn’t due to paucity of time, while juggling professional and personal commitments. However, planning a stress-free retirement needs a meticulous and concentrated approach. Read on to know how you should go about planning this essential life goal.

Know your post-retirement expenses

Prior to planning, it’s essential to know your post-retirement expenses. There are many online calculators that help you gauge them. It is essential to note that while calculating these expenses, you factor in inflation that erodes the value of money with time and pushes up the cost of living. Inflation plays a big role in retirement, especially when you don’t have an active income.

Save to build a retirement corpus

Retirement is the time when you don’t have a regular income. Hence, it’s essential to build a corpus that would help you take care of your post-retirement needs. The key is to start saving early, ideally from the day when you start earning. Through regular savings, you can build a sizeable retirement corpus that would help you take care of your family’s day-to-day needs.

By investing in a mix of fixed-return instruments such as fixed deposits and market-linked products such as mutual funds, you can save and build a corpus large enough to maintain your lifestyle. Invest in instruments that help you beat the effects of inflation.

Have adequate health insurance

For retirees, healthcare costs constitute a significant portion of their monthly expenses. Hence, it’s essential to have an adequate health insurance in place that would help prevent a depletion of your retirement corpus, in case of a medical emergency. Health insurance saves out-of-pocket expenses and reimburses the costs incurred during hospitalisation and treatment.

Along with a regular health insurance plan, you must have a critical illness plan in your portfolio. With a rising number of critical ailments such as stroke, cancer, etc., a critical illness plan would help you bear astronomical costs related to the treatment of critical ailments. These are fixed benefit plans that pay a lump sum upon diagnosis of a critical disease. Make sure to buy a health and critical illness plan early to enjoy benefits of lower premiums.

Make sure to pay off loans

It’s prudent to pay off loans and liabilities to enjoy a stress-free retired life. Carrying the burden of loans after retirement can be a dampener and deplete your corpus thick and fast.

Prepayment, increasing EMIs by a certain percentage every year, and directing windfalls such as bonuses for loan repayment are some ideal ways to repay loans faster. Make sure by the time you retire, the burden of loans, if any, are off your shoulders. This will allow you to focus on things you want to do in your twilight years.

The realities of retirement are much different today than they were a few decades ago, because of changes in lifestyle, income and expenditure. Planning for retirement early would help you make the right moves.


Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

Tags


A newsletter from RBL Bank

Stay Informed on the most impactful business and financial news with analysis from our team

Archives: