Around 88% of India’s total labour force belongs to the unorganized sector, in which the workers do not have any formal provision of getting regular pension on retirement. Education, investment, career, marriage, and retirement are the most important decisions of our lives. Some financial advisers are of the view that investors do not really understand or address risk in a portfolio, especially when it comes to saving for retirement. So, build a retirement corpus to stay away from all worries, else you may land yourself into a mess.
The below mentioned checklist will help you enjoy a peaceful post-retirement life.
- Life after retirement
Today, the majority of retirees do not want to spend their retirement like an extended vacation. So, they use this period to start their own business and travel to different places. Some people are even ready to work part-time after their retirement, while other companies hire their old employees back as consultants. But, there is a huge distance between expectations and reality. Hence, be proactive and try and identify opportunities well ahead of time.
- Health insurance
Generally, people have a tendency to rely on their employer’s group health insurance coverage and sign up for an individual mediclaim policy along with various add-on covers at the age of 50. It is a smart decision if you obtain your own insurance early in life to save on premium.
- Maintain inventory of your assets
Flow of income is the major difference between employment and retirement phases. One must have enough assets to live a comfortable post-retirement life. Thus, having a clear picture of your financial assets to check whether you have adequate resources to support yourself for at least 20 years is essential. It is advisable to turn your assets into a stream of income with help of a financial planner.
- Account for sudden expenses
Financial products such as National Savings Certificate (NSC), Employee Provident Fund (EPF), Public Provident Fund (PPF), Atal Pension Yojana, and National Pension Scheme are some of the products that offer you tax benefits as well as help you save for retirement. Invest certain amount in financial instruments such as Senior Citizen Savings Scheme, mutual funds, and fixed deposits to meet your savings target. Take advantage of various online applications to plan your retirement.
Nearly 75% of people in India agree that it will be hard for children to support their parents in the future. Once you collect your thoughts and analyze your situation, then prepare a retirement plan. Make your retirement checklist and jot down your needs. Some precautions taken now could prove of significant value during retirement.