Hyderabad: After toiling hard for three decades, a few questions still linger in the minds of the retiring people. Have I saved enough? What would happen if I exhaust all my savings? Where to invest retirement benefits? Either in money-fetching schemes or stay invested in safe deposit schemes? What if I work for a few more months? What I am going to leave for my legal heirs? Such questions are obvious. The answers to these varied questions vary from person to person, depending upon his/her financial planning and discipline. But, a few things remain the same for all.
What's your financial worth?
Despite being harsh, you need to check your financial worth. For that, you need to count every rupee you earned. Pen down the financial details like the shares you have invested, mutual funds, life insurance policies, real estate, deposits and cash on hand. In addition, write down your pending responsibilities. Along with it, look at your regular income like pension, rent on houses and annuity plans. When you combine all these earnings, you can arrive at your net financial worth. If your income is higher and responsibilities are lesser in comparison, then you are assured of peaceful retirement life.
Read: The art of good living: Tips to help you plan and enjoy retirement life
Don't be in hurry...
Many people tend to put all their retirement benefits into a savings scheme, which is not a good practice. First, you have to analyse your requirements for the next 15 to 20 years and then plan for short, mid and long-term investments accordingly. Post-retirement, people advise us not to invest in risk-based investments. We have to keenly observe one thing here. Keeping in mind the requirements after 15 years, despite the risk, investments made in equity or hybrid mutual funds are bound to fetch good returns. You can try to earmark 25% out of the available amount for this purpose. Better to invest in the market for the long term, rather than indulging in quick buying and selling of shares, which could wipe out all your money. The amount allocated for equities must be diverted into the market in a phased manner for at least two years. The returns on secured schemes can range from seven to eight per cent. Market-based schemes could give returns of at least 10 per cent. Additional income earned could be utilised for important things in life.
With perfect planning...
It is well known that inflation is soaring, so better maintain cash flow to meet your expenses. Incurring wasteful expenditure has nothing to do with age, so try hard to curtail them. Though every need is not important, there are certain yearly expenses you need to be prepared for. For instance, year-end holidays, other fun activities, and gifts for children. Hence, keep cash flow ready to meet these requirements.
Health insurance must...
To cope with soaring medical costs, health insurance is more of a necessity than a choice. No doubt, health insurance policy is expensive for people above 60 years. Policies are available for even existing illnesses, but at the discretion of the insurance company. Better continue paying premiums, if you already have a policy. If you are taking a new policy better avoid family floater-policy, couples need to take policies separately, to save on premiums. Despite a policy, keep Rs 5 lakh in cash for medical emergencies.
