Retirement is a word that brings in happiness and also a lot of worries. There is a lot of tension regarding the pension that a retiree can receive. Will that be enough to survive? Will that be enough to pay the bills? Will that be enough to fulfill every need?
If it is not enough then doing something about it is mandatory. But there is one way that you can be safe. You can start planning in such a way that post retirement you don’t have to worry. Here are 6 tips which can help you plan effectively…
- Set a correct retirement corpus target:
Keeping a retirement corpus target is very important. You need to be very cautious as you want a steady income every month which will help you for your survival. You also need to make sure that the tax liability can also be taken care of. Having a target will help you decide where you can invest and how you can utilize those investments.
- Start saving early:
This is the best advice anyone can give you. You saving early will always benefit you at retirement. The amount however small will keep compounding and increase your corpus over the years. Also you need to remember that as the years go by, your saving capability reduces and lending tends to increase. Hence, saving from an early age will always be beneficial.
- Invest more when you can:
The market has been on an increasing trend over the past 10 years. This means that whoever invested this past decade has benefited. Hence investing a good amount whenever you get an opportunity will help you increase your wealth with time.
- Purchase a house before you retire:
Purchasing a home loan and repaying it prior to retirement helps you save a lot of money. Yes, if you can repay your home loan quickly, that gives you additional years to save and increase your corpus prior to retirement.
- Share some responsibility with Kids:
Do not dip into retirement corpus at every opportunity. It might be necessary sometime but once a while, you must your kids share the financial responsibility. It’s a good learning for them as they would know how to manage their funds along with loans and credit cards etc.
- Purchase health insurance:
The most important need of the hour is health and medical insurance. Having an insurance always helps. There is no worry associated with you as you are covered and the expenses are taken care of. This reduces the burden on your family and also your savings.
