How much funds do you need post-retirement?

by Abhishek K. Digital Business Executive

“A substantial 83 percent of workers in India had a coherent plan in place for retirement as per a 2018 survey aimed at studying attitudes and preparedness for retirement in India. Out of these, 28 percent of the respondents stated that they had a written strategy towards their retirement savings. According to the global findings of the same survey, Indians were the most prepared for retirement that year compared to other countries across the globe.” –Statista

 

The above figures pertain to a period of the world before the ongoing pandemic and the consequential uncertainty-ridden employment scene. The emphasis on saving and planning for early retirement is higher than ever now. How many of us are tired of balancing the endless abyss of expenses against a seemingly a trickle of an income in the current scenario? How long are we prepared to fight the highs and lows of a disturbed economy?

 

Financial planning for a secure hassle-free retirement just takes a little bit of planning. The sooner you want to retire, the longer will be your post-retirement life logically. Therefore the ideal retirement corpus fund needs to be planned accordingly.

 

Steps to plan for a retirement fund- 

 

·         Jot down your goals for a retired life-

 

How do you foresee your retired life? Travel? Setting up funds for your children after they are grown up to help meet their financial responsibilities? Do you intend to invest in a home for your partner and yourself? Just note down each plan and scrutinize them. Categorize them into priorities and the amount that would go into each.

 

·         Assess your current inflows-

 

What are your ongoing expenses? How long do you think they would continue? Take stock of your lifestyle and depending on your age, will you be able to get additional income shortly. Remember that you may need at least 80 to 90% of your pre-retirement income to meet your retirement goals. Plan and cut out unnecessary expenses first and work towards holding back a chunk of your income to plan your retirement corpus fund.

 

·         Identify additional retirement income sources and risks-

 

Retirement income may come from a variety of sources such as a pension, interest from fixed deposits, say a sale of property, or even part-time work you may take up. The after-tax benefit of each source of income needs to be considered balanced against factors such as inflation, increased lifestyle expenses, etc. Pay close attention to each variable factor and prepare.

 

·         Do not ignore health care issues-

 

Let us remember that usually stepping away from employment usually brings a change in health care insurance coverage. In such cases, you may need to secure health insurance on your own. Long-term care insurance plans often present a confusing array of choices. How do you determine if it is right for you? A careful evaluation of your situation is required or opting for the right plan which includes life cover is advisable.

 

·         Do not shy away from consulting a financial advisor and conduct research of your own too-

 

Some individuals can plan their income well but for most a professional overseeing their situation is a better option. A good planner ensures that a retirement portfolio maintains a risk-appropriate asset allocation and, in some cases, can provide advice on broader planning as well.

 

Conclusion-

 

Start early and choose wisely. If you are yet to embark on this journey of planning your retirement fund, it is about time you took the first step. We have chalked out several flexible savings plans which will not only help plan your retirement but also assist in providing the right financial cover for your loved ones.

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Created on Oct 18th 2021 04:46. Viewed 490 times.

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