The usual retirement age in India can be between 55-60 years. After retirement, you might either plan to lead a comfortable lifestyle or achieve your post-retirement goals, such as traveling, starting a new venture, etc. Although sitting back at home can be relaxing, you might prefer meeting your unfulfilled dreams after retirement. Fulfilment of your dreams can be achievable with these top seven steps mentioned below:
- Calculate your corpus
The most crucial step to lead a comfortable retirement period can be to calculate the amount of corpus that you require. Ideally, you should start by making a list of your current expenses and future expenses after retirement. As an aspiring retiree, you can use a retirement calculator to determine the amount that you require to meet your post-retirement goals as well as stay financially prepared in the case of a contingency, such as medical emergency, critical illness, etc.
- Begin retirement planning early
When you are young, retirement might seem far away. However, you should start your retirement planning after receiving your first paycheck. At a young age, you can invest Rs. 5,000 every month in a pension plan and build a retirement corpus that can be worth Rs. 75 Lakh by the time you reach the retirement age. That way, you wouldn’t have to worry about finances in the future when the flow of your professional income stops after retirement.
- Invest in tools systematically
Investments can ensure the productive utilisation of your savings after retirement. Therefore, it can be crucial to invest in the right retirement investment tools for the growth of your money. Additionally, you can earn profits in return from your investments that can let you save more money. The right retirement investment plan can allow you to reap its benefits as well as ensure you reach your post-retirement goals faster.
- Diversify your investment portfolio
While investing can be crucial, diversifying your investment portfolio can play a significant role in your retirement planning system. It is essential to diversify your investment portfolio since it can protect your invested capital from the market risks. Moreover, it can allow you to generate returns based on the fluctuations of the market.
- Buy sufficient coverage
Insurance coverage can become an imperative need once you grow older. When you are old, you might suffer from health conditions, such as heart attack, stroke, kidney failure, and so forth, that can be life-threatening. If anything happens to you in the future, your family might be unable to lead a financially secure future. Under such a scenario, having insurance coverage can come in handy for protecting your loved ones in your absence.
- Build an emergency fund
The growing unpredictability of life can throw you off guard if you are financially unprepared. To protect your loved ones from financial contingencies, you should build an emergency fund. With an emergency fund, you can have an ample amount of resources to tackle a situation without worrying about financial constraints. Ideally, you should create an emergency fund by keeping aside a specific proportion of your income that can look after unannounced expenses for over 3-6 months.
- Update your retirement plan regularly
As you cross specific milestones in your life, you should update your retirement plan. For instance, after you get married, you should update your retirement plans based on the financial requirements of your spouse. Update or reviewing your current retirement plan can allow you to make the necessary adjustments based on your evolving needs.
As highlighted above, making your post-retirement goals a priority can be the first thing in your mind after your retirement. Hence, see to it that you take the right measures mentioned above to live the desired life when you retire. You can also consult a professional who can ensure you realize your goals faster with the right expertise and adequate finances.