Ensure a Carefree Retirement

Retirement shouldn’t only mean going away from work, but also going away from stress, tension and worries. It can happen only through smart planning. Here are a few points one should take care of to ensure a peaceful retirement:

Consider Retirement Timing

Although early retirement looks attractive, it demands financial discipline and strategic planning in today’s era of economic uncertainty and volatility. One needs to plan for enough funds to sustain same standard of living after retirement. Aggressive saving, carefully investing with prioritising goals are a few important points while planning. Inflation, higher life expectancy, increased health care costs etc are important factors to keep in mind. The decision ‘when to retire’ should be taken after few considerations such as is it possible to retire early without compromising current life style.

Planning is essential

Peaceful retired life is a dream of everyone which can be realised only through right planning. Most of the times people don’t plan because they think planning can’t make a difference. But once they plan, they realise only smart planning can make one financially secure otherwise even enough money is less for a stress free life. Retirement planning usually involves budgeting, selection of investment strategies and continuous monitoring.

Get Out of Debt

Plan to retire all debt before retirement. It will make one financially secure.

Trim the Expenses

A reassessment of expenses will help one in easy retirement.  Find out which expenses aren’t necessary after retirement (such as maintenance of two cars, big house etc). It helps to save enough to enjoy the retirement.

Get Complete Health Care Coverage

Medical expenses rise quickly with age. Although medical insurance alone mayn’t be enough for medical costs, it helps in reducing cost burden in case of health emergencies. A good health insurance policy helps in one’s hour of need as medical costs are escalating high.

Develop Hobbies

Retirement should be the time to do all the jobs which earlier you couldn’t do. Find the things you always wished to do. These things will keep you satisfied and remove boredom. Plan your retirement with an eye on your hobbies.

Investing after Retirement

At the time of retirement, investments need conservative approach with certainty of regular income. On the other side, very low level of risk and avoidance of illiquid investment don’t fetch attractive returns. Inflation erodes money and makes it imperative to earn the return on investments above and over the rate of inflation.  And therefore investment strategies must be selected very carefully. Being over or under weight in an asset class must be avoided. Tax liability at the time of withdrawal of investment should also never be ignored.

Start planning to enjoy your retired life.