Since the first day of your job, you start working hard for a better life. Rising through ranks and positions in your career, there comes a time when you can actually appreciate your own accomplishments and enjoy the fruits of your labour. It’s called retirement! After all those years of hard-work, retirement comes as a blessing that lets you live a life of leisure.
Though you must have saved enough for your sunset years, a proper financial planning is needed to deploy your retirement corpus and savings in a way that it lasts for the rest of your life. You have to depend on the returns of your investments and prepare for contingencies at the same time.
Follow these simple tips to make the most out of your retirement corpus:
Plan for a Regular Income- For retirees, especially those who do not live with their children, a regular source of income is of highest importance. The cost of living keeps on increasing due to inflation. So one needs to plan for an investment that gives regular returns to meet their living expenses. But the time period for which your corpus will last depends on your expenses. Long-term fixed deposits would be a good idea as it offers fair returns. You can also buy commercial real estate under the assured returns schemes. Builders ensure a regular return of around 12% per annum on your investment.
Invest your Retirement Corpus- It is always a better idea to invest your money than keeping it in the lockers. Senior Citizens Saving Scheme is a good option for retirees as it ensures regular inflow of cash. It is also eligible for tax deduction u/s 80C and earns interest @9.3%. Long-term FD can also be considered as a viable option. If you have always been a keen investor in equities, putting a smaller part of your corpus in shares can also be good idea. Though it is a risky affair, it can also lead to considerable windfall gains.
Get Rid of All your Debts- You should not carry your debts after retirement. Try to get rid of all the loans before you retire. Paying interest on loan along with meeting your living expenses can be troublesome when you are dependent on the income from your investments.
Get a Health Insurance- Your health should be the most important concern during retirement period. An old body requires frequent medical attention which results in medical bills. Get a health insurance while you are still in service in order to enjoy its benefit later. The inflation rate in healthcare sector of India is 15-20%. Medical bills can wipe out your savings in no time. Get a health cover in advance to save yourself from these costs.
Whether you belong to the super-rich category or middle-income category, you should make a will to divide your estates. Do not leave your loved ones to run around courts in order to prove their legal heirship on your property.