Retirement Planning – Tips for Managing Your Finances


After crossing the golden age of 50 years, by adopting progressive lifestyle modifications and also availing modern healthcare facilities, you can actually look forward to live not less than another 40 to 50 years. Finding a regular and reliable source of funds is vital at this stage of life to take care of your day-to-day expenditure and also to provide for unforeseen expenditures on medical as well as other emergencies during this extended period. Hence it would be prudent to carry out some retirement planning to secure your financial future.

Following suggestions would assist you to manage your financial situation and live comfortably during the next innings of your life. These suggestions are in accordance with the recommendations by specialists who deal with wealth management needs of retired persons and aging citizens.

  • Start with a retirement earnings evaluation. It is best to make an effort to sustain 80% of your pre retirement earnings to live comfortably after retirement. For this, you can make use of the retirement calculators, available at the websites of quite a few banks and financial institutions, to evaluate your post retirement financial status.
  • In case the assessment by the retirement calculator did not provide you with a rosy picture, start organizing your finances and save according to your projected requirements.
  • It would be advisable to set aside a major portion of your funds in secure investments such as Retirement Bonds or Provident Funds.
  • You may also take a look at your investments in high risk stocks and think about reallocating a portion to low risk funds, although they pay back significantly less. Alternatively, as per individual requirements, you may also retain some amount of money in high risk funds, which have the probability of yielding good returns.
  • If you are not covered for medical expenditure by your employer after retirement, you possibly can now plan to avail Health Insurance for Senior Citizens according to your payment capacity. The earlier you begin, the smaller would be the insurance premium. The amount of premium you give if you join at 50 would be a fraction of what you would pay at 65.
  • As part of your retirement planning, it is always advisable to plan what you are going to do productively, following your retirement. You can even think about seeking flexible options from your present employer so that it is possible to earn regular revenue in a stress-free manner.
  • In case you have got sufficient funds and pondering the best way to invest it, it would be smart to consult a trustworthy financial adviser. A knowledgeable financial adviser would be in a position to guide you through your money and wealth management.

A proper retirement planning is definitely important to make sure that you have joyful times throughout the evening hours of your life. It is hoped that above ideas would enable you to accomplish it.

Source by KV Gopalakrishnan

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