Retirement is inevitable but there is nothing to be scared
To make your life after retirement super happy you must start saving from now.
Have a solid plan ready for your retirement so that you don’t have to depend on anyone for finances, not even on your kids!
People often fail to think realistically, but there can be various downsides of depending on your children for financial help.
Firstly, who knows it might become very hectic for your child to make ends meet. The immense financial pressure on them can lead to depression and a lot of other health issues. If you can fend for yourself, your children can use their money to save for their future. Wouldn’t you always want them to be happy and tension-free?
Why should you depend on your children’s sympathy? You have worked hard your entire life, never depended on anybody else, so why now? Don’t wait for the day when your children will come to you and say, “Sorry dad and mom, we can’t help you anymore”.
If you are dependent on your children post-retirement, they will worry about you. Plus your pride and emotions are intertwined with this sensitive matter. It is always better to be self-reliant, rather than hearing a “NO”. Just think about it, you are depending on your children for simple things in life, small desires and all, is it always possible to ask for money from children? Won’t you feel bad? Ask yourself a few questions and you’ll know what we are talking about.
Retirement is inevitable but there is nothing to be scared; with proper planning, you can relax totally without having to worry about anything. Just wonder how your life is going to be after retirement – you want it to be happy right? So, don’t neglect the retirement plans; remember, being self-reliant is the best policy after retirement.
And in case you are looking for ideas, we have got some amazing ones ready for you. Let’s move on…
- Choose a health insurance plan – After retirement, you can do many things that you have always desired, such as go on an exotic vacation with your spouse, get up late every morning, laze around without a single worry about going to work, dine at the finest restaurants in town and whatnot. But illnesses are part of life, so be prepared for that too, with a health insurance policy. Even if you have to visit the hospital for treatment or checkup, there will be no need to depend on your children. Getting health insurance done while you are still in service will definitely be one of the best decisions ever!
- Mutual funds are a brilliant option – Invest in mutual funds because this can be your lifeline after retirement. A good thing about government employees is the fact that most of their retirement-related issues and financial parts are taken care of but what if you worked in a private firm your whole life? Or suppose you have a business i.e. you are self-employed?Mutual funds is the answer to all your problems. Mutual funds are known for providing amazing returns. If you want to invest in mutual funds then it is better to opt for Systematic Investment Planning or commonly called SIP. This way you will be able to manage your financial aspect plus you don’t have to worry about your post-retirement life. Suppose you are 30 years today and you decide to invest say 10k at 12% interest rate annually. If you carry on with this plan for 30 years more i.e. by the time you reach 60, you’ll be having a total amount of INR 3.50 crores (approximately)… can you imagine how great the value is?Now talking about the benefits… there is no hard and fast rule that you have to deposit a minimum amount in case of SIP you can even start with 5k if you like. Switching between debt and equity instruments is so easy; this will help you deal with risks as time will pass by. The ELSS will further help you to get a hefty return from your tax liabilities per year. If you contribute to ELSS, the amount becomes tax-deductible as per the norms of Income Tax law, section 80C. You will have flexibility with your funds; you can take out your entire money whenever necessary, tax efficiency is amazing along with transparency; you can easily get all the information.Mutual funds are a true friend during your retirement years. You just don’t have to worry about anything.
- Have you considered investing in fixed maturity plans? –If not then when will you? If you invest in this you will not only gain tax benefits but also the returns after 3 years or more will be pretty hefty.
- Start saving early – To make your life after retirement super happy you must start saving from now. Start taking baby steps from now on so that when you reach 60 you will have enough to rely upon.
Who doesn’t need money? If you have monetary security remember half of your troubles will be lifted from your head. You can talk to an expert about how you can start saving as there are many plans where you can invest in. A financial expert’s opinion will offer some peace of mind but then you must also keep an eye on the market trends, understand which plan is better for you and so on. If you want to reap benefits, you have to put in some effort.
- Invest in gold or maybe real estate – You can also have a backup plan ready to invest in gold or real estate so that you can reap the benefit later. Investing in gold and real estate are traditional ways to safeguard your future but at the same time, there are risks involved which is why understanding the market is very necessary. You can invest in fixed deposits as well. For people, having their own enterprises fixed deposits is a good way to save and have a secured future.
- Schemes like SCSS are great too –There are different schemes available such as SCSS or the Senior Citizens’ Saving Scheme. You can avail this scheme if you are 60 and up. Under this scheme, you will be provided with an interest rate of 8.6 per cent per annum plus if you want you can extend it for three more years after its maturation. You can invest up to INR 15 lakh under this scheme. The interest rate is pretty attractive also it will remain constant and you will don’t have to worry about your monthly income as steady cash flow will be ensured. You will be able to gain tax benefits and under section 80C if you need you can withdraw the money according to your requirement but you also have to pay the penalty amount.
- Buy life insurance for others in your family –Get life insurance because after your death you don’t want your spouse to feel helpless, right? And life insurance will allow them to live without the slightest financial crunch, and of course, without depending on your children. So, secure their future too, by investing wisely in a reliable life insurance scheme.
When you are financially independent even after retirement, all you need to do is just sit back and relax … you have got everything sorted!
That’s why Comparte Investment team asks do you have “Nivesh Ki Aadat”.
With this one can say “Mutual Fund Sahi hai”, so let me do Nivesh