Check if your retirement corpus is enough to fulfil your life goals
Today, many of you might be looking at retirement from a different perspective. Gone are the days when Indians preferred sitting back at home to relax after retirement. As a new-age retiree, you might aim to achieve to fulfil your life goals such as traveling, pursuing new sports activities, and so on. Typically, India’s globetrotting middle class retire early to live a high-quality life. According to a report by the Aegon Retirement Index, approximately 54% of people in India choose to travel after retirement.
Fulfilling your life goals after retirement might require a substantial amount of savings as well as investments. Therefore, you might have started creating your retirement corpus to meet your unfulfilled dreams and goals. When the flow of your professional income stops, you should achieve the right balance between savings and investment to help you build a large retirement corpus for the future. Therefore, let’s go through the top six tips mentioned below to check if your retirement corpus is enough to fulfil your life goals:
- Calculate your retirement corpus
The idea behind building a retirement corpus is helping you to meet your post-retirement goals. Before you generate wealth, you should calculate your retirement corpus to understand how much money you would need after retirement. You can use a retirement calculator to determine your retirement savings.
- Draft a budget
Budgeting on a regular basis can help you to keep track of your finances. Moreover, it can allow you to understand if your retirement savings can last for a long time or not. To ensure you have sufficient resources after retirement, you should maintain a budget at a young age. When you draft a budget before reaching the retirement period, you might be able to maintain a disciplined financial habit as well as cut down on irrelevant expenses.
- Save a high proportion of your income
The key to retiring peacefully is by saving when you are young. The earlier you start, the higher you save. For instance, if you save 20% of your income at 25 years, the chances of accumulating more can be high. If you start to save at a later phase of your life, you might build a relatively lower corpus.
- Pay your past debts
Many of you might borrow loans from the market to fulfil your financial goals when you have insufficient resources. According to a report, over 6.90% of the Indian population takes personal loans to meet their needs. If you have past debts, see to it that you clear your liabilities to avoid financial burden after retirement.
- Choose the right investment plan
Investments can be an essential part of your retirement planning process. It can help you to grow your retirement corpus as well as earn profits in return. Therefore, select the right type of retirement investment plan, which can allow you to obtain financial stability after retirement as well as receive high returns on investment.
- Avail a health plan
In India, the usual retirement age is between 55-60 years. During this period, you can suffer from severe health conditions like kidney failure, cancer, cardiovascular diseases, and so on. Since the severity of diseases can be high, you should treat it on time before it takes a hazardous toll on your health. If you do not have adequate funds after retirement to treat your illness, you might tend to ignore the treatments. Therefore, you should purchase a health plan to ensure financial assistance when you are diagnosed with severe health conditions.
To sum up, the above-mentioned tips can allow you to live your desired retirement period. Apart from these steps given above, there are several pension plans and investment options that can allow you to create wealth to meet your goals. Selecting the right pension plan can allow receiving coverage against the eventuality of life by eradicating your financial misery.