When we are young we seem to be caught between gruelling jobs, overwhelming family responsibilities and myriad chores in our day to day life. In a way it’s good to make use of our young life to the maximum because we never know what old age has in store for us. When old age creeps up on us, it finally renders us incapable of meeting the many challenges life has to offer. However, to make your old age brighter, youthful and enjoyable you need to indulge in careful future planning, particularly financial planning in your young days. You need to save not for days but for years together to build up enough assets to cover you during your elder years. Government entities encourage tax advantaged financial retirementsavings with regard to firms and individuals as well. Being financial prepared to meet the demands of a retired life by saving and investing in government policies in accordance with the rules laid down by the government, entails thoughtful consideration.
1 .Get prepared for contingencies:
Almost all of us take our retirement needs very lightly. Once a person reaches old age health is a major concern. Provisions for medical emergencies should be at all times covered. This could be from a simple loss of stamina to something as grave as a heart attack. Medical insurance requires financial provisions. Dearth of government social security schemes and retirement benefits to the self-employed and private sector employees generates requirement for further provisions for contingencies post retirement.
2. Create provisions for greater Medical Expenses post retirement:
After retirement more provision for medical expenses do help. Almost all of us do not realize how increased medicine bills would burn holes in our pockets. A proper medical insurance in place would ensure that most of all if not all costs related to old age are covered. A consideration of your family’s general health, family history of certain genetic disorders and the class of hospital you get treated would help in a proper assessment for medical insurance.
3.Plan in case you retire early:
It is advisable that you provide for contingencies cropping up that would require you to retire early. You could lose a job, suffer a particular ailment, or need to attend a sick or elderly person at home. Many times women need to give up their jobs in order to tend to the family. All of these entail more savings on your part for retirement needs.
4. Be cautious about the sources of Retirement Income:
Be vigilant about the benefits on retirement like provident fund, gratuity and other paybacks. If the social security schemes aren’t up to the mark it is essential to invest more in good income generating sources for stable flow of retirement income. You may consult an investment consultant and should be armed with sound financial education. Being aware of the financial information would contribute to good financial standing post retirement.Your retirement plan needs to be a sound financial plan to make income last you a lifetime. Pensions or annuities providing best income need to be shielded, as withdrawing large amounts from them could end you in financial scarcity in the final years of your life.
5. Secure your Spouse and Dependents who may outlive you:
This need is inevitable and should not be ignored at any cost. Your spouse and dependants should be living a secure financial life after your demise. Look out for insurance policies during your working life that would take care of your dependants and spouse financially if something untoward might happen to you.
6. Assume that you will have a long life:
This is true with increased life expectancy. You can be assured to live longer and enjoy a long retirement life owing to better medical advancements. So it is prudent to plan for the additional years and to avoid living meagerly in old age.
7. Don’t let Inflation raise its ugly head:
Inflation plays a spoiled sport in regard to the financial need of the ugly needs. However, pay rises could help in resolving the issue to a certain extent. But then you need to be able to save more for your old age to beat inflation. An amount that you might consider appropriate for your entire retirement span might not be sufficient then. Investing in modes that give you extra returns could help significantly.
8. Seek Professional Investment Advice:
You need to apprehend the significance of financial advice from professional financial advisors. You should consult your family, friends and colleagues too for choosing a good retirement plan. A good financial advisor in indispensable in letting you decide upon the best secured retirement life. However, as a smart investor you should be vigilant to understand the hidden charges of any of the pension policy you are procuring for yourself. These policies are all heavily front loaded.
Shelly is a freelance writer with varied interests. She writes for Motorcycle Insurance among other sites.