STEPS YOU MAY TAKE TO ENSURE A WORRY-FREE RETIREMENT
Longevity Risk, Lifestyle Risk, and Health Coverage Risk are the three main concerns after retirement.
When it comes to longevity, lifestyle, and health coverage, “the danger of outliving one’s assets is the most significant; the risk of having to make sacrifices in one’s post-retirement lifestyle owing to health difficulties is the second-largest.”
If you want a stress-free retirement, experts recommend that you confront and plan for these dangers.
Many financial advisers stress the necessity of retirement preparation because it’s a time when most of your income sources will be gone. In addition, as life expectancy continues to rise, there are more years of retirement to plan for.
Retiring is expected to become a major concern for many people as life expectancy increases and health trends change. The recent economic climate has been exacerbated by the epidemic, which has resulted in weaker wage growth, financial insecurity, and job losses. Prashant Tripathy, managing director and CEO of Max Life Insurance, says it is critical to understand the current sentiment and challenges of our customers as we plan for the future.
India’s Retirement Index Report (IRIS) is at 44, with impending health and financial concerns and strong emotional readiness as India relies on support from family or society, according to the study. On a scale of 0 to 100, IRIS measures how prepared Indians are for retirement.
HERE ARE SOME THINGS YOU MAY DO TO PREPARE FOR YOUR RETIREMENT:
- I bet you’ve never given much thought to what you’d like to accomplish in your life when you’ve got more time on your hands.”
- As one nears one’s golden years, understanding the meaning of money, life objectives, and planning for them will keep one going strong.
- Evaluate your present spending and requirements, taking into account your desired retirement lifestyle and expected inflation rates. Some expenses, such as children’s schooling, may not be incurred after retirement, while others, such as life goals planning and healthcare, may be.
- Most financial experts agree that this exercise should be performed at least once every year in order to ensure that the most recent data is used to make course modifications.
- The retirement corpus requirement, long-term financial goals, current income and savings rates should all be taken into account while building your investment portfolio.
- The progress you’ve made toward your retirement goals should be taken into consideration while revaluating your portfolio and asset allocation.
- After retirement, make sure you and your partner have appropriate health insurance to cover medical bills (assuming your children will have their own insurance as adults).
SAVING FOR A COMFORTABLE RETIREMENT IS THE PRIMARY GOAL
More than 60% of those who invest for retirement do so for the sole purpose of managing their health and medical costs in their later years.
63% of people believe that saving for medical emergencies during retirement is vital, but only 8% of those surveyed indicated they saved for emotional support, according to a new study
Most Indians invest for retirement so that they don’t have to rely upon other people for their financial needs, with 38 percent investing to maintain a standard of living in retirement as their primary goal.
OBSTACLES TO A SOUND RETIREMENT PLAN
More than 80% of respondents in the older age groups said they regret not starting retirement planning sooner in their careers. However, 23% of them haven’t given any consideration to saving for retirement.
CONSIDERATION TO SAVING FOR RETIREMENT
Indians assume that their family will take care of them in their old age, which is one of the main reasons why individuals don’t save or invest for retirement. The majority of Indians (more than 35 percent) feel they will have enough family wealth or other resources to get by in retirement, while 45% believe they would receive help from their offspring.