Life after retirement? That must be a complete hell; at least the ordinary people who are often challenged by scarcity of money think that way. During their service life, they find it hard to meet both ends meet. So, it can be imagined how much trouble they will face in post retirement phase. However, retirement does not equal to troubles for everyone. If you start planning earlier and apply some acumen, it is possible that you will enjoy a smooth sail in twilight days.
First of all, just think what you will lose after retirement? No clapping to guess! You will receive no monthly salary. Not only that, you will also miss other facilities like increments, medical allowance, travel grant, bonus etc. It means inflation will hit you harder than what it is doing now. For some retirees, problems get to such a height that they are almost forced to liquidate some of their assets. Lesson to learn – plan well and plan earlier to enjoy happy retirement!
What many of us find challenging is how to make a balance between income and expenses once we retire from our job. If you have been living a carefree, luxurious life, will it be possible for you to do a big compromise after retirement? Even if you compromise, can you live happily thereafter? Earlier you realize this fact, better you can lead your retired life. Now let us see what benefits you can get if your retirement planning is done perfect. First of all, you can definitely accumulate a lot to support your post-retirement days. There are a lot of retirement schemes investing in which will pay off dividends throughout your life. If there are some sources to get monthly income from, it will be easier for you to manage household expenses and maintain the same standard of living. Here are 3 steps that can help you enjoy a happy-go-lucky retirement.
First make an assessment of the cost of same standard maintenance. You obviously want to enjoy the same lifestyle. Estimate inflation-induced price rise when you will take retirement. Consider healthcare cost, travel expenses, children’s’ higher education, rent fees, loan cost, family celebrations etc. Make a total of all these estimated expenses and you will get a rough idea of how much will fit your case.
Pay attention to regular saving. Once you have found out how much you need after retirement, it will be easy to estimate what should be accumulated to substitute your pre-retirement earning. I think that you must pile up a little more than your pre-retirement income.
When you will invest in a healthy retirement planning, consider some parameters like portfolio balancing, risk, taxation, diversification, estate planning. It is because you need to manage all of them. Make sure that you have enough liquidity to serve contingency purpose.
The key to a successful retirement planning is perfect utilization of your income in both categories – consumption and saving. Assess your needs at every stage of life and take a discipline approach towards investment for retirement purpose.