Retirement preparation is a multi-step, time-consuming process. You'll need to create a financial reserve to finance a safe, secure and enjoyable retirement. The fun part is why it's essential to pay attention to the serious (and maybe boring) part of the process: figuring out how you'll get there.
The best retirement plan would allow you to develop a comprehensive view of your life goals as well as the road to achieving them. You will guarantee that your family's quality of life is not jeopardized after retirement by saving and accumulating a sizable retirement fund. Rather a well-devised retirement plan will help you live a happier life in the later stages.
How to Plan your Retirement?
Retirement planning is a gradual process and you may need to make several changes to your plan throughout the years. As per your changing goals, milestones, and life stages, your ideal retirement life planning may also change. However, you need to start somewhere so that you are on the right track. Here are 5 tips to plan a peaceful retirement:
1. To retire peacefully, start investing early
Start pondering on the question of your retirement as soon as you can. You must recognize that being young offers you an advantage that not everybody has 'space.'
Beginning to invest early in life would enable you to build up the requisite corpus without putting too much pressure on yourself. It also offers you a sense of security. Barely one in five Indians consider inflation while planning for retirement. As time passes, inflation grows, and to keep up with the changing cost of living, you have to consider inflation while planning for your retirement.
2. Choose a retirement age
Estimating your retirement age is crucial because, after this age, your daily revenue stream will cease or at the very least be significantly reduced (in case you are eligible for pension). To meet your retirement needs, you'll have to rely on your investment accounts. The average retirement age is 60, but many people prefer to go above or below it.
3. Calculate your retirement spending requirements
It will be easier to define the size and type of a retirement portfolio if you have reasonable assumptions for post-retirement spending patterns. The majority of people agree that their annual spending would be 70% to 80% of what it was before after retirement.
This presumption is usually shown to be unrealistic, especially if the mortgage isn't paid off or if unexpected medical costs arise. Retirees also can spend their first years after retirement splurging on vacations or other bucket-list items. Most of the retirees are not even aware of the amount required to maintain a decent lifestyle after retirement.
4. Reduce expenses that aren't required
Suppose you can't invest right now to meet your goal, cut down on unnecessary expenditures. Weekly entertainment, impulsive acquisitions, working out, overseas vacations, and so forth are all examples of avoidable spending. By reducing these costs, you will spend more to get closer to your goal repository.
5. Keep an eye on the estate planning
Another essential part of a well-rounded investment strategy is estate planning. Having a decent estate plan and life insurance policy means that your properties are allocated according to your wishes and that your loved ones are not financially disadvantaged after you pass away. A well-thought-out strategy will also help you escape a costly and time-consuming public relations campaign.
What is the Need to Save for your Retirement?
A retirement plan would allow you to develop a comprehensive view of your life goals as well as the road to achieving them. You will guarantee that your family's quality of life is not jeopardized after retirement by saving and accumulating a sizable retirement fund. Rather a well-devised retirement plan will help you live a happier life in the later stages. Remember, it is never too late to start planning for your retirement. If you have not started early, you can always start now.
Whatever your vision is, you must start planning now since you will no longer be paid a pension or have a steady source of income after you retire. And you'll need a financial backup to cover your living bills and live out your golden years. With the help of this article, planning a retirement shall be a much simpler task.
The only distinction is that you want to live after retirement, but you do not have a steady stream of profits. You must still be self-sufficient to maintain your independence.
Retirement Plans by Canara HSBC Life Insurance
Canara HSBC also offers a wide variety of Life Insurance Plans to cover your loved ones in the event of your untimely death. You may buy a unit-linked individual insurance plan, or you may invest in the best savings plan that you can tailor to your priorities and needs. Understand your investments and insurance needs and create an unrivalled mix of investment portfolio.
1. Guaranteed Savings Plan
Canara HSBC Life Insurance Guaranteed Savings Plan provides guaranteed rewards and the option to pick your savings horizon. This life insurance cum savings plan enables you to save regularly to meet your financial goal in the long-term. It enables you to strive and attain your goals even if anything bad happens to you. The plan offer assured returns that are not dependent on the vagaries of the capital market. Customise your savings horizon as per your financial needs during your retirement.
Learn more about Guaranteed Savings Plan.
2. Guaranteed Income4life
Canara HSBC Life Insurance Guaranteed Income4Life is a non-linked, non-participating individual insurance savings cum security plan that provides guaranteed payouts and monthly income to meet both long-term and short-term financial objectives.
A very personalized life insurance policy provides varied flexibility in terms of premium payment alternatives, among other things. Guaranteed Income4Life is a highly customizable savings plan that allows you to align the plan as per your life stages and needs. From providing lifelong protection for you and your spouse to fulfilling your kids education needs – this plan is your friend for all the promises you have made to your loved ones.
3. Pension4life Plans
Canara HSBC Life Insurance Pension4life Plan, an annuity scheme in which you will get a fixed level of annuity instalments in return for a Purchase Price, is a wise way to ensure a daily assured income stream as per your needs after retirement. You have the option to collect monthly payments for the rest of your life or that of your partner. Also, you can choose to pay annuity instalments on an annual, half-yearly, quarterly, or monthly basis.
Striking a balance between fair return targets and a reasonable standard of living is one of the most challenging aspects of designing a balanced retirement package. Focus on building a flexible strategy that can be changed daily to match changing market dynamics and retirement goals.