Reaching the age of 50 years is a milestone in numerous ways. Not only is your life open to welcome new adventures and opportunities, but it comes with some financial hurdles as well. One of the most complicated financial difficulties that a person can encounter is planning for post-retirement life. This problem can become pressing when you have entered your 50s and still do not have a retirement plan.
However, you might have heard that it is always better to start late than never start at all. Hence, you must not feel disheartened as planning for retirement in your 50s can also bring you stable returns in the coming 5 or 10 years to lead a well-disposed life after retirement.
Four Ways to Plan for your Retirement in your 50s
It would always be a smart choice to have your retirement plans in place by the time you reach the age of 30 or 35 in your life. However, if you haven’t planned for your retirement already, there is still some hope to resolve this situation. Planning for retirement in your 50’s will have to be distinct from what you would have portrayed planning in your 20’s or 30’s.
The main reason for this is that you a set number of years left to catch up for all your lost time at this stage of your career. Your retirement planning will have to be thoroughly calculated as you must carefully balance the risk and reward. Mentioned below are some of the tips you can follow to save for retirement in your 50s:
1. Assess your financial requirements
One of the most important tips you must follow if you plan for retirement in your 50s is to consider all your financial requirements and status. Taking a look at your prevailing financial situation is important to build a more informed plan to fix all your monetary obligations.
This financial requirement and status can easily be calculated, taking into account your present and future expenses along with calculating your current assets and investments. In addition to this, you must also analyze how long the funds you have will persist. You must always keep in mind the inflation factor while determining these requirements.
2. Focus on savings
Another thing that you must follow when you plan for retirement in your 50s is to focus more on your savings. This is the only way through which you can expand your investment for a peaceful retirement. You can choose the retirement or pension plans that offer a higher return on investment or increase the sum you invest every month.
At this stage in your life, your main focus must be on maximizing and increasing your savings. According to various financial experts, if you are in your mid or late 50s, you must always look for low-risk investment options that allow you to save around 35 to 40 percent of your earnings.
3. Don’t rely too much on the provident fund
Provident Funds are regarded as one of the most secured investing platforms, and it is highly recommended that every person hold a PF account. However, relying solely on your PF for post-retirement requirements is not something you should attempt for.
You must always ensure that your investment portfolio holds a mix of equity and retains the returns on investments on an upward graph. If you hold only 10 years left for your retirement, you can initially begin your investments with some equities and progressively shift to more secure options.
4. Invest your funds in the best pension plans
If you are commencing your retirement planning at the age of 50, you must know that there is not much time left for your retirement. Hence, it is always good to invest your funds in the best pension plan that gives you higher returns in a lesser duration.
However, you must note that when you invest in retirement or a pension plan, your premium amount will be higher than what you would have spent if you opted for a pension plan in your 20s or 30s.
Canara HSBC Oriental Bank of Commerce Life Insurance offers a wide variety of savings plan to help you with your retirement planning. Here are some of the best pension and retirement plans to invest in, even if you are in your 50s.
1. Invest 4G
Invest 4G plan provided by the Canara HSBC Oriental Bank of Commerce Life Insurance is a Unit Linked Life Insurance Savings Policy. This assists you in meeting all your short and long-term goals as it can get tailored as per your requirements.
2. Guaranteed Income4Life
This Guaranteed Income4Life plan is another pension plan that provides you with a fixed monthly income, along with premium protection option and option to cover your spouse. As it provides a regular stream of income during your retirement, you can consider this retirement plan and align your financial goals accordingly.
3. Guaranteed Savings Plan
Guaranteed Savings Plan comes with a Premium Protection Option assists you in obtaining a guaranteed income post-retirement. It has various plan options that you can consider as per your risk appetite and savings goals. It also provides life cover for the complete term while you pay premium for limited period.
Retirement planning in your 50s is not an ascending battle if you remain focused and do not make any determinations out of panic. Keep your plan manageable and prioritize your requirements over your wants. Planning and strategizing your financial goals can help you map the perfect plan that you need to have a peaceful retirement life.