Learn how to live a comfortable and stress-free retirement


Imagine your post retirement years. You finally have the time to travel to your favourite places, spend quality time with your loved ones, spoil your family with new gifts, and try out new hobbies. But how do you make sure you have enough funds to support yourself for the rest of your life? The key to a comfortable and stress-free retirement is careful planning.

Whether you are in your 20s, 30s, 40s, or even 50s, it is never too early or late to start retirement planning. With right steps and smart strategies, it is possible to build a corpus that lasts throughout your golden years.

Having said that, let’s highlight the steps you can take for a comfortable and stress-free retirement. From planning a budget that fits your lifestyle and buying health insurance to investing in mutual funds and creating a profitable portfolio, these steps can help you make your golden years truly golden.

1. Invest in retirement plans and other schemes

National Pension System (NPS) and Public Provident Fund (PPF) are two government backed retirement schemes that offer attractive tax benefits. By investing in these schemes, you also qualify for up to Rs. 1.5 lakhs in tax deductions under Section 80C of the Income Tax Act.

PPF offers a fixed rate of interest set by a committee based on the changes in the rates of government securities. NPS comes with multiple investment options such as equity, corporate bonds, and government securities.

2. Invest in mutual funds

Mutual funds are professionally managed investment schemes that pool money from individuals and invest them in different securities such as bonds, stocks, and gold. There are different types of mutual funds including equity funds, debt funds, hybrid funds, solution-oriented funds, and more.

They generate higher returns than traditional saving methods but come with risks. To achieve long-term goals, such as retirement planning, experts suggest investing in mutual funds with a diversified portfolio of stocks, low risk, and the ability to generate capital appreciation.

3. Buy health insurance

While it is important to save and invest for retirement in a disciplined way, it is equally crucial to buy health insurance. Healthcare expenses are often a significant financial burden in retirement, especially as you age. Without health insurance, you could find yourself withdrawing your retirement corpus just to pay for medical bills. Here are 5 benefits of health insurance that you can enjoy:

  • Affordable access to quality healthcare.
  • Protection against unexpected medical bills.
  • Coverage for preventive care services.
  • Encourages regular check-ups to maintain good health.
  • Opportunity to choose your preferred healthcare provider.

4. Plan and budget your retirement through professional guidance

Retirement planning requires you to plan and budget your finances accurately with professional guidance. Some important aspects to consider are retirement expenses, lifestyle, food, travel, and healthcare costs. You will likely have more free time to take on new hobbies and interests, so budget for those activities as well.

At the same time, control your expenses, avoid unnecessary loans or debts, and keep your financial position healthy until retirement. Consulting a professional is also wise as they can help you create a personalised plan to achieve your target goals.

To wrap up

Retirement is a time to focus on your health, happiness, and things you love. It is time to live your life the way you have always wanted. You can only do this if you take right financial moves early on. With proper retirement planning, you can enjoy your hobbies, travel around the world, and make memories with your loved ones without worrying about finances. So, plan, save, and invest wisely and focus on what matters most, making the most of your retirement years.

Each generation has their own financial goals and ways to achieve them. To learn more on where each generation is at in increasing their net worth, please see the resource below.

wealth management for high net worth individuals

Provided by Chicago Partners – providing wealth management for high net worth individuals

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