When you enter the retirement phase of your life, the first thing that you will realise is that you do not have a regular income from your job anymore. At this stage, you will have to meet all your lifestyle and emergency expenses. Using the funds you have saved all through your employment years.
Though you may be getting income from other sources like rent on a property you own. Planning your finances is important to ensure that your golden years as are comfortable as possible. So, while you are working, dedicate sufficient funds from your monthly income. This will help you to create a substantial corpus that will help you finance your retirement.
Look at important reasons why having a retirement investment plan is important.
It Helps You Put Your Savings to Good Use and Save on Taxes
Having a detailed investment plan for your retirement means that you will get more organised about preserving and increasing your wealth. This will help you curb current expenses and be more aware of the need to save for the future. The key to a good retirement plan is to choose from high-earning investment schemes and safe options too.
For example, if you already have a nest of savings. You can make the best use of them by investing in a mix of options such as fixed deposits, equity, and mutual funds. Divide your savings and invest in these devices based on your risk appetite. Be sure to lock-in your investments for at least 3 years for increased earnings. Continue reinvesting until you need to access the funds after retirement. In the meantime, you can get tax deduction benefits on these high-interest yielding savings plans.
It Helps You Fund Your Lifestyle Post Retirement
Your responsibilities and financial liabilities are not going to alter drastically post retirement. Thus, including them in your retirement plan and investing to fulfil these needs post retirement. This will help you build a substantial corpus through your regular income. These needs may be finances for daily living, funds to pay monthly rent or your home loan EMIs, money for travel or to pursue your passions, or funds to educate your grandchildren or take care of regular medical needs.
One of the schemes you can choose is to invest in a cumulative FD for years until your retirement. You can use the maturity funds post retirement to reinvest in a non-cumulative FD. This will allow you to access the high interest payout on your invested sum regularly. You can use this fund for your daily needs. Choose Bajaj Finance Fixed Deposits as an option to allow your invested sum to gain high interest of up to 8.20% through the entire tenor.
It Helps You Create a Reserve For Emergency Expenses
Creating an investment plan allows you to choose the right options that will come handy when you face emergencies post retirement. Whether it is a sudden hospitalisation for you or your spouse, a wedding in the family. You can then use these funds to meet any such urgent requirements.
One way that you can plan to meet such needs is by parking some cash in your savings account to build an emergency corpus. Alternatively, you can plan on starting a senior citizen FD using your gratuity money. FDs are one of the safest and most secured investment options for you as a retired person.
It Helps You Beat Inflation
Rather than keeping your savings in a savings or current account, creating an investment plan for retirement. A vest Plan helps you invest in options that will offer earnings to beat inflation. The best by choosing instruments that offer high gains to maximise earnings in the long term. This way you can be sure that the money you invest grows over time beating the reducing value of money over time. Mutual funds, stocks, commodities, and currencies are good investment options for you as a retired person.
It Helps You Lead a Financially Independent Life
While planning your retirement, it is important to consider the fact that you need to be financially independent during your retirement years even in the absence of a regular salary. Remember that during this time, borrowing a high-interest loan to secure urgent cash would only be a burden. So, adjust your investment portfolio in such a way that it allows you to stay financially secure so you do not have to rely on your children once you retire.
A strong retirement investment plan will allow you to maintain the same lifestyle that you have been enjoying now, in your golden years too.