Changes Taking Place in Lifestyle After Retirement

According to experts, one should look towards a sizeable amount of money when planning towards their retirement.

Here are few major changes that you can expect once you retire -

1. Spending on healthcare:

   While many of us are health freaks today, life has a tendency of catching up and at that time it will likely take up more of your resources than it does today.

   One must note that as you get older, your Health Insurance premiums also increases and getting rid of Health Insurance may not be as smart plan as you think it is today.

2. Almost no income and loads of spare time:

   While you hate the fact that you get no time for yourself today, you will have excess amount of it once you retire.

   That is the time when all these all-nighters and extra working hours should pay off as you would be able carry out work for which you had hired help at present.

   So, save up accordingly that you can spend time doing what you love.

3.  Likely be an empty nest:

   If you are a parent, there is a huge possibility that a large proportion of your monthly expenses is going towards your kids.

   When you retire, your kids will hopefully be all grown up and capable of supporting themselves.

   While this is good, let’s be practical and not rely on them as a source of income at that time.

4. Changing entertainment needs:

   What excites you today would appear mundane to you once you grow older.

   Also, if you are a workaholic and think you will get to travel and enjoy when you retire. Please note you could end up spending more or might not be able to enjoy much at that age so plan accordingly and reasonably.

5. Paying someone to take care of you:

   As we mentioned above old age brings with it the very real possibility of deteriorating health. Thus, there will be a point when you won’t be fit enough to take care of yourself and might need to pay someone to take care of you. So, start thinking seriously about what kind of caregiving you can afford when you reach that point.

6. Inflation:

   Looking at above factors you would have realised that inflation plays a big role in one’s retirement plans. The current figures could double or triple by the time you retire, its best to assume an inflation rate of 5% every year and plan accordingly.

   Compounding works best when it is not withdrawn mid-way and a committed approach is given to retirement savings.

   Here are few plans by HDFC to help your retirement savings.

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• Why You Should Consider Working in Your Retirement
• How to find your passion after your retirement?

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