Tips to plan an Early Retirement

Here are a few rules to keep in mind to stay secure even after retiring early:

• Health insurance plans:

  Health insurance has been a deterrent for people wanting to retire early. While companies offer a cover to its employees, buying a private health insurance plan can be a challenge. You don't have to fear losing health insurance, as more and more companies are coming up with comprehensive insurance plans for people wanting to buy them privately. Of course, the premium increases with age, so decide to buy it early on in life.

• Consider moving:

  Living in a lavish house when you are on a good salary and can afford EMIs is not the same as living in it when retired. If you are planning to retiring early, moving to a smaller house will save you large amount of debts. It will also bring your maintenance cost for the house down. You can also choose to move to a smaller city that is less expensive. That way you can maintain a good lifestyle in lesser amount of money.

• Take-up projects:

  You decided to retire to escape the 9-5 slug, but you can always use the extra money. With no income coming in and expenses being on, you are bound to deplete your savings. Instead of taking up a job, take up projects in your area of expertise. This will allow you to work in flexible hours and keep the inflow of money steady.

• Go easy on the cash:

  People usually go on a spree when they have retired and blow up most of their money in the first decade of retirement. Be judicious with your expenditure and consider investing a part of your money in options that help you yield returns.

With the right steps, you can start planning your retirement now and live the life of your dreams.

HDFC Life Pension Guaranteed Plan is a single premium annuity product which provides a regular guaranteed income for lifetime.

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