5 Tips To Make The Most Out Of Your Retirement

Retirement planning can be a daunting task. As a retiree, you would want to check all the items off your bucket list and focus more on your personal goals. To achieve that, you need to devise a strong financial plan to fund it all and have a comfortable, secure, fun, and active—retirement. Thus, here we lay out 5 important tips and practices that you must incorporate into your post retirement lifestyle in order to have a solid financial cushion, and ultimate peace of mind.

1. Estimate Your Retirement Spending

Analyse your spending habits by considering recurring costs like utility payments, food, housing, and travel expenses, as well as other unforeseen costs you racked up before retiring, to reach an approximate number. A lot of people who have retired tend to spend their savings on vacations or other wish-list items within the first few years of their retirement. While it's great to finally check items off your bucket list, ensure you've saved up for them well in advance so that you don't have to struggle to meet your regular needs.

2. Invest in Annuity Plans

In an annuity plan, you can make a one-time payment or systematic payments over a period of time during the accumulation phase and get recurring payments for the rest of your life or for a certain set period. To get the best returns, consider investing in HDFC Life New Immediate Annuity Plan to financially secure your retirement. Some insurance products assist you in building a corpus that you can use to purchase an annuity in the future, but if you already have a corpus, you can purchase an annuity right away. Any investor in this plan must be at least 40 years old and at most 100 years old to participate.

3. Invest in FDs

Among retirees, fixed deposits are a popular choice. It is a trustworthy avenue due to its security and fixed returns, along with its simplicity of use. With the ability to select the deposit's tenure, FDs give you the freedom to make contributions at your own pace without feeling pressured.

4. Senior Citizen Savings Scheme (SCSS)

One of the most popular ways for retirees to generate regular income is through the Senior Citizen Savings Scheme (SCSS). Moreover, it is one of the safest as the Indian government is in charge of this scheme.  This scheme has a five-year term that can be further extended by three years once it reaches maturity. One may register several accounts and invest up to INR 15 lakh under this scheme.

5. Develop a routine and stay Active

When you retire and no longer need to wake up for work, it could seem like the weekend is every day. Include regular activities like exercise, volunteer work, and hobbies in your schedule. It's not necessary to make complex plans, but getting together with friends to watch sports, joining a group that meets once a week, or finding another place to go at least occasionally each week are all excellent for your mental health.

Conclusion

Planning for retirement is now more important than ever for individuals. The best course of action is to focus on developing a flexible strategy that can be routinely revised to suit shifting market conditions and retirement goals.

Similar Articles:

• Features and Benefits of the Voluntary Retirement Scheme
• How to check EPF status and balance online

ARN : ED/01/23/31784