8 Facts About Retirement Planning You May Not Have Known

8 Facts About Retirement Planning You May Not Have Known

Retirement is one of the most significant phases of one’s life. There may be some unplanned circumstances and situations. Therefore, one must be always prepared and ready to face any problems or uncertainties. Retirement planning can enable you to define the retirement objectives and march towards their fulfillment. Retirement planning gives you a definite guideline for your retirement life.
Retirement Calculator India is the new age tool that helps you to know the amount that you will be requiring for steady retirement life. It takes into consideration various elements such as your current income, expense, financial planning, assets, and much more. However, only the estimation and figures are not enough for retirement planning.

Here are some important facts that one must be aware of for perfect retirement planning.

1.Forget Retirement

Target Financial Freedom: All your life you have worked hard to live a steady and contented life. The objectives of life are different at different points in time. Nevertheless, the main objective is to have a consistent and easy life when you retire. It is the time when you wish to relax, be comfortable, and away from any burden. Hence, when you are planning retirement, you must always focus on financial freedom. The investment instruments should be channelized and diversified so that you have a decent amount to take care of all your daily needs. Wealthcare Retirement Calculator uses a mix of algorithms to suggest corpus for retirement.

2.Health Insurance Vs Medical Corpus

Though seems to be the same, health insurance and medical corpus are two different things. When you are working or when you are in middle age health insurance may be provided by the employer. Health insurance takes care of all your current health and medical expenses. But a medical corpus is for unforeseen medical needs. In post-retirement life, you would have to take more care of yourself due to the age factor. Therefore, one cannot rely solely on health insurance. One must accumulate a fair medical corpus to treat any medical condition irrespective of the health insurance claim. A medical corpus enables you to cover the medical expenses over and above the health insurance. Even if the health insurance claim gets rejects you must have a fair medical corpus to handle the medical expenses.

3.Life Insurance is Lottery Ticket after Retirement

Well! When you are the sole earner in the family, life insurance becomes a necessity. The family members depend upon you. However, as you retire, things change. You are no more the sole earner of the family. There are other members who can take care of the family expenses. Hence, life insurance takes a back seat. It is not that important. One must analyze various options and insurance policies and keep only those that can help you in retirement life. Having multiple life insurance policies will not help you in your retirement life. It is just a lottery ticket for your family members. One can avoid the same. Retirement Calculator takes into account your investment and insurance planning to arrive at a decent amount for retirement.

4.Products in Retirement are Different

Every decision that we take in life is ruled by various factors such as your objectives, age, financial status, affordability, and much more. When you are young you would prefer investing in investment instruments such as EPF, Equity, Mutual funds, PPF, property, and much more. But when you retire you would want an income from the liquid assets for your routine expenses. It is essential to invest in liquidity investment products for smart retirement planning.

5.Asset Allocation after my retirement

Asset allocation is the key. One must give considerable attention to the assets and their objectives to ensure your assets work in your favor when you retire. It must be able to recoup value on your investment. Your assets must give you some sort of liquidity in form of dividends, interest, rent, and much more. You must build a portfolio that has the capability of beating inflation and managing your current expenses. Retirement Calculator guides you and enables you to optimally allocate your assets for your retirement life. It gives you a definite amount for retirement corpus.

6.Review of Portfolio

Regular review of your portfolio enables you to get a clear understanding of your finances. It is recommended to review the portfolio and make the necessary modifications to suit your retirement goals. Reviewing portfolio and using new-age tools like retirement calculator India to understand the potential of your portfolio. Reviewing the portfolio at regular intervals makes it easy to identify the risk elements in your portfolio and enables you to make informed decisions.

Regrets in Retirement: Well! Retirement is to enjoy and reap the fruits of all your hard work. One must ensure that there are no major regrets in your retirement. Make wise decisions at right time. Study your goals, analyze your investments, foresee trends and then make your decisions. Employ a holistic approach and give considerable thought to executing every move. Avoid taking hasty decisions. Stop, think, analyze and plan your retirement.

8. Goals after Retirement Age: Your goals and objectives should be crystal clear. You should be clear about what you want in your retirement life. Whether it is planning a foreign trip, hosting a birthday celebration, or an event everything should be well-planned to the point. On the basis of your financial goals and retirement plan, you can manage your finances. A retirement calculator gives you an overview of the retirement amount. The output of the calculator allows you to manage and designate your funds astutely.
The bottom line

Retirement is crucial. It is the time when you want to live a stress-free and independent life. Financing and investment planning can have a substantial impact on your retirement. Using digital tools and Retirement Calculator India can be lucrative. It improves your understanding and assists you to plan finances for your retirement.

CA Mukesh Gupta
CA Mukesh Gupta
Mukesh Gupta is the founder and director of Wealthcare. He is Fellow chartered accountant, Certified Financial Planner and Certified Public Financial advisor. He is in financial services industry since 1994. He conducts free money management sessions for corporates and associations on topics related to Personal finance. His previous engagement was with Birla Sunlife group. He regularly writes on topics related to Personal finance and occasionally appear on electronic media.

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