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Retirement Planning
 
Retirement today is not the same as it was for our parent’s generation. The generation today does not want to fade away into woodwork. We want to live a full life after retirement. We want to maintain an active lifestyle and not be dependent on our children. Hence retirement planning takes on a very important role.

Retirement arrives as a big change in life. You wake up one day and do not have anywhere to go. So the big question is, “Are you ready for it?” What do plan to do after retirement – after seeing all the movies you have saved up, after taking the world trip, after learning to make your breakfast – what do you plan to do?
 
For most of us, 60-65 is not old age and we are not quite ready to read the news paper and watch TV all day long.. The body and mind are active and you could use your experience for a related work area – a consultancy, teaching, start a business. Besides, keeping the mind supple, it will supplement your retirement income. So if you are nearing your retirement age, it is time to start planning for a post retirement innings.

What to do after retirement?
Basically one has three needs after retirement to lead a happy life

  • Firstly sufficient income to lead a satisfied life style
  • Secondly to love and to be loved
  • Thirdly to feel that one’s retired life is utilized to achieve one’s own set targets
 
Retirement planning involves fitting together many puzzle pieces to provide your ideal situation. 
 
  1. Ensure Monthly Income – Pension and Interest on secured investments.
  2. Medical-Health Insurance of self and spouse is a must as in old age expenditure on medical expenses is uncertain and can make the life miserable if not adequately insured.
  3. Provision for marriage expenses of unmarried children and impact of this expenditure on Monthly Income as per (1) above.
  4. Due to inflation and devaluation of currency the purchasing power of an unit of money is declining daily. Out of monthly income one has to save and add to investments so as to increase  the monthly income to an extent that nullifies the impact of inflation and devaluation.
  5. Liquidity of the investment is very important.
  6. Risk taking capacity decreases with the increasing age and one should avoid taking risks with his/her life long savings.
  7. Pensioners may invest 65% of their investible funds in low risk, 30% in Medium Risk and  5% in high risk categories. There are no Zero Risk investments and such investments are  called Low Risk investments.
  8. High Net worth Individuals can invest 60% in low risk, 30% in medium risk and 10% in high risk categories.
  9. You must take care of your life long capital by ensuring:
    • Maximize returns on investments without taking any risk.
    • Minimize risk of capital loss. Keep away from stock market or related products.
    • Invest in such a way that you get the maximum income tax free interest income. Separate capital for unforeseen circumstances.
 
Preserve the following documents carefully:
  • Details of Bank Lockers, Key Numbers and upkeep of Keys.
  • Details of Bank Accounts and other investments.
  • Proper upkeep of Cheque Books, Share certificates, De-mat accounts, Life Insurance Policies, Health Policies along with 3rd party ID Cards, Pension Papers, Recoverable and Payable money from/to friends and relatives, Title deeds of Property, General Power of Attorney if given to anyone, Original Will (Execute if not already done) etc.
  • Proper upkeep of Password of email ID, ATM and Credit Cards, Bank accounts, online profiles, net banking, life insurance, vehicle insurance, De-mat trading accounts, Income Tax e-filing, and other valuables.
 
Ensure nomination in all investments accounts, lockers, Insurance Policies…
Nominate your Digital Assets also Timely
Due to modernization and online culture more and more physical assets are being converted into Digital Assets. Retired and Senior Citizens being owners of such digital assets are not familiar with the system and procedures to pass on their digital assets to their legal heirs. In the future even your email ID's, Author Profile ID's on various sites, generating passive income may not find their legal successors. Even dedicated Mobile Numbers authorized to receive OTP or 2-step security passwords might also come with the option to have secret nomination of Mobile Chip to access the online accounts. Keeping in view the complexities involved as a senior citizen you will have to ensure that you have nominated for all your online profiles and digital assets along with supported mobile Chips.
 
Make A Will…
 
 
For more information, please do contact us.
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