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Highlights
- Planning a successful retirement can be a challenging task for anyone since it requires proper evaluation of financial health.
- Retirement is just not about age but also involves responsibilities and liabilities (if any) including loans, insurance premiums and other expenses.
- For a common man with only salary as income source, retirement can mean reduction in total income.
Planning a successful retirement can be a challenging task for anyone since it requires proper evaluation of your financial health, which has a direct bearing on your after-job life. Retirement is just not about age but also involves responsibilities and liabilities (if any) including loans, insurance premiums and other expenses.
Pre retirement moves to secure your old age
For a common man with only salary as income source, retirement can mean reduction in total income. In addition, inflation can be a factor to consider. Thus, it is critical to plan retirement judiciously especially in the uncertain times of today. Here are four things to consider while planning your retirement:
How is your financial health?
The first and foremost is to consider your financial situation while planning for retirement. You should also exactly know about your health, superannuation plans and partner’s needs. The decision to retire should only be taken when you are fully satisfied with your future calculations. It is now you can ask yourself: “When do I want to retire?”
Retirement corpus
After you have evaluated your financial health, it’s time to look at your retirement corpus. Someone who began investing at an early age would always have a bigger corpus than others. A large corpus can make your retirement decision much easier. Thus, always start saving early if you plan to retire early. You must always have an idea about the corpus you need to aim to retire early in your life.
What are your plans to cover up expenses of post-retirement life?
A good investment plan that can properly cover up your expenses of post-retirement life is important. For instance, while young people (25-30 age bracket) can employ the 60% equity and 40% debt rule, people at 40 should have 70% debt and 30% equity for greater security from uncertainties.
Buy a superannuation plan
It is critical to buy a good superannuation plan to make your retirement life secure. You can easily access super when you hit your preservation age (between 55 and 60).
Bottom Line
The above-mentioned tips would definitely help you in having a good post-retirement life. In addition, you must always enter the retirement phase debt-free. You should plan your liabilities in such a fashion that your retirement is debt-free.
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