3 personal finance issue which retirees shouldn't overlook
17 Sep 2018
Retirement could be most beautiful phase in life of a couple, if, finances are properly taken care of. By this time almost all responsibilities of an individual comes to end except taking care of oneself and the better half’s lifestyle and health. If you are approaching your retirement or already retired, here are some issues which you can’t afford to overlook.
1. Have Sufficient Medical cover
It’s a bitter reality, but the truth is old age comes in a package, in which need and frequency of medical attention increases. You must try and get yourself adequately insured at the earliest as many companies become reluctant in giving proper medical cover post retirement or sell it at very high price. Those who get medical facilities from employer even after retirement should also consider buying a Medical plan, as per their need to avoid delay and procedures in treatment when required.
2. Deciding how you will Invest your life savings
Retires should carefully plan to invest their accrued savings, because now there you are not going to get any 2nd chance to correct that mistake. Keep some cash, divide rest of the savings to be invested which you can access at any point of time, avoid any scheme which has lock-in period. Monthly Income Plans, FD’s can prove out to be best friends of retirees, MIP’s even help to beat inflation and are liquid in nature.
3. Estate planning
Thinking about death and how you plan to transfer your wealth, probably doesn’t sound fun. But it is very important to plan it before it happens and if you don’t want your family members to struggle after you die.
If you have not made your spouse your legal beneficiary after you, considers doing it right away. If you have sizable assets, it’s better to form a trust to manage taxes efficiently.
Retirement planning is tricky when you’re flying solo. But the process can seem even more complicated when you’re married. If you want to live comfortably once you retire, it’s important for you and your spouse to formulate a plan for saving, investing and protecting your wealth.
Written by: Anvesh Pandey, SEBI Registered Investment Advisor.