Managing finances is crucial at any stage, but it gets extra critical after one’s retirement. The golden years bring a newfound freedom, ease and time to indulge in things you’ve been putting off for a while. But it also requires a prudent approach to managing finances, so you can build on the financial stability you’ve achieved throughout your life. Here are some key steps you can take to plan your finances post retirement:
- Budget with Limited Income in Mind
Retirement means a realignment of your income. The steady earnings you’ve had all your life have probably come to an end. That means it’s time to evaluate your spending keeping your new situation in mind. Re-look at your budget for housing, groceries, healthcare, but make sure to keep some discretionary funds to embrace new adventures like travel or any other hobbies.
In addition to your regular savings, it might be a good idea to look into senior citizens savings accounts for more lucrative interest rates. This is the time to explore other options like the Senior Citizens Savings Scheme which was introduced by the Government of India in 2004. It offers a regular stream of income with the highest safety and tax saving benefits.
- Prioritise Health Insurance
Ensure that you have adequate health insurance coverage. With age, the probability of needing health insurance will only multiply. Regular checkups, health screenings, medicine costs can make a dent in your savings. A solid insurance plan can help shield you against high costs. It might be a good time to explore other, more robust health insurance options than the one you had before.
Inflation is a universal truth that affects people every year. It can be aggravating if it’s eating into your savings, especially now that the source of continual income has come to a close. Try to invest in inflation-protected avenues or income-generating assets that can help you keep up with rising costs. Mutual funds could be a great option to further supplement your savings.
With thoughtful planning and a smart strategy, retirement won’t look daunting. You can navigate your finances to ensure your savings provide the much earned comfort, security, and a fulfilling retirement experience.
ALSO READ:
Why Mutual Funds Are the Smart Way to Invest
Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.