The global pandemic has brought a new living culture to all of us. Even though the world is still puzzled about the future, it’s high time to think ahead in your life and make meaningful, worthy decisions for a better tomorrow which might demand a lot.
For elders, the life ahead is likely to be a nervous one, as the pandemic affects the elders more than others. Hence, the importance of retirement plans plays a crucial role in their life today more than ever.
However, there’s a difference between today’s retirement planning and what was it like a decade ago. With the advent of technology and science, the life expectancy of the elders has significantly increased over the years. Nowadays, retirees dream about spending their post-retirement life doing things which were unfulfilled during their working years; such as family vacations, novel writing, spending time with their peers, running marathons, pilgrimage trips and more.
At EldersWealth, we help you plan for a relaxed retired life and turn your dreams into reality. Our experienced team can draw a customised financial plan for your golden years which includes everything from budgeting, identifying goals to selecting the most suitable investment plan for you. We will assist in making key decisions to lead a financially independent and a relaxed retired life that you dreamt of.
Here’s a four-step-guide for your dream retirement.
- Start at the right time
It is prudent to start planning your retirement as early as possible. The longer the time for retirement, the more time to average out or minimise the investment risk. Starting early gives you an opportunity to invest small amounts and make the most of various market phases/cycles across a long time horizon.
- Assess post-retirement lifestyle
Your post-retirement lifestyle plays a crucial role in your retirement planning. . Post-retirement lifestyle directly impacts your financial and overall well-being. While you might be free of liabilities like loan payments/ EMIs, there might be an additional cost of medical expenses in post-retirement. Moreover, this is the time to fulfil your hobbies, travel and make plans with friends and family. And to make them successful, you must account these expenses beforehand while making the plan in your working years.
- Perceive tax efficiency
Planning your taxes is very important, or else a big chunk of your income will be spurned out as taxes. A well-documented retirement plan drawn with the help of a financial advisor or an accountant would be the wisest way to tackle the tax cuts. Make sure to take into consideration tax benefits available for senior citizens and benefits over government-sponsored pension schemes. Seeking assistance from an expert would save your efforts as well as money.
- Address post-retirement risks
Unexpected expenses & reduced income can put a retirement plan into jeopardy. It is important to take into account some common post-retirement risks such as a terminal or temporary illness, death of a close one, sudden changes in public policies and more. Most of the population doesn’t often think about the potential risks that they have to come across once they retire. On average, one should plan for at least 25 years of retired life, which eventually helps you deal with any potential risks during post-retirement.