Retirement should be like taking a long vacation. It’s a phase when you can finally put your feet up and enjoy time with friends and family. You can plan long lunches, travel to see different parts of the world and pursue hobbies. To enjoy your retired life, you need to prepare for it today. So, here are some golden rules to enjoy your golden years.
Rules for Retirement Planning
Create your bucket list:
You’re frightfully busy today. Prepare a list of all the things you would love to do once you have time on your hands. The list could range from taking your spouse to a magical destination like Paris or Las Vegas to teaching less privileged kids or watching the Cirque du Soleil with your grandchildren. Making this list will give you an idea of the funds you need to begin saving today to accomplish everything you dream of.
Protect your family:
Many people don’t consider retirement insurance plans. They think of protecting their family’s financial future while they are earning. After all, they won’t be the breadwinners post retirement. However, when planning for retirement money, it’s important to consider your family and their welfare. A pension policy with a life cover is an effective way of protecting your own and your family’s future.
Take inflation into account:
You wouldn’t want your lifestyle to deteriorate after you’re retired. You want to protect your family from any hardship, while also contributing to their dreams. For this, retirement planning must take inflation into account. Things become increasingly expensive with time. Since inflation will reduce the purchasing power of retirement money, your savings today and the insurance cover you choose must consider inflation and be increased accordingly.
Start buying a house:
Having a roof over your head during your golden years can be highly reassuring. This also acts as a safety net for your family, even after you are gone. A home gives a sense of security and stability, which are important during your retired life.
You have a heap of expenses and it seems very difficult to save money, right? Don’t worry, as there are pension policy and retirement insurance plans that offer tax saving. Depending on the plan you choose and the premium amount, you may be eligible for deducting as much as Rs.1.5 lakhs from your taxable income, under Section 80C of the Income Tax Act. You can put away this money for enjoying during your golden years, while the plan protects the financial future of your family.