- Invest in a retirement plan as soon as you can
- Find ways to supplement income
- Be emergency-ready with right insurance
Retirement ushers in a welcome break from the daily grind of a 9 to 5 job. The hitch, however, is the lack of a salary. To live the same lifestyle during retirement would require a substantial corpus to last your entire second-inning. Having inadequate funds could mean compromises and cutting expenses. Here are some tips on how to make your retirement corpus last a lifetime.
Start investing early
Retirement may seem far off around 20s and30s. But you must understand that to build a large corpus, starting early is the key. A proper retirement plan in place early in your career can ease your worries about the future. Set various financial goals and get started with investing now. Begin small if you do not have the funds to invest big. As you move up the ladder and your income increases, you can increase your investments. With systematic and disciplined investing, you will benefit from compounding.
Consider health insurance
Without a health insurance, a sudden critical illness could wipe out your savings in the blink of an eye, affecting your future financial goals. Hence, do not underestimate the importance of a health insurance.
Additionally, buy a critical illness plan. With the rise in stress levels and sedentary lifestyle, critical illnesses are no longer rare. Affecting almost all sections of society, these ailments may affect any person at any time without warning.
In such a scenario, it is imperative to have the financial muscle to combat the ailment. A critical illness plan is a lifesaver in such situations that would help you overcome hard times with an optimal level of preparedness.
Opt for plans that give pay-out during retirement
Wouldn’t it be nice if you could pay regularly to a plan during your working life and get pay-outs after retirement? With Exide Life Income Advantage Plan you are required to pay premiums for the first half of the policy term and get regular income during the second half of the term, once a year.
Find ways to generate income
Retirement is bliss; no stress of commuting, long hours at work or working on pressured deadlines. However, you may want to continue working to put your skills to use. In this case, consider a consultancy or a freelance option with the flexibility of time. Pursue your passion and make it a profession if you can. Become an advisor and help organisations or individuals with your valuable experience. Learning a skill or pursuing a hobby that can generate income is also a useful way of keeping yourself busy.
This additional income can take care of your daily expenses while you maintain your retirement corpus intact.
Risk vs. returns vs. time
To ensure that your corpus lasts long, divide your retirement in two phases – first 10 years of retirement and post-10 years. In the first period, you could have a portion of your portfolio invested in a high-return vehicle. This will ensure the value of your corpus grows to battle inflation. Once you reach the second phase, you could opt for an immediate annuity plan to start receiving monthly income.
Exide Life Insurance offers retirement and pension plans that can help you create a retirement corpus to last a lifetime. Visit our website to know more and choose the right retirement plan for you.