A report by the Reserve Bank of India in 2017 revealed that 77% of Indians don’t save for their retirement, says an article in Business Standard. This makes them financially dependent on their children in their old age. The best way to ensure financial and social security is to plan for your retirement as early as possible.
The best annuity plans in India offer features such as regular income for life, fixed annuity, option to add a family member, frequency options for annuity payout and a wide range of riders. However, before choosing an annuity policy, here are some steps to follow to plan your retirement.
1. When is the right time to start?
The only right time to start planning for retirement is now! You need to think about how you can minimize expenses, increase savings and can gain benefits of financial security in old age. Whether you just got your first job, got married or had your first child, it’s never too early to start planning for retirement. Planning your future and choosing the best annuity plan in India keeps you prepared for life’s uncertainties.
2. Assessing your resources
Everybody knows how much they earn every month and how much they have in their bank accounts. Gold and land are some essential assets that can help you after your retirement. Moreover, there are some non-conventional assets, such as your antique collections of plates, cars, watches, etc., that help you raise fund. Many skills, such as dancing, singing or handicrafts, can also be used to earn some extra bucks after your retirement.
3. Understanding your expenses
Once you know your assets, evaluate your spending and required retirement budget. Track your monthly expenses and find out ways to cut them down. Most people don’t know where their money is going and they spend the same amount on travel and entertainment after their retirement, says an article in Consumer Reports. Experts suggest that you can save by adopting simple methods such as growing your own vegetables, decreasing the number of cable channels and repaying your loans on time.
4. Evaluate your medical situation
Good health can save you from frequent expenditure after retirement. Eating healthy and exercising regularly can help you in the longer run. Schedule regular check-ups and preventive tests, from regular teeth cleaning to heart check-ups, will help you reduce the risk of unpredictable medical conditions after retirement, says an article on AARP Real Possibilities. Playing brain games and solving various puzzles will ensure your mental health in old age.
5. Determine your social security
The most wonderful feeling is to be financially independent. When you have peace of mind that you will be able to rise above misfortunate, you gain peace of mind. The earlier you start, the greater can be your savings. And, if you like, you can also choose an immediate annuity.