People often wonder what’s the best procedure for retirement planning and how can it be achieved effortlessly. You might already realise the importance of retirement planning but might need help to attain a sizeable retirement corpus. This article will provide an insight four things that an individual can do in order to ensure that their retirement is stress-free.
4 things that make retirement stress-free
- Time it Right
Retiring early might sound like a good idea to get rid of all the stress and struggles of your job for good, but if you decide to retire too early, you might end up stressing about your wealth or even have to return to a full-time job. Retiring too early could even be bad for your health. Less work for your brain and lower activity levels can cause several health concerns, too. Run the numbers to understand when it is most advantageous to retire and hang in until that period to ensure a stress-free retirement.
- Strategise your variable and fixed income
Building a financial portfolio comprising of numerous debt products of various durations will help you gather overall better growth rates, after retirement. One should ensure that their post-retirement part of your retirement corpus must go to a place that would generate a fixed monthly income for you. Investment products such as Senior Citizens Savings Schemes (SCSS), liquid funds, Post Office Monthly Income Schemes (POMIS) can help you to build a sizeable retirement corpus.
- Make sure to keep debt at bay
Focus on paying your consumer debt right now to avoid stress later. This will help you to head into retirement with fewer money-related stress and lesser bills. Existing debt obligations might also make it difficult to access cash in case of an emergency. What’s more, there is a huge risk of the amount of pension reducing or ceasing in case of the death of the primary pensioner, making it more difficult to service the debt.If you are planning on downsizing, start simplifying your life. If you simplify your life right now and get rid of debt and all the unnecessary expenditures, it can help you have a stress-free retirement later.
- Emphasis on saving
It’s never too late to start saving for a significant retirement corpus and every rupee you save today would help you to contribute to a happy, stress-free life later. Diversify your financial investments and make sure to ensure that you set aside a part of your income and you’ll be able to reap the benefits later. If you are already saving, consider increasing your contributions; even a small boost can pay off over the years when you reach your retirement age.
The above thumb rules can make your retired life smooth and easy. However, it might not cover everything. You can seek the help of a financial planning expert to guide you through your retirement planning.Realise the importance of saving early on your retirement corpus. Saving early will significantly add to your corpus, thanks to the power of compounding. Happy investing!