Life always travel from working life to retirement. Its on our hand to prepare careful financial planning and decision-making. For that you need to give time to prepare planning from today. Getting close to retirement? Don’t wait until the last hours to get your finances in order. Give yourself plenty of time to be prepare. Followings are some point which may help to prepare painless and tension free retirement life.
1. Convert some percent of your income into savings
Make careful research on your source of income and set savings so you have an income from the first day you retire. Options include Recurring Deposits, Annuity Plans from LIC or other insurance companies, PPF account etc. Details of each will be posted as soon as possible on this site. Also you can ask your financial advisor for planning of you current income.
2. Pay off your All debts
Make your all debt to zero level before you retire or make provision to pay off all the debt after retirement. Debts may be home loan, personal loan, vehicle loan, business loan etc.
3. Calculate your monthly requirement after retirement
Estimate how much monthly income you’ll require from your savings, government benefits and any pensions. So you can plan percentage of your income to be saved in different saving options.
4. Review your insurance needs based on current condition
Will you be alone after retirement? Will you have any dependent after retirement? Is there any body upon whom you may liable? Is there any debt will also be there after retirement?
If you does not have debts and dependents, you may not need as much life insurance coverage. But you might have health problems, so you may have to consider critical illness insurance and or long-term care insurance. Are you covered in case you or your spouse develop long term health issues or have other emergency health problems? Unexpected health care costs can tense you when you’re on a fixed income.
5. Review your will and powers of attorney
If you’re about to retire you must have to review your will, it might need to be changed or updated depending on last moments before retirement. Well defined and wording of will in proper manner means your estate is distributed as you intend it. it will helpful to your family by avoiding unnecessary legal and administrative burden to your family after you.
If you does not prepare valid will, a court will appoint someone to distribute the assets according to a formula set out in provincial estate and family laws.
You must also make sure that you appointed some one on which you can trust, have a power of attorney, a legal document to make financial and other decisions for you when you can’t make them yourself.