Retirement is a stage in life when you have ample time for yourself. For a lot of people life actually begins at 60. At the same time, there are concerns about age-related illnesses. And, it becomes difficult to manage high medical expenses without a steady income. This is why planning at an early age is essential to ensure that retired life is spent without any financial worries.
Buying a Senior Citizen Health Insurance cover for your aging parents is one way to secure their future. To meet the specific needs of older adults, these insurance plans come with higher sum insured and a range of benefits.
When it comes to making yourself financially strong during retirement years, there are a host of responsibilities you should fulfil:
Retirement planning helps you to stay financially independent in an age when there is no steady income in the form of salary. Develop the habit of saving now. The earlier you start, the higher the benefits you will have. If it is possible for you, think about augmenting your savings as your income increases. It is easier to save when you are younger compared to a later stage when you would have a family to care of.
However, you still have not missed the bus even if you are starting in your 40s or 50s. Yet, you must focus on building huge savings rather than ‘small but regular investments’.
Choose investment options
Select investment options that are reliable and offer tax savings along with good returns in the long run. Investing in a pension plan is a good idea. In addition, if your employer offers you savings options like Employee Provident Fund (EPF), then that would help in securing your future. You would have to consider a number of investment options like Systematic Investment Plan (SIP) and Public Provident Fund (PPF); and opt for more than one savings option that suits your needs in a better way.
Build a Retirement Corpus
The sum you need at the time of retirement will completely depend on your individual requirements and lifestyle factors. Define a specified percentage of your pre-retirement income; let’s say 60%, for building the retirement corpus. This is important to meet all your major expenses in the future. You must to take into account certain factors like cost of living, inflation rate and your estimated expenses.
Buy Insurance Cover
Healthcare costs are rising steadily. So it becomes necessary to purchase a health insurance policy. This will provide you financial stability not only for the immediate future but also for the long term. Make sure you increase your coverage periodically so that you stay financially protected against unforeseen medical expenses. Having a health cover will take care of your healthcare costs and reduce the load on your savings. In addition, one should also buy life insurance plan to secure the future of dependants.
The golden rule one should follow is to ‘start investment early’. This is important in order to build a huge savings for the future and prevent the chances of any financial difficulty that may come in the way of a comfortable life journey post retirement.
Choose ‘Care Senior’ by Care Health Insurance (Formerly Religare Health Insurance) which is a senior citizen health insurance policy to ensure the financial security of your aging parents.