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Personal Finance

Prepare for retirement – it is not the end of your career

After many years serving the country, finally one would come across a time to call it a day. It is not happening all in a sudden; but you were seeing it approaching for some time at least. And have you made the preparations that ensure you a smooth, hassle free life after retirement? If you are not satisfied with the state pension you get every month after retirement, then by the time you could see the retirement age appearing in the horizon in your path, give a serious thought into retirement plans that could assure you a decent income in the post-retirement period so as to have the same quality of life that you enjoys today.

Retirement is not the end of your career. But it should be viewed as just a career shift or a new job. But one might need some sort of a brain rigging to get the ideas tumbling out. Plan early so as to have a comfortable retirement without any financial crunch. Don’t give anything to chance. In any case, it is the choice that determines the destiny.

Have an idea about what income you should have after retirement, the place to live, and the life style changes you are prepared to make. Also take in to account other financial commitments like paying off the mortgage or whether one need to financially support his/her children through university. These factors should form the basis of the action plan – Post Retirement.

It will be intelligent from your part to hire the services of a financial expert to analyze the post-retirement financial scenario. Generally, at the retirement time, pensions, savings and investments, and Social Security benefits would be the regular sources of income. There could be pension from the jobs you flitted around during your younger days and left unchecked later on. Also there could be income in the form of rent of property or room and dividends from stocks and shares. A financial adviser can help one get through the maze rather than rigging your brain with a draining input of numbers.

Post retirement period can be made colorful with various activities – going back to school or pursuing a hobby or starting a business that suits your budget and taste. That is, the days after retirement need not be of less activity or no action. But it can be worked out to be ‘working retirement’. In making investments, but be a bit careful in not making any mistakes that could result in lose of money. Also, make it a point to keep an ‘emergency fund’ at your disposal. Experts say it should ideally between six and 10 months worth of living expenses to be of real use in an emergency.

The life after retirement has some bearing on your level of planning that one should ideally envisage some time before the time of retirement. If well planned and organized, you can have an active, hassle less and happy post-retirement days. Retirement and old age are inevitable elements that one would encounter in the life’s journey. Let us take it on with a fair amount of preparation than it taking it by surprise.