Retirement planning: How to plan regular income, investments, healthcare expenses, estate planning

After putting in years of work and toil, comes the golden age of a retired life. However, the fact that we are no more earning a salary or income is hard to digest. So, when it comes to personal finance, it is important that we prepare for retired life well in advance. Here are some aspects that one should consider.

Regular income
You can invest your retirement corpus in such a way that it provides a regular monthly income. For this, you can consider investments like annuities, National Pension Scheme, Senior Citizens’ Savings Scheme, dividend payout plans of mutual funds, or a systematic withdrawal plan from a mutual fund investment.

Investments
After providing for regular income, plan for investments that may be held for a longer term to fund the older phase of retired life. You should have a balanced approach towards asset allocation and avoid exposure in high-risk assets like equities.

Healthcare
Your regular expenses may go down compared to while you were working, such as school fees, eating out, transport, etc. However, expenses on health may go up. So, ensure that you have adequate health insurance and specific investments to cover medical needs.

Estate planning

This is important as it helps to ensure that your assets are distributed in accordance with your wishes, while minimising on taxes and other expenses. It aims to provide for your loved ones in the event of your death by making a will, creating a trust, or making a gift deed.:: Points to note

• Those who own a home can consider reverse mortgage as an option for regular income.
• A financial adviser can help you assess your monetary situation, determine your goals and create a customised plan to manage your finances after retirement.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.