6 Things to Do, To Improve Your Retirement Planning

Once you retire, you will need to rely on an alternate source of income to ensure that your financial needs are taken care of. You will also have to adjust to a different kind of lifestyle, since you will have more time in your hands. With a little planning, you can ensure that your retirement years are secure and enjoyable.

Here are 6 things that you can do to improve your retirement plan.

1. Outline goals and plan how you will achieve them

Like any other financial goal, it is important to thoroughly plan your retirement period, outlining your needs and sources of provision. This helps you work towards taking care of the same in the working years you have left. Instead of being vague and thinking about it, write down your retirement goals and plans so you can think of ways to meet them.

2. Discover employment benefits that can help you before you retire

Many a times, you may forget or ignore your employee benefits with a focus on your monthly salary or getting that annual bonus. It is possible that you haven’t been using your Mediclaim benefits or PF benefits. Start using the same. In some companies you can even claim medical bills up to 74% for your spouse, parents or kids.

Use these benefits to save money and invest saved funds towards your retirement. Make the most of PF benefits too. You may even find yourself working at a company that offers shares at cheaper rates to employees or offers payment for overtime if you are able to accommodate the same in your schedule. Whatever the employee benefits, make the most of them while you’re still working in that company. Talk to the HR if you are unaware of the employee benefits and add to your savings kitty.

3. Create a budget

In order to be well prepared for your retirement years, it is important to have a budget in hand based on your present necessary and fluctuating expenses. Consider your monthly fixed expenses and figure out an average total. See where you are splurging and identify the scope of saving a little more. With a budget in hand, you can save more towards your retirement as every penny you save can be invested to ensure your retirement years are comfortable.

4. Make the right investments

While saving is essential, investing part of your savings is equally important. Investments allow your savings to receive an opportunity to grow. If retirement is a long way away for you, you can invest in riskier options; however, if you are close to retirement, then take stock on how much you want to let market forces determine your earnings.

Now is the time you can invest in safer options that give you guaranteed returns on maturity. FD’s, for example, are a great option and those offered by NBFCs earn a higher rate of interest than banks. Bajaj Finance’s Fixed Deposit, for instance, offers you high interest rates of up to 8.20% and even have higher interest on renewal. These are known to be an ideal investment option for a retired person as senior citizen FD allows you to invest at least 0.35% higher rate of interest.

5. Find a source of emotional satisfaction

After working for many years, your job becomes the main priority around which your entire schedule revolves. After retirement, the sudden change in your routine may sometimes make you feel emotionally dissatisfied. So, review your passions to see what hobby or part-time job you want to pursue.

For example, you can teach your neighbourhood kids about your favourite subject or indulge your hobby of baking or gardening. Think of activities you would like to be involved in after you retire so that you feel content, active and involved during your golden years.

6. Stay prepared to adapt to changing times

It is possible that you look to your parents and see how much the world that changed in their lifetime. With technology transforming simple tasks, prepare yourself to experience displacement during your retirement years. You can easily overcome this by regularly updating yourself with market trends, technological innovations, and news apart from banking norms and tax regulations. This will ensure that you can be independent and secure even after you retire.

Use these 6 tips to make the most of your remaining working years and plan a successful and secure retirement for yourself.