The post-retirement period is the best time to pursue many pending life goals. Many people aim to plan vacations, start a hobby, plan their children’s weddings, or get back to studies. This is also a time when many health complications might arise. Medical bills can drain off life savings.
So, to ensure a comfortable old age, you need to start planning sooner. From different types of savings account to insurance policies, there are many aspects of financial planning. Let’s see some ways to go about it.
Have a Senior Savings Account
The first step is to open an online savings account with the best interest rates. This will ensure that your funds are stored safely, and you have access to them all the time. A savings account is the best way to ensure financial independence. You can even open a joint account with your spouse to have easy access to pooled funds. Couples can split utility bills and EMI payments.
For seniors who are opening a savings account for the first time, an online account opening process will be further beneficial. Additionally, try to find senior citizen savings account for added benefits like:
- Lifetime free health benefits
- Free doorstep banking
- Preferential rates on fixed and recurring deposits
- Free personal accident coverage
- Priority treatment at bank branches
Look at Investment Options
Apart from saving your hard-earned money, you also need to think of ways to grow it. Depending on your risk appetite, start looking into investment options. Let’s explore a few of them:
- Term Insurance– Can provide comprehensive financial protection to your family and even provide death and critical illness benefits. A monthly income plan in term insurance further provides financial assistance to your nominee after your death.
- Market Linked Insurance Plans- Invest your money in various market funds based on your risk profile. Along with the security of life cover, Unit Linked Insurance Plans (ULIPs) can also help in wealth creation. Also, you can avail of tax benefits.
- Mutual Funds-If you already have a term insurance plan, you can think about mutual funds. You can invest your money in diverse markets to grow your wealth. Based on your long-term, medium-term, or short-term goals you can choose funds accordingly.
Plan for Health Insurance
Health insurance can take care of your sudden medical emergencies, including hospitalization and surgeries. Considering the rising healthcare costs in India, this could be a practical solution.
Consider health insurance after looking at the claim process, the list of network hospitals, coverage amount, tax advantages, and benefits (if any) for terminal illness treatment. Some plans can offer lump sum benefits on the diagnosis of cancer. You can also avail a monthly income plan to take care of your medical bills.
Planning for post-retirement life needs careful evaluation of your age, current income, future goals, and the average inflation rate. Use a financial goal calculator to determine an accurate figure. Compare various types of savings accounts and investment plans before making a decision.
