5 things to do before you retire!

By | July 26, 2013

Planning for retirement and doing something about it is something that most youth and elders detest. For the youth there is no incentive to plan for something that will come up 35 years later. For the elders, the fear that they may not have enough money in their last phase of life prevents them for doing a deeper analysis and action after that.

 

Retirement Planning is not only about money

There is more to retirement planning than money. Some of the key things to be planned which actually make the planning more interesting is to consider:

  1. How will you spend your time?
  2. Places to visit
  3. Tackling health related issues
  4. Sharing the wealth created
  5. And finally planning for income (of course)

In fact, most people just think of the last one without considering the first four. This leads to confusion and fear.

 

Tips for Retirement Planning

 

Plan Time: Many retired people are lost because they have not planned for the question “What next?” It is important to find some activity that will fill the 8 to 12 hours that one has spent at work. This is not only for the breadwinner but also for the homemaker. What will you do to manage a new person with whom you need to share 8 to 12 hours, suddenly?

a. Think Social Activities: There are so many activities that one may have thought of doing to the society and not done due to want of time or due to other priorities. Post retirement one can take them all with a vengeance. This not only a time filler but also a very good way to keep the brain stimulated.

b. Think Hobbies: Apart from filling time and keeping one mentally agile, hobbies also add to your skill sets. Taking up a new hobby and joining a hobby club is a great way to manage retired life.

 

2. Plan Travel: Except for the envied few who had great travel oriented jobs, most would have sacrificed their travel plans for their career. And don’t grow too envious because those jet flyers on the job are also cribbing because they had to travel on such tight schedules that they hardly got to see anything worthwhile travelling on the job. Retirement is a wonder time to plan for all those missed countries and places to visit.

 

3. Plan Health: Health insurance is very handy when you are retired. But if this is planned on the brink of retirement not only is the cost too high, but diseases may already have set in. This means that the pre-existing diseases will not be paid for by the insurance for upto 4 years after taking the plan.

 

 

4. Write a Will: Writing a will to efficiently pass the wealth created to our loved ones is very important. However in India, this is a commonly absent practice. Even some of the richest persons in India have not taken up this practice (think Dhirubhai Ambani). This leads to costly and lengthy process of passing our hard earned wealth to our loved ones.

 

5. Plan Finances for Regular Income: Though this aspect alone can be written in whole books, the basic idea can be summed up with a few point:

a. Do not to lock up funds in illiquid assets without cash flow – avoid buying a large house for you to stay and prefer a house from which you can get a rental income.

b. Do not to give away wealth too soon – having cash does not mean that you can give it away to your sons and daughters and brothers and sisters or to a temple. Give it to them through your will so that they get your wealth, and at the same time, the money works for you when you are around.

c. Do not experiment – To experiment with retirement funds in the stock market and commodities or a new business post retirement is highly risky. You may not have the time or energy to earn the money lost (if lost).

 

Retirement Planning:

Retired life is supposed to be fun filled and peaceful. But today we find more old age destitute homes popping up than schools, indicating a trend towards lack of retirement planning. The above tips will help those in their prime of life and those near retirement to plan for a comfortable retired life.

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28 thoughts on “5 things to do before you retire!

  1. swapan kumar ghosh

    Good article and very important also.However, if it would have been little more details in another two pages, the same would have been better.Like how to write will and what is to be done as per law to regularise it.
    In nay case , once again I wish to comment that such topic is interesting for most of the people, as they have retirement except may be politicians.

    Reply
  2. Balkrishna Paliwal

    Really a very valuable piece of advice. I was lucky to have some of the hints given to me by my close friends and well-wishers well in time. As a result I consider myself to be better placed today. Even my children helped me in taking proper decisions at crucial times when I was not sure as to what should I do.

    Reply
  3. Johnsonsjesussons

    For those who were in a good job with appreciable earning, the retired life may be easy going for the fact there is the financial comfortable cushion for their future life. For others who were not earning that much appreciable and were carrying finacnial burden of housing, daugthers/sons marriage, health related issues, etc.etc., the retired life may naturally be of complications,and fear.

    It is felt in this context that our Governmental machinery may sort out something for the retired one who may have to lead an unhappy routine. There may be something of a meeting point each one helping the other (as said developing a hobby), and doing some kind of gainful job on the go.

    Reply
  4. Smita Vaity

    good ideas and suggestions given to help ourself plan for our retirement

    Reply
  5. Krishan Kumar Sharma

    it is really a good advice so that we can prepare for our retirment life from today onwards not at the time of retirment. Thank u very much sir.

    Reply
  6. R VENKATESWARAN

    This is a very useful tip for many government servants, as MNCs take care of their staff in a better way for their retiring staff. I wish this goes to all.

    Reply
  7. Murli

    This article is real good. Never thought of the first 4 points.

    Reply
  8. Mohankumar.T

    Retirement with no troubles to the kith and kin is what to be done.Invest wisely so that you can have the same lifestyle while working and hoard a bit for unforseen circumstances.Money and property should pass on to your spouce on your demise and later on her/his death it should be given to others.If you have the inclination and health nothing like living in a gated community with trips off and on down the memory lane.Think of visiting the old school ,friends you havenot seen for ages. It is a lovely feeling to see old people getting adjusted to their new life after retirement.

    Reply
  9. Joe Ferns

    Very good and helpfull advice wish there was something more detailed for postretirement If you have a lumpsum what % to invest where etc for safety and returns.

    Reply
  10. govind sharma

    We are living with a contradictory lifestyle.We are verymuch worried for the children,their education and careerand spend all that we have time,money and energy with a hope for the good return after retirement butthe time has taught that returns are not assuredthat added more worries for after retirement plan.these plannings are after thoughts to assure a secured retirement life.but this is like the savings or management of leftovers,anyway let us do what we can do.Can we over wright the script written long back.

    Reply
  11. raghu

    pretty good algaritm for retirement planning.
    may be one can assign weightage to each factor & Figure merit of planning

    Reply
  12. gulab

    very thought provoking and must read article specially for 5hose who have crossed fifty.

    Reply
  13. K S SHAH

    LIFE IS VERY UNCERTAIN AND THIS ARTICLE IS VERY USEFUL WHO ARE ON THE VERGE OF RETIRMENT OR AGE BET.45 – 55YRS.TO PLAN OUR SAVINGS AT MOST SECURED INSTITUTES TO AVAIL THE SAFE RETURNS TO LIVE AS PER YR DESIER STANDARD TO ENJOY WITH FAMILY.REGARDING WILL IT'S GOOD TO MAKE AS PER OUR DESIRE SO THAT IT CAN BE USEFUL TO OUR FAMILY MEMBERS LATER WITHOUT ANY LEGAL COMPLICATIONS TO WISH OUR GENERATION TO ENJOY IT.

    Reply
  14. cdr r v singh (retd)

    in fact, a very good article, worth pondering by youth ,as well as, those nearing their superannuation….glitter of money and too much desire for it, keeps us blinded all through our life and a very few of us hardly think about the first four points in retirement planning as listed by the auther of the article….

    Reply
  15. Vijay1945

    Good and useful advice given. It is really surprising how little post-retirement planning is done by Indians. Hope your article makes them aware.

    Reply
    1. RAMESHNARAYANAPPA

      Thanks for giving very good article reg the after retirement.

      Regards,
      Ramesh.N

      Reply
  16. Srinivasan

    Spending time usefully is more important post retirement. Those who engage in another job may not have this need but still it could be for few more years only. It is essential one gets to know the basics of computer use as to email access, web surfing etc., so that they continue to be in touch with their good friends and relatives and also be updated with the latest information around the world without lying in a couch watching the idiot box and sleeping during day time and increase their weight.

    Reply
  17. SANTOKHSINGH KHURANA

    IT IS A GOOD ADVICE FOR THOSE WHO ARE ON THE VERGE OF RETIREMENT. WHAT ABOUT THOSE WHO ARE ALREADY RETIRED AND IN THE AGE GROUP OF SAY 65-70. WHAT TYPE OF PLANNING U WILL SUGGEST FOR SUCH TYPE OF PEOPLE IN THIS AGE GROUP. WHAT IS THE RIGHT AGE TO WRITE THE WILL..

    Reply

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