How to factor medical expenses into the retirement plan

Healthcare costs form a major part of the expenses for a person. They are additional expenses that rise with age. Medical inflation is said to be 25% per annum against normal inflation of 6-8% per annum.Only the salaried class in India t have social security benefits. Most indians do not have a well planned social security, pension or long term health-care plan in place, unlike most of the other developed countries And unless one works in a public sector organisation, a person cannot depend on the employer for lifelong health care benefits. In fact, the group insurance also ceases on retirement, from company benefits.

Can you fund your retirement through rental income?

Rental Income is quite a favourite as a retirement planning tool and used by many. People generally buy a second property primarily for investment and rental income purpose. In fact rental properties offer the rare opportunity to generate extra cash in post-work life.

However one needs an inflation adjusted income to see themselves through retirement

How many more years should you work?

Expert’s advice to start planning for retirement at an early age, however, what’s the right age for retirement? The protocol laid by the constitution or a VRS [Voluntarily Enforced Scheme] enforced [at times] by semi-government and private firms? Looking for answers?. Let’s get started –

Post Retirement Investment Strategies

Mr. and Mrs. Innani after a year of retirement were shocked to see a notice of not filling the tax sheet on time. The duo was under the impression that once you are retired and you are not earning, you do not need to pay tax. Are you the one under the same impression?

Then, let’s dive in to see what investment strategies could help you to enjoy your retirement peacefully.

How much corpus do I need to retire peacefully?

Retirement planning is a complex process because of uncertainty associated with the factors that impact it. For instance, job security, growth of economy, inflation, returns from investments, and rising medical expenses are some of the factors that impact financial planning for retirement.

The golden rule of retirement planning is that there is never enough. You have to incur medical expenses, face the rising inflation, and many other uncertainties that require money.

Pros and Cons for using insurance for Retirement

Retirement planning is the important task of deciding how you will live once you retire. It involves the consideration of a number of factors .A few are mentioned below:

a) At what age you plan to retire.
b) How much money you will need to cover living expenses.
c) The things you plan to do once you have retired.
d) Where your money will come from?

Why should you start retirement planning early

We all earn and save to have a bright future, but we never think of saving exclusively for our retirement! Is retirement not our future? As per a report, 58 % of Indians do not know what their retirement income would look like. One of the reasons cited for disinclination is a lack of understanding of long-term financial planning.

Our current post will dwell into why retirement planning is important and starting early is crucial! Let’s dive in –

Reverse Mortgage – how it works

How does a Reverse Mortgage work ?

The reverse mortgage, introduced by the Union Government in 2007, is an answer to financial  issues faced by senior citizens, giving them a life of dignity. For senior citizens, who have a lack of regular income or financial support , this could lead to a financial crisis.  In simple terms, a reverse mortgage is the “opposite” of a conventional home loan. A reverse mortgage enables a senior citizen to receive a regular stream of income from a lender (a bank or a financial institution) against the mortgage of his home. The borrower (i.e. the individual pledging the property), continues to reside in the property till the end of his life and receives a periodic payment on it.

National Pension Scheme – Analysis

The National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme. The NPS has been designed to enable systematic savings during the subscriber’s working life and is an attempt towards finding a sustainable solution to provide adequate retirement income to every citizen of India.

Protected: Systematic Withdrawal Option: A tax efficient way to ease into retirement.

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