Although the financial experts suggest that you must start your retirement planning at a young age, it is never too late. When you start early, you can leverage the time advantage to build a large corps that you can use in the future.
If you are nearing or have already reached 50 years of age and wish to secure your retirement financially, you can still do that. With a bit of research and planning, you can manage your funds and invest in some promising pension plans.
Retirement Planning is crucial since it gives you the freedom to live life on your terms and be financially independent, even after retirement. A pension plan that offers monthly income can support your monthly expenses and prove vital in emergencies.
How to Plan Your Retirement When Starting Late?
The following steps can help you in an effective retirement plan, even when you are starting late.
Analyse Existing Financials
Look at your existing financial obligations, such as higher studies or the marriage of a child and analyse how much you need to put aside for that. Also, examine your current investments to understand where exactly you stand. There may be investments that don’t seem profitable, or your portfolio may have investments with a high-risk profile. You can plan to shift such assets to a low-risk retirement or pension plan that provides guaranteed returns.
Estimation of Corpus
Next comes the assessment of the corpus you are looking to build up by the time you retire. It is vital to be realistic in your estimation since you have started late. Depending upon how much money you can spare after addressing your crucial needs, you can arrive at an estimate. An online retirement corpus calculator can also help you with that.
Get Rid of all the debts/unnecessary expenditures
It is crucial to get rid of most of your debts to plan to invest for your retirement years. Since you are starting late, it is equally important to cut down on unnecessary expenses and direct them towards building your retirement corpus.
Invest in a Suitable Pension Fund
Kotak Life Insurance offers different types of pension funds to suit your requirements, such as traditional funds, immediate annuity, life annuity, etc. Since you are investing late, you might like to go for single premium schemes such as immediate annuity plans that offer immediate assistance with lifetime income options.
Even traditional plans are great if investing monthly is suitable for you. Get in touch with a professional advisor to select the right pension fund based on your objectives and investment profile.
As the saying goes, “it is always better to be late than to arrive ugly”, planning a corpus for your retirement and working to achieve it is always better than no plan at all. Hence, even if you are nearing 50, an excellent financial strategy and investment with a good pension fund can help you build a decent retirement corpus.
