How to enjoy smooth retirement despite inflation
Table of Content
Planning your future is a subject which is better said than done. As per a survey, nine* out of ten Indians seem to be under-prepared or unprepared when they reach retirement. Retirement does not come to them naturally; it just hits them hard as they do not have any alternative source of income to keep up the lifestyle and sustain.
Be rest assured, here are four ways to prepare for retirement in advance
Suitable mix of equities and debt instruments
Never put all your eggs in one basket. The Thumb rule to diversification suggests suitable allocation to your debt portfolio depending on your age. As you age, the allocation to equities reduces, thereby, reducing the portfolio risk and focusing more on sustainable consistent cash flows.
The rule suggests that your age should be subtracted from 100, the output there should be the allocation percent to equities and the balance in debt instruments. For example, if you are 40 years old, 100 minus 40 = 60% can be allocated to equities and as you move closer to retirement, the portfolio rebalancing will lead to higher share in debt instruments.
Invest in a retirement plan
The safest and the simplest way is to invest in a retirement plan when you have a few years ahead of you. One such plan is offered by HDFC Life is the HDFC Life Pension Guaranteed Plan. The safety net at the time of retirement is having a regular cash flow when your income stops but the expenses continue. HDFC Life’s Pension Guaranteed Plan offers lifelong regular income post retirement for life.
Create regular stream of cashflow/income
All your life, there is a balance between your income and expenses. As your income increases, your standard of living also increases and hence, you are accustomed to a certain lifestyle. At the time of retirement, suddenly, the balance is distorted because income stops but the expense outflow continues.
It is important to invest early on to create a regular stream of income for your daily needs, investments, expenses as well as leisure activities, post retirement as well.
The regular stream could be in the form of regular interest income, dividend income, rental income or any other source of passive income.
Ensure that you have a health plan
You may not be in your prime health condition in your sunset years. This may be your biggest expense when you start getting older. Medical and hospital expenses can take a toll on your savings especially in your old age. Health insurance plans are cheaper when bought earlier in life. So, it is very important to purchase a health plan as early as possible so as to cover for the hefty cash outflows for medical contingencies. HDFC Life offers the Click 2 Protect Health Plan, a life and health insurance plan that gives your family all-round protection.
Conclusion
HDFC Life offers a range of exclusive and comprehensive retirement plans and pension schemes that are directed towards ensuring your financial independence even after you retire.
ARN: ED/08/22/28529
Term Plan Articles
Investment Articles
Savings Articles
Life Insurance Articles
Tax Articles
Retirement Articles
ULIP Articles
Subscribe to get the latest articles directly in your inbox
Health Plans Articles
Child Plans Articles
Popular Calculators
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
Click 2 Protect Health (UIN: 101Y115V05) is a Term & Health Combo Plan. The risks of this product are distinct and are accepted by respective Companies. For more details on risk factors, associated terms and conditions and exclusions, please read sales brochure carefully before concluding a sale.
HDFC Life Pension Guaranteed Plan (UIN: 101N118V11) is a single premium non-participating and non-linked annuity plan. For more details on risk factors, associated terms and conditions and exclusions, please read sales brochure carefully before concluding a sale.
Popular Searches
- Term Insurance Calculator
- Investment Plans
- Investment Calculator
- Investment for Beginners
- Best Short Term Investments
- Best Long Term Investments
- 5 year Investment Plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- what is term insurance
- Ulip vs SIP
- tax planning for salaried employees
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Term Insurance for Housewife
- Money Back Policy
- 1 Crore Term Insurance
- life Insurance policy
- NPS Calculator
- Savings Calculator
- life Insurance
- Gratuity Calculator
- Zero Cost Term Insurance
- critical illness insurance
- itc claim
- deductions under 80C
- section 80d
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed
- Benefits of Health Insurance
- Health Insurance for Senior Citizens
- Health Insurance for NRI
- Best Term Insurance Plan for 1 Crore
- personal accident insurance
- Annuity Calculator