Who would have thought a couple of decades ago that we would have to make monthly payments for broadband and mobile services. The new technology became an indispensable part of our lives, in the process adding an unavoidable expense to our monthly bill. There are many expenses that are unimaginable now but become apparent with the passage of time. It could be a result of new technology or advancing age or environmental change.
People didn’t have to pay for water a few years ago, but now water is chargeable in major cities like Delhi and Chennai. Twenty years down the line, people in small towns and cities will also have to pay for clean water. Similarly, the expenses on grooming and professional clothes were zero in your childhood, but take up significant resources now. As you age, many new expenses crop up. The key is to plan for them in advance and invest accordingly. Here are five expenses you may have in your retirement that you do not have today.
The cost of medical care is directly proportional to age. When people are young, the cost of healthcare is almost zero. A pill for cold or an ointment for a sprain is all we need in several years. But at advanced age healthcare becomes one of the biggest expenses. The cost of healthcare varies widely depending on the fitness and lifestyle of the person. Many people ignore their health in their youth and end up paying a bigger price at a later date. Planning for medical costs should be the primary concern when planning for retirement. A health insurance policy is a must and it should ensure sufficient coverage. Do not wait for the 30s or 40s to get a health cover as the cost of premiums rises exponentially with age. A major factor to keep in mind is the potential cost of treatment of vision, hearing or dental problems. Though basic health covers do not cover these ailments, most have an optional feature. It would be prudent to have insurance with add-ons to cover vision, hearing and dental problems.
It doesn’t matter what kind of lifestyle you maintain, you cannot cut back on a decent house. If you are a government employee in India, the chances of living your entire life in accommodation provided by the state are very high. Even private companies provide rent allowance or company accommodations. While working, most people forget that they will have to bear the cost of renting or buying a house. The bulk of earnings are allotted to children’s education and other short-term requirements until the late 40s. A majority of people invest in buying a house just before retirement, which leaves them with installments to pay in retirement years. The wise thing to do would be to ensure a steady income after retirement. Investment in a whole life insurance plan, which will guarantee a regular income in retirement along with an insurance cover.
The community holds a lot of importance in India and people congregate at social events every week. At a young age, many people miss out on social events or relatives’ meet-ups due to various responsibilities. However, retirement leaves you with a lot of time which leads to a jump in social commitments. As soon as you step out of your house, your expenses start to accumulate. From commuting to gifting, social events soak up money. A regular income after retirement becomes a necessity to maintain a healthy social life. Invest in unit-linked investment (ULIP) plans to ensure insurance coverage along with a steady post-retirement income.
The direct cost of medical care is just one aspect of healthcare expenses. There is no certainty in advanced stages of life and many people require long-term care to live a healthy life. In cases of extreme weakness, disability or paralysis, an additional set of hands are required. As age progresses people become weak and frail without any disease and require physical help to manage daily chores. The cost of long term care is higher than one-time medical care and insurance policies do not cover it. Whole life insurance plans can provide adequate income support after retirement. ULIP retirement plan will ensure a regular income till 99 years and will simultaneously provide insurance cover. The best part is that the plan can be bought online on Finserv MARKETS in a few clicks.
The concept of family holidays is catching up fast in India. People travel intermittently while they are working due to reasons such as inadequate leaves and family commitments. The early stage of retirement is the perfect time to travel and relax. The cost of travelling increases after retirement as you need a minimum comfort level to travel without exhaustion. But without a salary, it becomes difficult to fund annual trips. When you invest in a ULIP plan, the insurance company ploughs a part of the investment into market-linked instruments. In the long term, ULIPs provide decent tax-free returns.
Retirement planning is still an alien concept in India, but to lead a fulfilling life you have to start early. Putting aside money into whole life insurance plans helps in building an income security net for retirement at the same time providing a life cover. Invest in Bajaj Allianz Life Long Life Goal ULIP Plan through Finserv MARKETS, a user-friendly portal for all your financial needs.
To know more on ULIP investments in depth, you can check out these blogs:
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