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5 Expenses You May Have in the Future & How to Plan for Them

By Finserv MARKETS - Aug 5,2019
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Plan For Your Future Expenses With ULIPs

It’s hard to imagine a situation which you haven’t faced in real life yet but can expect to face in the future. Imagine how things will be in 2050. If you are a 30-year old now, you’d have already retired (unless of course the government extends our retirement age). You’ll be worrying about your retirement corpus and whether it will be enough. You’ll also start to wonder how you will keep yourself engaged after retirement; after working for 35-40 years.

Retirement has various emotional, psychological, social and even physical effects on our lives. However, the most important thing that impacts us is the financial aspect of retirement. Again, it boils down to how proactive and wise you have been in protecting yourself and your spouse financially before retirement. One of the best retirement planning steps you can take as a 30-year old is buying a whole life insurance plan, especially one that offers the advantages of ULIPs.

To help you plan accordingly for your future and to make it more realistic, we will identify 5 expenses that don’t exist today but you can expect after retirement. We will also offer suggestions on how you can plan for those future expenses.

Healthcare expenses

Regular and emergency healthcare services will include a major chunk of your retirement expenses. Apart from routine checks and tests, you may have to make regular visits to the doctors. Then there is the cost of prescription medicines and health supplements that you will require as you grow older.

If you or your spouse suffers from any ailment or illness then your healthcare expenses can easily wipe off your savings. Therefore, a health insurance plan, is something that you must buy without fail before retirement. Critical illness insurance is especially useful after retirement as there is no age limit for renewability. However, there is a limit on the entry age. You should buy critical illness cover before you reach 60 years. Go for a standalone policy as it will give you the flexibility to select the coverage or sum assured.

Socializing expenses

Retirement is the time when you will be out of the proverbial “rat race.” It is the time when things don’t have to move according to the clock and you can laze, relax, watch cricket and pursue your hobbies and interests.

You can join a club to meet like-minded people and make friends or join a yoga group to keep yourself fit. Retirement will give you ample time to socialize with friends, family and relatives. However, all this means extra expenses that will eat out on your savings and your pension plan, if you have one.

You must have a substantial corpus to enjoy the things you love after retirement. Otherwise you’ll have time in your hands but not the money to enjoy life. Bajaj Allianz Long Life Goal, available on Finserv MARKETS is a whole life insurance plan that offers the advantages of ULIPs and makes sure you enjoy a good life after retirement. With these unit linked insurance plans, you get to enjoy advantages such as whole life insurance plan protection for your spouse or dependents, wealth creation for retirement, flexibility of investment, easy liquidity and tax benefits.

Traveling and holiday expenses

There’s no fun in retirement if you can’t go to the places you have always dreamt of while you were busy earning a living. Now you can visit and explore those places that you have always dreamt of and go for a vacation to exotic holiday destinations.

A 4 days 5 night package to a South Asian destination to Indonesia, Sri Lanka, Cambodia, Singapore and Hong Kong can easily set you back by Rs. 1 lakh for a couple. Therefore, you must have the savings and income that may come from a pension plan, annuity plan or ULIP plan.

Gifts for your grand children

As grandparents you will love spending time with your grandchildren and pampering them. You may want to splurge on them and surprise them with gifts now and then. Some grandparents may want to invest money for their future as well. You have to save and invest accordingly to take care of these expenses.

Imagine the joy of seeing the happy, smiling faces of your grandchildren as you spend time with them and surprise them with gifts without worrying about your financial health. Investing in an annuity plan or a retirement plan will take care of such expenses when you retire.

Living in a retirement home

As you retire, your children may also get married or choose to live abroad or in another city. In such a case, you and your spouse will be left to fend for yourself. A huge retirement corpus cannot replace their absence; however retirement homes and communities can be a blessing in such a situation. Retirement homes and communities, a western phenomenon, is fast catching up in India.

These are not old age homes but places designed to ensure that one doesn’t feel alienated from the community. In fact, in some retirement homes people live in the lap of luxury with all modern amenities and servants. Also, there are professionals who are responsible for taking care of the physical and mental wellbeing of the residents.

If you are in your 30s today, you will be 60 plus in the year 2050. Now is the perfect time to start planning for your retirement so that you can enjoy the twilight years of your life after all the toil and hard work that you have done.

Life is unpredictable; what you may take for granted may not be available in 2050, so act now for a peaceful and fruitful retirement life.

Also read in detail about the ULIP tax benefits you can avail with investment plans available on our platform.

“Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere”!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522