People are living longer – thanks to the advancement in medicine. A study published in The Lancet journal last year found out that the Indian population has gained around a decade of life expectancy since 1990. This is an uplifting news.
However, one of the concerns related to such news is that the individuals who live longer than they expected may find that their retirement reserve funds are lacking for such a result. If this is the situation, a retiree may discover that they are unfit to keep on carrying on with their retirement lifestyle or even reach a point where they have to rely on others when their money runs out.
As the average lifespan expands, more people wind up confronting the danger of outlasting their retirement funds. Given the growing attention people are giving to this issue, it bodes well to have the concept of a longer life integrated into your retirement planning — to have alternative ways of saving money such as FD accounts.
Another factor that frequently sees a possibility is the constant risk of inflation. Inflation, also known as the buying power, looks at the perils, which a rising cost of living has on fixed incomes. Inflation can lead to your retirement savings to diminish quickly — the savings that you thought would last you for a long time after you retire.
Both of these dangers can entangle retirement planning as people live longer than in past ages. By considering life span and expansion chance in your retirement planning, you can constrain their effect and keep on carrying on with your initial plan of sticking to a certain preferred lifestyle post-retirement.
Here are a few advices that you can take to improve the risks that your retirement investment funds will be sufficient to accommodate you in retirement — regardless of whether your lifespan surpasses your average life expectancy.
Plan for your income to extend beyond your average expectancy
While living longer could be something that you could be thankful for, if your retirement pay doesn’t last you till your expected years, it could be a turn-off — regardless of whether you are still healthy or not. You can take care of this by planning for the non-ensured part of your retirement pay —not including any funds you plan to leave as a heritage — to last you till an age which well past your general life expectancy. If it seems that you could surpass or outlive even the revised years, then you should make changes to your plan on an ongoing basis.
Have a retirement income buffer
Particularly for those on fixed salaries, for example, retirees and pension holders, inflation can adversely affect your standard of living in retirement by reducing your purchase power. One approach to plan for such a situation and deal with it effectively is to have a buffer for your income post-retirement. If you thin Rs 20,000 will be enough a month after you retire, well, plan to save up for having at least Rs 25,000 a month — a Rs 5,000 buffer can be a deciding factor.
If your evaluations are right, you can place the additional assets in reserve funds or a fixed deposit account.
Have a fixed deposit account
FD accounts on Finserv MARKETS are one of the best choices for saving money. They are not subject to any market risks and returns and can offer you interest rates as high as 8.95 percent. On Finserv MARKETS, the tenure for fixed deposit accounts is between 12 months to 5 years.
Fixed deposit accounts can help you ensure that your money is safe and secure, and can be returned to you whenever you want with fixed interest rates. Deposit market fluctuations, returns on FDs are promised. FDs ensure that your money is in safe hands where you can access it easily.
FDs on Finserv MARKETS can be bought in simple and easy steps. All you have to do is fill in your necessary details, choose the fixed deposit plan, and go on to deposit the money to get your account activated. FD accounts have a stable ICRA MAAA and CRISIL FAAA rating, which means that your investment is safe.
With no hidden charges, fixed deposits are the right way of saving money ahead of your retirement.
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