Hello Readers!
Retiring early which means taking off from working life a bit before is choice preferred for many. People do plan for their early retirement. Adopting the good financial habit of saving and investing aggressively in the early years of their life, these steps take investors closer towards your retirement goals. Once they are near to reaching their retirement goals, people start hanging their boots to accomplish their long-cherished dreams.
But wait! Before you think of retiring early, you must go observing your early retirement corpus, does it preclude any shortfalls in the future?
Instead of retiring early have you ever thought of semi-retiring. Semi-retiring means working part-time or intermittently during the time of retirement to cover your daily expenses while letting your retirement kitty grow.
Well, in case if you plan to semi-retire do consider the following points while planning the same.
Increased Life Span
While planning retirement kitty, investors often take on average, 25-30 years of age after retirement for which they have to create their corpus. However, an unexpectedly long lifespan, thanks to medical science and technology, can have an impact on your retirement calculations. Extension in your life span can result in the need for a bigger corpus. Here, semi-retiring can help, it will give you the necessary ailments that make midway course corrections easy and keep going.
Rising Medical Costs
The older you get, the more you are near to diseases. Diseases are a problem, but their costly treatment and medication is a big problem, they can empty your pocket sooner than expected.
Medical Insurances or Health insurance gives a kind of relief in the treatment costs; however, these too include many terms and conditions. it might happen that your insurance policy does not covers, existing diseases or provide cover for some diseases only after a time period. In such cases, you need to be prepared for the worst situation.
Engaging Yourself Helps You Stay Active
Money is necessary for your expenses, but at the same time, it is also necessary to keep yourself engaged even in your retirement days so that you can help your mind stay active and body be sharp. Working part-time, help you keep engaged with the world.
Also, semi-retiring will help you not to compromise in your lifestyle in case if you have not saved enough for your lifestyle in your retirement kitty.
How to Semi-Retire?
Well, for semi-retirement there are various options like you can look for a part-time job with your ex-employer, or you can look towards working in non-profit organizations, where you can use your skill, productively. You can also look for some freelancing jobs in your area of expertise.
Prepare Before You Take A Semi-Retirement
Before you semi-retire, prepare a budget that includes the household budget expected to be after you quit your full-time job? How much you will get from your consulting work and how will this cover your expense? Analyze your major spending categories and make necessary adjustments in your expenses so that you can within your means.
Importance of Equity
It is a fact that when you are near retirement or in your retirement, it becomes difficult for you to invest in risky Equity funds. However, investing in safe, conservative, and fixed-income funds may not help you preserve your wealth, because investments into bonds and cash equivalents stand the risk of losing their purchasing power when you withdraw. Thus, it is recommended, to invest in Equity to growth funds, that not only benefit you by giving inflation-beating returns but also helps grow your retirement kitty keeping pace with your life span.
Well, semi-retirement has many other good perks too, like it helps you stay socially and mentally active and let you enjoy better retirement life. And the extra income from your semi-retirement cushions your retirement kitty.
For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).