Hello Readers!!

Retirement, a phase of our life, when we have no regular source of income, throughout our working career, we keep saving, investing, and creating a big corpus to tackle our retirement expenses. But the question is only, do only creating a good corps makes us eligible to retire?

Well, other various parameters indicate you are ready to hang up your boots now! Let s have a look at these signs or parameters.

A Big Enough Retirement Corpus!!

Well, the golden rule of retirement is to end up working a career with a big enough corpus, at least 25 times your annual household expenditure at the time of retirement. So, if you want to check whether you are ready to retire or not, must ensure that for spending Rs 50,000 a month at the time of retirement, you have at least Rs 1.5 crore of corpus built in your retirement kitty.

This retirement kitty will give you a monthly income for the next 25-30 years of your life. Now in case, you plan to retire early, remember you have to save more, so do calculate that amount also and add it to your retirement kitty to be prepared.

Or you can add this amount to your retirement kitty after you retire also. This can be done by giving a bit of exposure of equities to your investment. Consider income flows in buckets of five years and starts investing the rest into equities to maximize the lifespan of your retirement kitty.

Health Expenses Must Be Prepared!!

Well, with the growth in your age, you are more prone to various health conditions that mean in your retirement days you have medical expenses also. The twist point here is that with the growth in your age, your health insurance premium goes up! If you are right now covered with the employer's health insurance, you cannot your whole life on that as it will get over once you quit the job. Alternatively, if you have taken health cover from a private insurer, usually it starts getting costlier at a later stage.  

And in case if you don’t add your health insurance premium spending in your retirement kitty, it could dent your retirement savings and reduce its lifespan. Here what you can do best is go choosing a family-floater health policy, it will cost but less than the individual health insurance plan.

Enough Retirement Kitty To Tackle Emergency Spends!!

Yes, even in your retirement days, you may face an emergency that requires spends, like a hose or car repairs, if not prepared for the, eventually they will eat your retirement corpus. Therefore, experts recommend, an individual must have a large emergency fund to provide for up to 12 months of their household expenses. Choose a reliable liquid fund to park it.

Have Expenses Prepared For Dependents If Any!!

Do you have children who are yet to finish their education? Or parents who are senior citizens and depend on you for financial assistance? It is incumbent upon you to provide for the children’s expenses at least till they join the workforce. Or take care of expenses of senior citizens– be it medical or otherwise. Check if you have achieved major financial goals such as children’s higher education, homeownership, and so on.

Keep reading for more updates on Mutual Fund Investment!!

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).