Learn How to Plan for Retirement in Your 50s
Published On Nov 03, 2021 10:00 AM By Kanika Wadhwa
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Planning for your retirement by the time you get 30 or 35 years of age is always considered to be a wise move. However, in case you still haven’t planned for your retirement, there is still a little hope left in order to resolve your situation. Retirement planning in your 50s would be different compared to the plans set by you in your 20’s or 30’s.
Tips for Retirement Planning in Your 50s
Highlighted below are some of the tips that you can follow to save for your retirement in your 50s:
1. Evaluate your Financial Needs
The significant tips that you must follow in case you are planning for your retirement in your 50s is to take into consideration all your financial requirements and status. Going through your present financial situation is significant to create a more informed plan in order to fix all your financial obligations. The status and financial needs can be calculated easily after taking into consideration your future and present expenses alongside calculating your current investments and assets. It is important to consider the inflation factor at the time of determining these factors.
2. Do Investment in the Best Financial Plans
If you are starting with your retirement planning at 50 years of age, you need to keep in mind that your retirement is near. Therefore, it is always considered wise to invest in the ideal pension plans that offer higher returns in a shorter time period. However, it must be noted that at the time of investing in a pension or retirement plan, the amount of premium would be higher than the amount spent by you in case you would have purchased a pension plan in your 20s or 30s.
3. Focus on the Savings
Another thing that you need to follow at the time of planning for your retirement in your 50s is to focus on your savings. It is the only means by which you can extend your investment portfolio for a relaxed retirement. A policyholder can opt for a retirement or pension plan that provides higher return on investment or increase the sum that you are investing on a monthly basis. As per the financial reports, in case you are in your mid or late 50s, then you should always look for low risk investment options that helps you in saving around 35-40% of your earnings.
4. Don’t Rely Solely on Provident Funds
A provident fund is said to be amongst the most protected investment platforms, and it is suggested for each individual to at least hold a Provident Fund account. However, you must not depend only on your PF for your retirement. A policyholder must make sure that their investment portfolio has a combination of equity and must retain investment returns on an upward moving graph.
At the End
Planning your retirement in your 50s is not a difficult task if you keep yourself focused and don’t make decisions in a hurry. Try to keep your insurance plans manageable and prioritize your requirements over your wants. Strategizing and planning of your financial goals can help you in mapping the ideal insurance plan that you require to have a calm and relaxed post retirement life.
You may also like to read - Benefits of Early Retirement Planning in India
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.