• To enjoy a fulfilling post-retirement life, it’s essential to start preparing for it early in your journey. However, if you find yourself nearing the later stages of life without any retirement planning, this article is meant for you.

• Continue reading to discover how to plan your retirement at the age of 50 and beyond.

• I must begin retirement planning NOW because….

1. It would guarantee a source of income over the next 20-25 years after retiring.
2. I wouldn’t have to compromise on the lifestyle I’m accustomed to and can live comfortably knowing there’s a steady income.
3. In case of unexpected situations, I wouldn’t need to take drastic measures like liquidating my assets or borrowing money.

Are you nearly 50? Still have not arranged for retirement? Here’s how to strategize effectively.

• I realized that it was essential to start planning for retirement. But how and where should I begin? Ashok made this clear for me, he suggested, “Simply follow this 4-step process to plan your retirement wisely. ”
• STEP 1 – Get, Set and Go! – Establish goals and begin working towards them.

• At 50, you may have various goals that require prioritization, such as costs related to your children’s schooling, their wedding, or healthcare expenses. Prioritize these goals and set deadlines. When multiple goals are present, rank them based on their importance and determine how much time you have to accomplish each one. Although retirement might be years away, ensure you consider it early enough to start progressing towards it.

STEP 2 – Wrap it Up! – Begin settling your loans and debts.

• To enhance your investments aimed at retirement goals, initiate the process of closing your loans and debts. Ashok wisely remarked, “Ideally, you should have cleared your EMIs by the time you reach 60, ensuring your liabilities are sorted out, especially since you are starting later in life. ”

STEP 3 -Make it less harsh – Organize your financial products.

• Taking the discussion further, Ashok pointedly asked me, “Are you aware of how much you have? How much you’ll need? Which funds should be redirected for better returns? What can be consolidated, and what should be discontinued? ”

• Throughout the years, you might have invested in various financial options such as fixed deposits, savings accounts, and different investment vehicles. For instance, if you have invested in a company that is underperforming, it could be wiser to withdraw that investment and redirect the funds into pension plans, ELSS, PF, and bank fixed deposits.

• Rearrange your financial products to create investments that will generate the necessary funds for your retirement savings.

• Since you are beginning late, you must ensure that your investment portfolio leans towards safety and guaranteed returns rather than a high-risk, high-reward strategy.
• When you reach your 40s, it is recommended that you decrease your equity allocations. Ideally, during the years you plan for retirement, no more than 50% of your investment portfolio should consist of equity options since they carry higher risks. It is preferable to invest in pension schemes, ELSS, public funds, and fixed deposits with banks.

• Ashok’s statement succinctly expressed, “Make use of what you have, save for what you require, invest wisely, and enjoy the benefits of your efforts. ”

STEP 4 – Create a Nest Egg! – Begin setting aside a portion of your take-home salary for investment.

• A discouraging comment by Ashok came to mind; he stated, “By the age of 50, you ought to have saved at least five times your annual income for retirement. ” Indeed, five times! I realize I need to make ‘catch-up contributions’ to achieve this corpus.

• To establish your retirement corpus at this stage, commence by investing a larger portion of your earnings after covering your monthly expenses. As he mentioned, “Understand what you desire and you’ll know where to put your money. ”

• Looking for a reliable income source upon retirement? An Annuity Plan enables you to transform your savings into a secure lifetime income stream after you retire.

• Eager to satisfy your investment cravings? A Unit Linked Pension Plan (ULIP) offers a choice between a more aggressive or a conservative strategy. In this arrangement, the amount you invest appreciates over time and becomes accessible at the time of retirement.

• Desiring to allocate funds flexibly while staying shielded from market fluctuations? A Systematic Investment Plan (SIP) or a Systematic Transfer Plan is a suitable solution for salaried individuals new to the capital market. It facilitates dynamic fund allocation and safeguards you from market volatility.

• Since you are starting later, you can also invest in large-cap stocks (which are less risky) over an extended period to grow your retirement fund. This approach will enable you to gain additional income through stable returns in your retirement years.

• With these four straightforward steps, Ashok has certainly aided me in feeling more at ease. Although I am beginning my retirement planning later than ideal, by focusing on my financial objectives, settling my liabilities, organizing my investments, and reserving a portion of my salary, I can save to construct a retirement corpus in a timely manner. As the saying goes, ‘Better late than never,’ so start planning your retirement NOW!