You may be settled with a good job and a luxurious life today, but you must plan in advance to continue availing the same facilities post retirement. Know how your expenses can change once you retire in this post.
Retirement Planning sooner is very important for everyone as there are many added expenses that crop up with age, especially related to your healthcare facilities. The best way to deal with such costs is by investing in good ULIP plans. They are considered ideal plans for post retirement life. Let us learn more what is ULIP plan and all about it in this blog.
ULIPs are considered as good investment plans to suit the needs of people looking for long-term investments. With an ULIP, not only can you offer financial protection to your family in the event of an unfortunate incident, but it also allows the insured to grab returns on a part of the investment. Further, if you are looking at creating a corpus for your retired life, ULIP would suit you the best for post retirement years.
However, you cannot wait till the last day of your job to plan for your retired life. You must start planning for it soon while you are young and working. As such, the cost of living is not going to come down, rather it will rise with every passing day. So, it is necessary to plan accordingly so that you can have a peaceful life post-retirement.
Hence, we are discussing retirement plans India with some basic expenses that a family or an individual may have to incur once they retire by 2050.
5 Basic Expenses for 2050 That You May Not Incurring Today
1. Healthcare Needs
Yes, healthcare is one of the most important and vital expenses that you are required to consider. You need to keep a chunk of your savings for different healthcare needs post retirement. Reports suggest that India is likely to see its retired population getting doubled by the year 2040. When there is a sudden increase in the population of aged people, there would be an equivalent rise in the medical needs of this population as well. This might lead to a shortage of facilities for the aged. Thus, the elderly would have to spend a large sum of their earned money in getting better health facilities. Hence, a sound base of finance is important if you want to meet the medical needs of you and your spouse in the future after you retire.
2. Higher Education/Wedding of Children
As the cost of education is rising with every passing day, it is obvious that by 2050 education of children will bring upon a significant expense to the parents. Hence, if you plan to send your child to the best institution in India or abroad, you would have to save enough for that. Further, marriage of children also costs a lot and needs to be considered in advance if you intend to have a good wedding function for your child. Hence, your future financial goals need to be considered after giving prior thoughts to these expenses.
3. Leisure Activities
Unlike in the earlier times, people these days like to spend quality time with their family by going on vacations away from their busy schedules. Moreover, when you are working for years together, you definitely need breaks in between to spend good time with family after you retire. In fact, travel has become a part of life these days. Hence, you need to consider such leisure activities and their related expenses at the time of your retirement planning.
4. Accommodation Expenses
You may be living in a city as part of your job requirement. However, once you retire you may want to move to your preferred city or town to live a peaceful life with closed knit family members. However, you have to consider that by 2050, there would be a significant rise in the housing costs if you plan to relocate to your preferred city. Also, even if you have your own existing house in the city you want to move to, there may be other needs like renovation and maintenance of the house. Thus, a large share of your income is spent on housing costs. So, you must plan your post-retirement period accordingly.
5. Other Miscellaneous Costs
Besides the above expenses you must also consider the numerous miscellaneous costs that might arise such as sudden health crisis of a family member, any important need of children and so on. Also, the increase in the cost of living because of inflation is there too. Further, these expenses are not likely to come down. In fact, you may see unimaginable costs cropping up post-retirement that you would never expect. So, being prepared for them is important.
How do ULIPs serve the purpose of long-term expenditures?
ULIP plans invest your money in investment funds such as equity funds, debt funds or balanced funds, which is a combination of the two. Thus, these plans allow the investor to have goal based investment planning so that each and every life goal of the insured can be taken care of at the proper time. Hence, ULIPs allow the person investing their money to have systematic investment so that they could fulfill their particular monetary goals. The plans are available with a five year lock-in period to make sure discipline in the investment. However, the investor is required to make regular payment of the premium amount and keep the policy active. This will help in wealth creation as per the need of the investor and his/her future financial goals.
Advantages of ULIPs for long-term expenditure
One basic advantage of ULIPs is that they come with the option of fund switching. So, the investor can switch between debt and equity funds as per their risk appetite or the kind of risk they want to take. Also, they can consider their long-term financial goals while investing in the kind of funds that they want to.
Read More: Why are ULIPs a Good Investment for a 20-Year Horizon?
To Sum Up
If you are planning to invest in ULIPs for the long-term, you can be rest assured and go ahead with the best retirement plan in India. This will support you with your post-retirement years and the financial goals that you aim after retirement. Of course, it is advised to go through the plans cautiously and compare and understand them better so that you can benefit from the plans most and they serve your financial goals well.
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