Key Highlights
- Review your retirement savings to ensure they sufficiently support your current lifestyle and address any gaps promptly.
- Secure health and term insurance even in later years, as it offers essential coverage against unforeseen expenses and ensures family protection.
- Regularly update nominations to ensure your loved ones can easily access funds in an emergency.
ar too often, I have seen people entering their next phase of life without the proper legal, financial, and care-related safeguards in place. There's a tendency to believe that these things can be sorted out later or that someone else will simply 'figure it out.' Taking control of your finances and legal matters isn't just about securing your own peace of mind in your later years—it's also about ensuring your loved ones are well cared for when you're no longer there to guide them. At GetSetUp, we believe in empowering you to make informed decisions and live life to the fullest. You've worked hard to build your legacy—now is the time to protect it with wisdom and care.
💰Review Your Retirement Savings
Are you confident that your retirement savings are sufficient to maintain your current lifestyle? It’s essential to regularly revisit your retirement income sources, whether from pensions, investments, or annuities. Start by estimating daily expenses, healthcare costs, and potential luxury spending. With 78% of the elderly population in India without a pension, according to the Ministry of Health and Family Welfare, it’s important to ensure your savings are sufficient to support you. Consider inflation's impact on your savings and structure your investment portfolio to outpace it. A diversified portfolio, balanced across stocks, bonds, and other assets, helps manage risk and ensure steady growth. Remember to regularly review your portfolio to stay aligned with your retirement goals.
🏃♂️Stay Active Mentally and Physically
Regular physical activity and mental engagement are essential for a healthy retirement, especially in India, where the Longitudinal Ageing Study of India (LASI) 2021 report reveals that 75% of the elderly have one or more chronic diseases. The study also highlights that 24% of seniors have at least one limitation in Activities of Daily Living (ADL), and 48% report limitations in Instrumental Activities of Daily Living (IADL). These statistics underscore the importance of staying active. Regular physical activity can help prevent or manage chronic diseases, improving mobility and overall health. Meanwhile, staying mentally engaged through hobbies, learning, or social activities can significantly reduce the risk of cognitive decline and improve life satisfaction.
⚕️Secure Adequate Health and Term Insurance
As healthcare costs rise, having the right insurance is essential. As per statistics, only 18% of older adults have health insurance, which leaves a large population base vulnerable to financial strain from medical emergencies. As we age, the likelihood of chronic diseases or unexpected health crises, like pandemics, increases. A comprehensive health insurance policy provides a protective layer of security, ensuring you can access the care you need without depleting your savings. Equally important is term life insurance, which protects your loved ones by ensuring they're financially secure, even when you're not around. By securing both health and term insurance, you can confidently enjoy your 50s and beyond, knowing you've covered all the bases.
📝 Writing a Will
Writing a will is like planting a resilient tree that offers shade and protection for the family behind you, especially if you are the main provider and the current controller of all asset allocation of your savings/investments. A well-crafted will minimizes legal complications, preventing conflicts among loved ones and avoiding the state's intestacy laws from deciding your estate. It also protects your dependents by designating guardians or caretakers, providing peace of mind that they will be cared for in your absence. Additionally, a will allows you to support charitable causes, ensuring your wishes are honored even after you're gone.
📄 Update Your Nominations
Have you reviewed your bank, demat, and insurance nominations lately? This small yet significant step ensures that your loved ones have easy access to your funds in case of any unforeseen event. Regularly updating your nominations is essential to reflect changes in your family dynamics, such as marriages, births, or other significant life events. It’s a straightforward way to secure the financial well-being of those you care about most.
Taking time to secure these essential foundations today will surely give you greater confidence and peace of mind about your future tomorrow. It’s not just about preparing for the future but actively shaping it.
Article written by Ashwini Kapila, a retired banker who has served in the financial services sector spanning more than 28 years.
