Ready for your second innings?

Ready for your second innings?

photo by rockstarassi

Retirement is a time when you don’t work for money. It’s the time when money should start working for you.

You might have read many articles which suggest that you should start planning for your retirement when you are working, you should save and invest some specific amount of money every month to accumulate a corpus from which you can withdraw money every month after retirements – indeed, these suggestions are so true.

Financial independence is important when you are planning for retirement. But, you should also plan for the free time that you will get. Many people have no idea what life’s going to be like once they retire. It can be the most rewarding experience or the most disastrous one. You need to think about the financial side of retirement, but mental and emotional changes can be far more devastating than monetary issues.

Imagine – you don’t have to get up in the morning to catch that 7.30 fast local from Virar to Churchgate. You eat, sleep, watch television, go for a walk or simply do nothing at all. Sounds great, isn’t it? Some people can enjoy this lifestyle indefinitely, but most get bored soon (especially those who’ve been used to an active life… doing something always… these are the ones who can’t sit quiet…  they like to be busy with one or the other thing). When you retire, this would be your lifestyle, unless you make other plans.  The rest of your life could be 30-35 years; can you do nothing for that long?

Retirement planning is much more than opening a PPF account or purchasing a pension plan from any life insurer or mutual fund house. While these are excellent beginnings, you should also plan for all events that can and would happen after you choose to retire. Planning for your retirement income is definitely very important; however, you need to take into consideration certain aspects:

Keeping yourself occupied after retirement

When you start thinking about retirement, also start thinking about what you plan to do once you retire. Are you going to pursue a hobby, travel, join an ashram, volunteer or work? Just sitting around waiting to die shouldn’t be an option. Retirement will give you lots of free time. So you need to prepare mentally and emotionally to handle this time.

Place to live after retirement

People staying in their own house and people staying in company provided accommodation should figure out where to stay after retirement. Would you like to stay with friends, or go back to your native place to stay with your family? This decision will help you figure out how much you will have to add to the kitty in case you need to buy a house.

Disposal of your assets after death

This calls for a comprehensive estate planning with all your wills, powers of attorney, trust etc being properly drafted and registered.

Daily Diet and Work out plan

This is very important in today’s era when medical costs are touching new heights and also health insurance is getting costlier with a number of exclusions increasing as age goes up.


Assuming you have a term policy, then how would you pay the insurance premium – and on time? Unless of course if you have a plan like LIC’s Jeevan Anand where in you only pay insurance premium for a specific term (mostly these are your working years) and on maturity you get back a lump sum amount (premiums you’ve paid + bonus, if any) PLUS you are still covered and you need not pay any insurance premiums till the age of 100 or until death, whichever earlier.


Would your loans remain unpaid after retirement? If yes, then how much and how will you service it?

Retirement used to mean sitting on an easy-chair, reading a newspaper and waiting for life to end. Nowadays, retired people are taking up second or third careers, travelling non-stop and enjoying good health.

Your retirement plan needs to include lifestyle plans as well as financial plans. Retirement is like the second innings – where scoring runs is important, but more important is to stay fresh.

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Author: Austin Comments: 1 comment Date: 14 Dec 2008
Categories: Retirement Tags: , , ,

There are 1 comment. Leave a comment!

  • ¬ Mike Bonacorsi
    #826 December 15th, 2008 at 11:44 am

    Preparing for retirement before it happens is the key to making it work.Ask yourself why you are retiring and create a vision as you would like to see it happen. Understand your financials, money in retirement is more than the value of your 401k, it is understanding your cash flow (how much and where will it come from), and how much it will cost you. How will you deal with shortfalls. Understand pension and SS options and how they fit into your situation. Remeber,many of the decisions you make will affect a surviving spouse. It is mandatory you understand health care optins, for many this will be the biggest expense. The good news is we are living longer the bad news is we could live longer with health issues.

    Mike Bonacorsi author
    Retirement Readiness

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