What image forms in your mind when you think of retirement? Ample time to pursue your hobbies or the lack of monthly income? The term ‘retirement’ can induce different emotions in different people. However, one thought is constant for most individuals – health issues and expenses. That’s because after retirement health expenses can be massive and you must be prepared for them.

And when it comes to starting your retirement planning, there’s no better time than the present. So, here are a few tips to help you ensure sufficient funds for medical expenses post-retirement.

#1 Determine your living expenses

First off, monitor your current financial situation and lifestyle to determine your future living expenses. Consider recreation costs, utility bills, housing costs, and other monthly expenses. Also, don’t forget about inflation. This way, you can get a brief idea of how much money you need to save for your old age.

#2 Purchase a comprehensive health cover

Since healthcare costs are rising at an alarming rate, you must avail of a health insurance plan while still working. This will help avoid the impact of unexpected expenses and provide a financial cushion against them. Before purchasing an after retirement health plan, you can even consult a financial advisor to select a health cover that will safeguard you against different diseases and medical conditions.

Additional Read – 5 Reasons to Buy Health Insurance if you don’t have one

#3 Create a dedicated contingency fund

Sure, the insurance cover can pay most medical bills, but that’s not enough. If someone in your family has a lifelong illness that requires ongoing treatment, the insurance may not cover the entire cost. Thus, it is crucial to build a separate emergency fund for such situations with liquid assets that can be used in a crisis.

#4 Invest to grow your wealth

With a contingency fund, you should also build your retirement corpus by investing in multiple financial instruments. Be it mutual funds or stocks, invest your funds to grow them over time. Ensure a diverse investment portfolio with vehicles that offer different risk profiles and liquidity.

You can also opt for products like fixed deposits that enable you to generate a passive income with periodic interest. Download apps like Moneyfy to take care of your investment needs and help you invest in the right products.

#5 Start early and prepare for the worst

Last but not least, start saving early to tackle healthcare expenses in the future. Also, even if you are healthy currently, always prepare for the worst-case scenarios. Hence, be financially prepared for severe illnesses that you could be susceptible to in the future. Take a focused approach and inculcate financial discipline to save money efficiently.

Additional Read – 5 best tax saving measures you can take as a working professional

Parting thoughts

Looking for a digital companion that can help make your investment journey seamless? Look no further! Tata Capital’s Moneyfy app is the perfect solution for all your investment woes as it helps you invest in the right products and funds. So, what are you waiting for? Download the app and start growing your wealth with ease!

0 CommentsClose Comments

Leave a comment

Disclaimer: 

To know more about Terms & Conditions, click here.

Copyright © 2021 Tata Capital Financial Services Limited