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Check If You Are Eligible To Retire

Mr. C.S. Sudheer | Updated On Friday, May 27,2016, 10:46 AM
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Check If You Are Eligible To Retire

 

Retirement is the time when your life is truly yours. No more rushing to catch the train to office. No more long working hours. No more targets and deadlines. Time to remember this phrase “Retirement is when you stop living at work and start working at living”. Yes, everybody would love to retire, but there is a problem. Money….You need to have lots of money to retire. Well…at least enough money to spend your remaining days, free of financial worries….In your retired years, you don’t realize how fast your time and money is spent. Now to the big question…Are you eligible to retire?

Do you have any loans to repay?

You cannot retire until your loan retires. You have a personal loan or a car loan or a home loan to repay? You can forget about retirement. The first step to retirement…Being debt free… Your money is never truly yours, as long as you have a loan to repay. So get rid of the loan first. After you retire, you might have to live without an income. How can you carry the burden of a loan on your back?

Do you have money for medical expenses?

You are earning a good income. You still find medical treatment and hospitalization a very heavy burden. How will you pay your medical bills after you retire? In elderly years, cost of medical treatment shoots up. You must have a health insurance plan, which covers you and your spouse for hospitalization and medical treatment. Make sure you can afford the premiums of the health insurance plan, after you retire. There is something more important to consider… Do you have money to buy medicines if you or your spouse falls ill? Health insurance plans cover you for hospitalization and medical treatment.  However, it doesn’t cover you for the cost of medicines which can be quite expensive. You have to pay for medicines from your own pocket. Make sure you have enough money to pay for medicines, not just after retirement, but for several years to come.

Are your kids settled?

It is very difficult to retire, if you have children studying or in college. College fees particularly for professional courses such as medicine, engineering and MBA are frightfully high. It would be better to postpone retirement, till the time your children complete their studies. Another important reason for you to postpone retirement?  If your children are working, they could support you in case of a medical emergency. Your children’s marriage is important not only in their lives, but also in yours. Marriage today is a costly affair. They might need your support when they get married. If your children hold good jobs and are happily married and well settled, you could go ahead and retire. If not, stop…pause and think if it is better to settle your children and then retire.

Have you planned for the unexpected?

Life is full of surprises. Some surprises are great fun…Some are pretty nasty. You need money for the nasty surprises in life. An unexpected medical emergency for you or spouse? You need money for the medical treatment. Remember the recent floods in Chennai? If your home is in a flood affected area, you would need money to repair your home or even to relocate. Are you prepared for such an emergency? If you have the confidence to meet any emergency, then go ahead and retire happily.

Practice the retired life

After you retire, you would have a much lower income than you currently enjoy. You could be living on a pension, instead of a bulging income. Could you live on such an income? Why not practice today to see if you can do so. You have a rough idea of how much money you would spend post retirement. Live for a few months on such an income and see if you can meet your expenses. Do you find such a life difficult? Do you find the money too less to meet expenses? If your answer is YES, then make a new budget for retirement, where you will have more money to meet expenses, post retirement. You might even have to postpone retirement.

Why do you want to retire?

You need to answer this question, to find out if you are eligible to retire. What will you do with all the time you have? Whiling away time doing nothing cannot be a great way of spending your retired years.It would be wise to seek part time employment or indulge in a hobby, you really enjoy. A daily walk or a regular outing to the park might be a great idea. You could take up classes, where you learn a new skill. If you do not know how to spend your time after you retire, you need to consider if you are eligible to retire or not.

Retirement is when you stop living at work and start working at living. The team of wealth doctors at IndianMoney.com is always there to help and guide you. You can explore this unique Free Advisory Service just by giving a missed call on 022 6181 6111. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

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Article Author

Mr. C.S. Sudheer

Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.

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