Once upon a time, the working member of the family, typically the husband; would take financial decisions of the family. The dynamics have changed; women as well as men enjoy equal financial independence in a progressive society. As a consequence, it becomes imperative for financially independent ladies to be as focused on retirement planning as their male counterparts.
Women tend to outlive men in most cases, so it becomes even more important for them to take their retirement planning seriously. With financial independence comes a certain kind of lifestyle. To maintain that lifestyle over the years, a woman has to plan her future smartly so that rising inflation does not prove to be a hurdle when she is past her productive work age. If your monthly expenses are Rs. 19000 per month now, 30 years from now, you will have to set aside Rs. 1 lakh just for the current level of expenses. The rising medical bills are a different ball game altogether. So, it becomes crucial to you as a woman, to secure your future in the best manner possible. Here are some ways in which you can undertake a smart retirement planning.
- Get a Term Plan – It is not just the man’s prerogative to insure himself as they show in most TV ads. A working woman should also consider it a priority to protect her family members from uncertainties, and go for a sufficient life cover. Apart from the husband, a woman should also independently think of her children’s requirements and opt for a term cover, so that they are not at a disadvantage, should anything happen to her.
- Get adequate health insurance – Medical research has shown that women tend to face health issues more than men, ahead in life. So, it is important to get sufficient health cover. The good thing is that women especially in their 20s and 30s tend to be generally healthy and can get a good health cover at much cheaper rate then a man would.
- Invest in a SIP mutual fund – One of the best ways to retire smart is by investing in a well chosen mutual fund with a long-term plan. You can choose to go for a tax saving fund as well. It is important to not just file taxes but also understand how the planning works. If you need explanations, ask your tax consultant to make things clear to you. It is important to get clear about money concepts, whether you are a man and woman, and really know what you are getting into.
When you invest in a mutual fund, you can preferable take the SIP (Systematic Investment Planning) route. You will be able to invest money in a disciplined manner every month and keep track of the growth of your investment. Over a long-term horizon, you will find that your money benefits from compound growth. Keep investing, irrespective of the market being low or high; your eyes should be set on the goal of retirement planning. By a certain age, you will have acquired a sufficient corpus that can help you lead your life independently, without any economic hurdles.
Have a great retirement 🙂