Many individuals perceive retirement as a difficult time. It is the phase, when you don’t have a fixed job or a fixed income. Life seems to be uncertain. For many others, it is a time to do many things – switch career, pursue a hobby or even time to just relax. 

The difference between the two mindset occurs depending upon how financially prepared you are to meet the basic requirements. Challenges are many – inflation, rise of life expectancy and also the desire to retire early (mostly seen among the millennials), but it is not an impossible task. Here, are the best financial plans for retirement: 

Insurance:

Whether in your 20s or 40s, whether you have a high risk appetite or you are risk averse, (if you haven’t) opting for an insurance is where you should start.  Considering that health inflation is higher than retail inflation, a health insurance is a must for every member of a family.

You can opt for an individual or a floater plan of yearly total of Rs 10 lakh. Second, consider choosing an appropriate life insurance plan which can partially protect your family members when you are not there. Always remember, insurance is not an investment. It acts as a protective shield during hard times. 

Equities:

Equity-linked products are the best option to save for retirement because currently, those are the only form of investments that can give you returns up to 12%. It is always suggested to start early so that the power of compounding can help you increase your money many a rounds. 

If you haven’t yet, start immediately. The investments have to be according to your age. Consult a financial advisor to understand how much you need to invest. Investors should opt for a mix of large cap and mid caps or simply choose multi caps which serve the same purpose. 

Real Estate:

If you don’t have your own house, it is always advisable to invest in real estate. It is not desirable to go on paying rent once you have retired and don’t have a regular income. But don’t treat real estate solely as an investment. The returns from real estate are not always good. 

Forex:

Like mutual funds or other equity-linked products, Forex provide good returns when invested over a longer period. If you have a 20 to 30 year horizon for retirement investments, then you can put some money in dollars and yen, which have a great potential of growth in the next few years.

Bond & Debt Securities:

These are among the favorite investment choices for all season. The issuer pays you interest in regular interval for debt funs. Over that, the principal amount will be returned to you once the maturity period is over. However, you have to be cautious about the companies you are investing in. Sometimes you may fall into a trap.  

Uncertainties can strike any time. There are times when you can’t find a solution to it. However, being prepared us the least that you can do.