After retirement most people wonder what to do with the extra money in the bank.

1. Money Matters after Retirement
After retirement most people wonder what to do with the extra money in the
bank. You may be one of them and could be wondering about the best options
that are available. Of course, you would have already considered buying a nice
piece of property in some senior retirement homes project in your
neighbourhood. You are planning to settle down, and have some extra money
that you are looking to invest wisely. You can start financial planning even at
this age (if you haven’t already), and financial planning in your 60s can be
utterly complex if you don’t know how to go about it. Here are a few tips for
those who’ve retired and for those who are on the threshold of retirement.

2. Gearing up for retirement
You could have been one of those thrifty people and would have been saving
for retirement while still in service, or may have given it a thought when you are
just going to retire. Even if you thought of starting very late, it really doesn’t
matter. 60 is not the age when everything is over, you can start fresh, or
reassess your financial situation. You need work out your current sources of
income and plan your financial future accordingly.

3. The Options
The easiest way would probably be to prepare yourself financially for retirement
and rehearse some numbers in your mind. If you hate numbers and
calculations, you can always turn to the Internet where you can browse and get
details of almost anything you are looking for. You have ready-made
calculators and ready-reckoners that will help you understand financial matters
better. You need to arrive at the amount of retirement funds you will have at
your disposal, and calculate the approximate growth prospects for the funds
over a period of time.

4. Know where you stand
You need to keep track of every single paisa you spend. Most people don’t
bother to write down their expenses and will regret it at a later stage. If you
take your bank accounts over a period of 5 to 10 years, you’ll realize the
amount of money you spent on various things. This will give you a rough idea
of the approx expenses per year. Of course, post retirement, you would have
settled in your new house for senior citizens and you don’t have to worry about
paying rent anymore. If you have made a onetime payment for the senior
citizen living home you recently acquired, you won’t have to worry about EMIs.
However, if you have gone for a short-term loan, you have to make provision
for regular EMI payments. It is better to make a practical estimate of all your
expenses during your retirement, after giving provisions for changes in lifestyle
after retirement.

5. Consolidate all income and make provision for shortfalls
Whatever money you have left after investing in one of the senior citizens
homes needs to be invested in income generating debentures or stocks of your
choice. You could also look at post office savings schemes and fixed deposit
options in banks. If your income exceeds your expenses, you are quite safe. In
case there is a shortfall, you may need to supplement the income by working
part-time. The only other option you have is to trim your expenses.

6. Don’t let your insurance policies lapse
There are more insurance policies that end up lapsing than ones that mature
fully. Please keep in mind that an insurance policy is the best bet that can take
care of unforeseen events. However, in most cases the insured person outlives
the term of the policy, and ends up getting handsome returns. If you have
minor kids and a spouse who doesn’t work, you may want to explore the
options for covering them as well in any of the various schemes and plans
available.

7. Keep long term in mind while spending
As people are cash rich after retirement, the tendency is to splurge money on
frivolous things that do not have much value. One needs to curb this tendency,
and plan properly so that you are well-provided in your old age. With advances
in medical technology, the general life expectancy has increased remarkably,
and people don’t realize that they can and will longer than expected. However,
becoming infirm, or being struck by chronic diseases cannot be ruled out,
hence there should be enough buffer to handles such unforeseen
circumstances. Investing in a health insurance policy would certainly be a smart
idea.

8. Author bio
Ananya Shelters through its signature project Ananya’s Nana Nani Homes
envisages an adorable residence for the retired with best ever modern day
amenities and dedicated residential services to make life after 50s stress free,
self-reliant and enlivening.