A new chapter of life unfolds when you enter your 60s. It can be a newfound freedom for people with a financially secure future. Having a realistic vision and a well-planned financial portfolio could be your key to a successful retirement. Making a major life change at the age of 60 can be stressful. Here are some tips for streamlining your finances.
Imagine waking up in the morning without the hustle and bustle of a monotonous life and enjoying the beauty of little things that spark joy in your life. That’s what a financially secure future is all about. A financially secure future gives you the freedom to live life to the fullest. So, are you financially prepared for your new beginning? Begin your retirement planning early and choose investment options aligned with your income needs and risk appetite.
1. Regular Returns
Having a regular income in your 60s can be extremely helpful in leading a financially independent lifestyle. The true essence of financial planning lies in the ability to have predictable and relatively stable income streams during your 60s. One commonly preferred fixed-income avenue is a fixed deposit.
By investing in non-cumulative fixed deposits at a time for a longer tenure, one can earn an attractive regular income. Some NBFC fixed deposits may offer comparatively competitive interest rates, depending on tenure and credit profile. Investors should always evaluate the credibility and ratings of the financial institution before investing.
2. Long-Term Financial Investment
Investing with a long-term perspective can support financial stability in your 60s. A flexible long-term financial investment can also come in handy in times of financial emergency. Instead of letting one's savings sit idle in the savings account, one may consider allocating a portion to relatively low-risk fixed-income options such as fixed deposits. Having funds that grow steadily over time at a predetermined interest rate can help create financial discipline and clarity around future income expectations. However, it is important to align tenure and liquidity needs before committing to long-term deposits.
3. The Risk Return Spectrum
The risk-return spectrum is one of the most significant factors that one needs to consider while planning a financial investment in the 60s. Higher-risk investments may offer the potential for higher returns but can also experience price volatility and capital erosion. Therefore, many retirees prefer allocating a larger portion of their portfolio to relatively stable and income-generating investments.
4. Emergency Financial Funds
While planning your finances at 60 having a lump sum set aside for financial emergencies is extremely important. It is advisable that one needs to have at least 6-7 times their salary amount in the form of emergency financial funds during retirement. You can also opt for investing in flexible fixed deposit plans. By investing in a fixed deposit, funds can grow at a predetermined rate, and during financial emergencies, one may avail of a loan against the FD instead of breaking it, subject to eligibility and terms. Premature withdrawal is also permitted, although it may attract a penalty as per the issuer’s policy.
5. Inflation Protection
Inflation can erode purchasing power over time, making it crucial to choose investments that outpace rising costs during your 60s. Opt for fixed deposit schemes, which offer competitive interest rates, with additional benefits for senior citizens and women depositors. These rates help maintain real returns while providing stability, ensuring your savings retain value for essentials like healthcare and leisure.
Conclusion
Being financially independent boosts your confidence and prepares you for the transition that occurs during retirement. The best gift during your 60s would be a stress-free and relaxed retirement life. Consider investing in a Shriram Fixed Deposit to add stability and predictable returns to your retirement portfolio.
Pro tip: Before deciding which FD plan is suitable for you, use the Fixed Deposit Interest Calculator to estimate your maturity amount and interest based on tenure and deposit amount.
FAQs
How should one's investment portfolio look like at 60?
Asset allocation at 60 should depend on individual income needs, risk tolerance and retirement goals. Many retirees prefer allocating a larger portion to relatively stable fixed-income instruments while maintaining limited exposure to growth assets.
What is the age of retirement in India?
The age of retirement for a citizen of India is 58 to 60 years, which differs depending on the employment sector (private or government).
How much money should I have post-retirement?
The required retirement corpus depends on lifestyle, medical expenses, inflation and longevity expectations. It is advisable to consult a financial advisor to determine an appropriate savings target.
Which scheme offers the highest interest rate to senior citizens?
Many banks and NBFCs offer additional interest benefits for senior citizens on fixed deposits.