Late 40 to 60 is the stage of life when most of your responsibilities are over. Children are ready to get a job or already got settled; you are also settled in your business or job. This is the right time to think about the investment for your post-retirement future and maximise your investments. Let us discuss the rationale behind this.

Expenses Are Reduced Drastically

A major part of your expense usually goes into raising children and their education. Education has become very expensive and so does the lifestyle expenses of children. It can eat up a substantial portion of your income. It can be a huge saving if you do not have to spend it anymore. The money thus saved can easily be put for your future planning.

You Have About 10-15 Years Of Job Left

There is no stopping you from working beyond your retirement age but most of the companies do retire people at the age of 60. So essentially you have around 15 years of remaining job life. You must save and invest the maximum possible amount because this will make the corpus for your retirement. The amount invested till now may not be sufficient. Maximizing investments during this stage can help leverage the additional income for long-term financial security.

Income Is Usually At Its Peak And Expenses Do Not Rise

While we cannot generalize this, it is true in most of the cases. At this age, work efficiency is high and the salary too also at its peak. Moreover, the expenses are constant. It does not go up at the same speed as your salary. Additionally, entertainment and travelling expenses go down because most of the places you have visited already. So, you should use the higher earning to build up greater wealth and a bigger retirement corpus.

Still Have Time To Put Money In Equity Or Long-Term Investment

Fifteen years is a long time and you can invest in a plethora of options including equities as still your risk appetite remains high. So, you explore investment options such as equity mutual funds and direct stock investments for generating a high return. Take the help of an investment advisor for better insight in sync with your requirements.

Sometimes people fail to save towards their retirement, for them, the empty nester stage is the best time to recoup the lost time and accomplish their retirement goal. This can help bridge the savings gap and accelerate retirement preparedness.

Finally, your children are there to support you anyway. While this may not be applicable or it may be risky to assume, this still gives us big relief thinking that there is someone in case of any financial need. So, use the maximum that you can save from income and invest. Even if you are already in the right direction to achieve your retirement corpus, the empty nester stage can be used to create a legacy that you can gift to the next generation.

The author is an Independent Financial Journalist