Retirement planning is all about building a financial corpus that can sustain you till death. While this goal may be the same for all, the selection of investment tools and the approach towards finances can be different, depending on their age, income, and socio-economic background. Here are five factors to consider while planning for retirement which will ensure a steady Cash Flow Post-Retirement.

Building A Corpus Fund 

Building a retirement corpus that can sustain you till your last breath requires proper planning. Estimate the corpus you will need, factoring in post-retirement expenses and inflation. After you have identified your financial needs, invest regularly in instruments that can help you reach your goals easily. If you invest in the stock market, you may have a compounding advantage. So, invest in the chosen assets regularly, regardless of how small the invested amount may be. In the long term, it will reward you more than you would have imagined.

Choose Investing Tools Carefully 

Invest in instruments that give your regular cash flows, in line with your financial goals. Depending on your financial target and risk tolerance, invest in a mix of debt and equity instruments to balance the growth and stability of the investment portfolio. For instance, debt instruments can be government bonds, debt and equity mutual funds, exchange-traded funds, (ETFs), bank fixed deposits, etc., which can generate returns as well as provide protection against market volatility. The idea is to generate inflation-beating returns in the long run.

If you have just started your career, the national pension system (NPS), provident fund, and other small savings schemes can be explored to ensure cash flow post-retirement. If you have crossed 60, you can invest in the senior citizens savings scheme (SCSS) that gives guaranteed income. You can choose your payment due dates on a monthly or quarterly basis.

Withdrawal Plans 

Plan your withdrawals from schemes carefully, in line with your financial needs. For instance, you can take a Systematic Withdrawal Plan (SWP). If you have invested in an equity mutual fund, avoid redeeming funds when markets are down. If you have fixed deposits and want to withdraw prematurely, then choose the one offering lower interest rates.

Factor In Health

Medical costs have grown manifold over the years, so ensure there is sufficient health insurance coverage for your hospital bills. It will ensure that you won’t need to tap into your retirement funds for such expenses. Besides health insurance, keep some spare amount for emergencies.

Delay Retirement Benefits 

Delaying the withdrawal of retirement benefits will allow your investments to grow further. Besides, if you are physically fit, you may want to continue working for a few more years. It will also help keep your body and mind fit.

Finally, nobody wants to run out of money in old age, so plan your finances well for retirement.