Most people – including 34 year old bloggers underestimate the amount of money needed for retirement. This is also because they may not have seen anybody struggling with their finances in their 80s or even 70s. Lets look at some of them:
- Housing: In case you are living in a cold climate like Delhi, you may want to a warmer climate for the winters. How will you manage that? Will you buy another house say in Mumbai or Chennai where you can stay in winter?
- Medical Premium will keep going up and at some specific age, the cover itself will not be available. Also the medications that have to be done at home are anyway not covered by mediclaim.
- Healthcare for senior citizens is not easily available and there is a huge shortage of hospital beds. So availability of good medical care at a reasonable price will increasingly become a challenge.
- Taxes: Many senior citizens have a very poorly managed portfolio. Bank interest are the WORST kind of income on which to pay Income tax. However, shifting to debt and balanced funds can help – but you need a good IFA / CA to help you in such matters.
- Food: Most old age homes (I will be living in one) have a good range of food available, but you will not be able to control the pricing – your eating less or more will not change what you pay for the food. If you are living on your own you will have to make sure that you are not eating out at expensive places.
- Emergencies: right from medical, plumbing, electrical – all services are getting more expensive, you need to provide for these too.
- Entertainment: Suddenly at 58 you are unemployed and perhaps unemployable -with huge amount of time on your hands. So you will look for entertainment – movies, travel, what have you. These things are not inexpensive. Needs a lot of planning and executing expertise.
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