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Nearing retirement (5-10 years away)

Nearing retirement (5-10 years away)

If you’re nearing retirement, find out if you’re ready to retire now.
Prepare for what’s ahead >>

With retirement on the horizon, it is time to revisit your retirement strategy and make any adjustments. Also, now is the time for you to protect and maximize your savings and returns as much as possible. Take advantage of key savings and contribution strategies to help you get there smoothly.

Here are some ways to check if your savings and investments are on the right track for a financially secure retirement:

Save and invest now

  • Understand the financial risks that can affect your retirement
  • Control spending now to add to your retirement savings
  • Revisit your retirement strategy and make any adjustments
  • Maintain an adequate cash reserve, typically covering three to six months of expenses as minimum base liquidity.

Manage your investments

  • Make sure you have the right asset allocation and investment mix which is not too conservative as it may not outpace inflation; and not too aggressive as it may unnecessarily increase risks.
  • Aim to maximise returns by focusing on the right investments vehicles at this stage.
  • Adjust your portfolio to ensure that it is diversified and keeping pace with inflation.
  • Take into consideration attributes such as cash flow, liquidity and tax implications.
  • Discuss your retirement income strategy with your retirement planning advisor, including a withdrawal plan.

Plan your retirement

  • Begin to think about when you want to officially retire.
  • Review your retirement goals and expectations with your retirement advisor.
  • If you foresee an imbalance, discuss and make adjustments working with your retirement planning advisor.
  • Talk to your spouse or family members about how you might handle unexpected events.
  • Manage your expenses and evaluate opportunities to increase your savings.
  • Know your possible sources of retirement income and start planning towards the same.

Have a question? Write to us at inquiry@principalindia.com.


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