Throughout our adult lives, the milestone of retirement gets rarely pushed into oblivion on the horizon of time. For many people, the thought of retirement evokes a sense of longing – after decades of pulsating through the nine-to-five grind, retirement sounds like the harbinger of a certain kind of serenity. While on another end of the spectrum there are others who view retirement with a sense of trepidation because the thought of a void left in the wake of a lack of work and a regular source of income can seem too daunting. Whichever lens it is through which you retirement, there is no denying that the quality of your retirement life is a function of how well you have planned for it and the health of your finances.

The coronavirus pandemic in 2020 has changed the face of retirement planning. Investments plans have been drastically impacted and many retirees are even dealing with emaciated pension pots caused by the economic downturn triggered by the global health challenge. While the economy is slowly inching back to normalcy and the markets are also showing some positive signs, the virus outbreak has surely redrafted the narrative around retirement planning.

Here are five things that have assumed renewed importance in the gamut of financial planning thanks to COVID-19.

Health is always wealth

In the early months of 2020 when the global population became acquainted with the health risks posed by the new virus, it became a starting point for a conversation on how staying healthy is an ongoing process. Doctors and public health officials reiterated messages urging people to embrace the tenets of healthy living and how that could strengthen our immunity and potentially save our lives. As people shared the traumatic experiences of seeing loved ones battle COVID-19 in hospitals and the saga of financial duress endured by the families of patients, it gave rise to the consciousness that staying healthy is imperative for ensuring financial well being also. Medical expenses are one of the most important and formidable chapters in retirement planning and by embracing a healthy lifestyle, you can curtail your hospital visits significantly and also prevent financial drainage.

Maintaining mental agility

According to the Retirement Readiness Survey conducted in 2018 by the Aegon Center for Longevity and Retirement, 22 percent of respondents acknowledged suffering from mental health issues and 14% from Alzheimer’s or dementia. Debjoti Nayak, a former government official at Coal India Limited who retired recently and lives in Kolkata narrates, “I live alone as my children are settled in different cities and my wife passed away a few years ago. Now that I have retired, the importance of staying mentally agile has assumed a whole new definition. As you age, your mental abilities do decline but there is a lot you can do to sustain your mental and emotional being because a slippage in cognitive abilities during this phase of life inadvertently means having to rely on caregivers which may not be affordable always. And it isn’t necessary either that your children will be in a situation to look after you.” Given that geriatric mental health care in India is still patchy, mental agility becomes an important determinant in ensuring quality of life post-retirement.

Unloading the burden of debt

Most of the conversation around retirement planning tends to be centered on choosing the right investment vehicles and adopting the right financial strategies but your best retirement plans can be blown to smithereens if high debt loads continue to bother you in your retirement years. Accelerating debt payments is of utmost importance to ensure that your financial situation is not dented post-retirement. This is because debt servicing, especially of high interest loans may become tricky with retirement income what with inflation pushing your expenses higher thus making it more difficult to stick to a budget. You may either be forced to tap into your retirement reservoir to clear those debts in which case your long term financial security may take a hit. Existing debt obligations may also impede your chances of accessing debt should there be an emergency in your post-retirement life.

Having realistic expectations from children

In India, the predominate social structures also have a bearing on retirement planning. According to the 71st round of the National Sample Survey (NSSO) between January and June 2014, only 23% percent of respondents were saving or planning to save for retirement. The report also found that in rural areas, 82% people above 60 were dependent on children for economic support while 80% were supported by children in urban areas. While children can undeniably be a great support system in one’s golden years, it is erroneous to not save and invest diligently for retirement thinking your needs will be taken care of by your children when you grow old. Arjun Chhabra, a practicing chartered accountant narrates, “Earlier when joint families were more prevalent, the support network was wider but now what with more and more Indians going the nuclear way, it has become uncommon for elderly people to be living alone. Hence, retirement planning has assumed greater importance. It is also unfair and foolish to expect your children to take care of all your financial requirements because one also needs to factor in the possibility of them being faced with an emergency or a job loss.”

The aegis of insurance

A dialogue about retirement planning is incomplete without factoring in insurance. Many people tend to make the mistake of viewing insurance only as a shield for their families against the loss of a breadwinner during their working years. However, contrary to popular belief the benefits of an appropriate insurance plan can go a long way towards sustaining financial health and the quality of the lives of you and your loved ones in the event of any emergency even after you have stopped working. With pension plans, add that extra level of security to your financial future and be prepared for any crisis that may surface in your post-retirement years.
So how does one ensure that you and your family enjoy the lifestyle standard you are used to when you stop working?
HDFC Life Click 2 Wealth is a sound life insurance plan can help you in achieving this! It offers returns linked to the market and of course, offers valuable financial protection for you and your loved ones. The plan has three options to pick from – the Invest Plus Option will give you the dual benefit of investment and insurance; Premium Waver Option offers safety for your child’s future and the Golden Years Benefit Option is the golden ticket to a perfect retirement life. The last one is a great choice for ensuring healthy sunset years in life.

If you opt for the Golden Years Benefit Option, then you pay premium for a limited term and enjoy a cover till the age of 99 years! And you can even go for Systematic Withdrawal of the accumulated fund to ensure you have a recurring post retirement income to carry you through your ‘Golden years’.

If you are on that end of the spectrum where the thought of retiring makes you queasy, then know that investing in the right product can make all the difference and ensure that you live a worry-free retirement life.