How to manage your post-retirement finances ?
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How to manage your post-retirement finances ?

  • Highlights

  • Identifying actual and discretionary expenses

  • Keep a note of monthly withdrawals

  • Find out alternate sources of income

  • Avail tax sops and discounts to save money


During the sunset years of your life when the regular source of income dries up, money management assumes great importance. Prudent management of post-retirement finances ensures you lead a happy retired life.

Here are some common mistakes, you should avoid when planning your retirement:

Read about some of the best ways to manage your post-retirement finances:

Look for Alternate Sources of Income

An alternate source of income doesn’t necessarily mean you have to take up part-time work. There are multiple investment avenues that ensure you have a regular in-flow of money every month. It’s essential to explore these avenues and make prudent investment decisions.

You can take the help of a financial advisor to identify these investment vehicles and park your money to add to your retirement corpus.

Participate in investment with the power of information and preparedness. Make sure your financial goals align with your investment decisions.

You can consider investing in fixed deposits, for assured returns along with higher stability.

Make a List of Monthly Expenses

Take time to draw a list of your monthly expenses. After figuring out the amount you need every month, make sure you withdraw from your retirement corpus accordingly. Identify actual and discretionary expenses and try to keep the latter as low as possible. Keeping discretionary expenses low, will help you save money and ensure your corpus lasts longer.

Note that medical expenses will constitute a significant portion of your monthly cash outflow, post-retirement. Hence, it’s essential to keep a contingency fund in place, to address emergencies. A health insurance is an absolute must during this phase of your life.

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Measure Your Withdrawals

Keeping a close tab on withdrawals will help you sustain your retirement corpus for a longer period. Advances in medical science mean you may have a longer than expected retired life. Making random withdrawals will dry up your corpus faster and push you towards financial instability.

Making calculated withdrawals as per your needs, will prevent depletion of your savings during retirement. Depending on the amount you have in your kitty, fix a percentage of the money you’ll withdraw every month and stick to it.

Avail tax benefits and discounts, wherever possible

Note that retirees, who are mostly senior citizens, are given discounts and tax sops on investments, travel, purchase and a host of other things. Use them to your advantage to save money.

The money you save will give you build an investible surplus, an important element of financial planning.

Post-retirement finance planning should ideally start well in advance when you are in the earning phase of your life. An early start will not only help you meticulously plan your finances but also build a large corpus for this golden period.

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