Chandigarh : If you are about to retire, start planning for it well in advance as it will help you prepare to deal with situations like sudden need of money post retirement. At the same time, health problems increase with age and money earned on retirement goes towards hospital expenses. Therefore, a specific strategy should be devised on how to effectively manage the financial link between retirement and health problems.


Make financial plans close to retirement

One can save huge amount for retirement by investing in equity funds, stocks etc. But about three years before retirement, one should withdraw long-term deposits in equity funds and invest in debt funds. The exit rate greatly affects your retirement portfolio. In that case, you should estimate the net profit after tax on your post-retirement expenses and investments, as it affects how much you withdraw each year.



health insurance near retirement

Old age can lead to health problems like diabetes and high blood pressure. In addition, the treatment of health problems is expensive and lengthy. In that case, you should take a senior citizen health insurance plan when you are nearing retirement.

Even if you have co-morbidities and have a pre-existing disease, you can still get a senior citizen health insurance plan. For example, most senior citizen health insurance plans have a waiting period of 2 to 4 years for pre-existing diseases. You will also get cover for these after the waiting period.

Many senior citizen health insurance plans offer co-pays for people with health problems. Whenever you make a claim, you have to pay a portion of the cost of the treatment. Always choose a co-pay if you have a chronic illness. In this case, insurance companies are willing to insure you, as you pay a portion of the cost of hospitalization.


Pay off debt and put some money in equity

You should not take unnecessary risk with your money as you approach retirement as a wrong investment decision affects your retirement planning. However, you can invest a small part of your corpus in equity or hybrid funds. This increases retirement income and can be effective in combating inflation over time. Most importantly, all debts must be repaid before retirement as even a good retirement plan is lost due to outstanding debts.