Retirement Planning for Widows
When we imagine a widow in their retirement, we see their graying hair and slowing bodies. But when we take look at their situation financially then then need to support themselves financially say for around 40 to 50 years. Though, our culture in India is way different than that of western culture. Here still many people support their parents in their retirements. However, such dependency sometimes creates many family issues. Most of the times it is noticed that such issues are majorly due to their financial dependency. Therefore, it makes more sense to be financially independent. Below are few pointers that would help you to chart your financials in retirement.
The basics
Before moving on to investing and stuff it is better to get all the basics cleared. At first, know what all assets you own which also includes the assets that got transferred from your spouse after his death. Then also, make the list of liabilities that you and your spouse collectively had. When you have both the things with you, depending upon your assets get rid of liabilities first. Then plan for the remaining assets.
Understand expenses
It is really important to understand what your expenses are likely to be in retirement. Though, you might be staying with your kids, but while calculating the same you have to assume if you had to spend on yourself, what your expenses would look like.
Goals
The next step is to create your bucket list. Maybe you wish to travel around or cherish your hobbies, etc. Having this list will help you to channelize your assets in a much meaningful manner. Though, the emotional loss cannot be covered, but you living your life with happily would surely make your spouse even happier.
Healthcare expenses
Never ignore healthcare expenses. This is one of those expenses that would be crucial while in retirement. The reason for the same is that, health insurance becomes costlier while in retirement and also comes with a lost of terms and conditions which is not at all effective. Therefore, it makes more sense to keep aside a part for your assets for healthcare expenses. While keeping it aside invest in safe instruments such as bank fixed deposits. As they would not just protect your capital but also provide you with liquidity.