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How to Live Happy and Comfortable Life Style after Retirement - What to do after reaching Superannuation in India
Hello Pension–Bye Bye Tension – Life after Retirement in India:
Introduction : You are not alone
Today there are more than 12 crore persons with age above 60 years which means that about 10% of the total Indian population. Approx. 7.5 lac employees from Central, State and PSU’s are retiring every year. Thanks to the EPS scheme 1995 that employees from the Private Sector are also getting the retirement benefits otherwise a large number of retirees from Private Sector might have been leading a miserable life. Now the NPS and Old Age Pension schemes introduced by Government of India might cover even the employees in the non-organised sector, labour or even farmers and businessmen above the age of superannuation. Current medical reports say that a pensioner’s life span increases significantly as compared to retirees not receiving pension.
What to do after retirement:
Basically one has three needs after retirement to lead a happy life. Firstly sufficient income to lead a satisfied life style, Secondly to love and to be loved, and thirdly to feel that one’s retired life is utilized to achieve one’s own set targets.
Retired life can be comfortable but financial difficulties can arise which can add to sufferings, illness and loneliness. Though we dream of happy future but one must be prepared for the worst.
Preserve the following documents carefully :
- Details of Bank Lockers, Key Numbers and upkeep of Keys.
- Details of Bank Accounts and other investments.
- Proper upkeep of Cheque Books, Share certificates, Demat accounts, Life Insurance Policies, Health Policies along with 3rd party ID Cards, Pension Papers, Recoverable and Payable money from/to friends and relatives, Title deeds of Property, General Power of Attorney if given to anyone, Original Will (Execute if not already done) etc.
- Proper upkeep of Password of email ID, ATM and Credit Cards, Bank accounts, online profiles, net banking, life insurance, vehicle insurance, Demat trading accounts, Income Tax e-filing, and other valuables.
- Ensure nomination in all investment accounts, lockers, Insurance Policies and Digital Assets. As far as possible all the investments be in joint names of self and spouse with nomination registered in every account. Ensure documentary evidence for registered nomination. One can cancel and re-register the nomination during the currency of investment.
- In the modern era the new concept of keeping the online Social Profiles, email ID's, Facebook data secure and nominated is gathering momentum and even the great Google has introduced the Inactive accounts manager so as to enable nominated persons to access your Digital Assets, Email ID's and Social Profiles. Social Networking Sites like Facebook are yet to facilitate smooth transfer of profiles of expired persons to their legitimate heirs for preservation after locking those social profiles for any further posting or editing after the death of Profile Owner as editing the profile posthumously will tantamount to tampering of history.
- You may also like to train your legal heirs to withdraw money from your account after your death from net banking channels so as to avoid legal hassles as the national governments have not made changes in IT or Banking Laws to take punitive actions on such illegal withdrawals.
- Nomination does not legal right to the nominee and legal heirs can claim money from the nominee. To ensure that your wishes are fulfilled after your death – one must execute registered/unregistered will.
- While making will take care of the following: (It must include):
- Will comes into force only after the death of the executor of the will.
- Will can be changed or amended by the executor at any time.
- Will must be revocable.
- Will is governed by Indian Succession Act,1925 except for Muslims who can make a will as per their Personal Law.
- Will must include the name and address of the executor.
- Mention in the will that it is made out of Free will, without pressure and with a sound mind.
- Use clear and meaningful language.
- Details of Property, for which will is created, be made an integral part of the will.
- Registration of will is optional.·In case of any complication or doubt, legal expert services can be taken.
Golden Rules for Aging Gracefully
Useful Tips for Pensioners
- Ensure Monthly Income – Pension and Interest on secured investments.
- Medical-Health Insurance of self and spouse is a must as in old age expenditure on medical expenses is uncertain and can make the life miserable if not adequately insured.
- Provision for marriage expenses of unmarried children and impact of this expenditure on Monthly Income as per (1) above.
- Due to inflation and devaluation of currency the purchasing power of a unit of money is declining daily. Out of monthly income one has to save and add to investments so as to increase the monthly income to an extent that nullifies the impact of inflation and devaluation.
- Liquidity of the investment is very important.
- Risk taking capacity decreases with the increasing age and one should avoid taking risks with his/her lifelong savings.
- You must take care of your life long capital by ensuring:
- To remain healthy-make it a habit to morning/evening walks with light exercises.
- After retirement, you are tension free. Utilize your time as per your interests. Pursue one or more hobbies to pass your time.
- Be social and do something for the society so that others can benefit from your vast experiences.
- Pensioners may invest 65% of their investible funds in low risk, 30% in Medium Risk and 5% in high risk categories. There are no Zero Risk investments and such investments are called Low Risk investments.
- Non-Pensioners may invest 85% in low risk and 15% in Medium Risk.
- High Net worth Individuals can invest 60% in low risk, 30% in medium risk and 10% in high risk categories.
- You must take care of your life long capital by ensuring:
- Maximize returns on investments without taking any risk.
- Minimize risk of capital loss. Keep away from stock market or related products.
- Invest in such a way that you get the maximum income tax free interest income.
- Separate capital for unforeseen circumstances.
Have you nominated your Assets including Digital Assets
Nominate your Digital Assets also Timely
Due to modernization and online culture more and more physical assets are being converted into Digital Assets. Retired and Senior Citizens being owners of such digital assets are not familiar with the system and procedures to pass on their digital assets to their legal heirs. In the future even your email ID's, Author Profile ID's on various sites, generating passive income may not find their legal successors. Even dedicated Mobile Numbers authorised to receive OTP or 2-step security passwords might also come with the option to have secret nomination of Mobile Chip to access the online accounts. Keeping in view the complexities involved as a senior citizen you will have to ensure that you have nominated for all your online profiles and digital assets along with supported mobile Chips.
© 2012 Ashok Goyal