Who says, you can’t predict future? With the proper analysis and thinking, you can predict the future events also. Just like, you can know about expenses which may arise in 2040. Life changes in a minute, and it holds true when it comes to expenses. There may be some expenses which do not exist today but will make a hole in your pocket by 2040 or when you retire. Have a look:
Health Expenses: The advancement of medical technology ensures that you will be living longer than your forefathers. Unfortunately, this longer life comes at a heavy cost as medical expenses have been rising at a great pace. The cost of treatment has increased at a double-digit pace of growth both in India and urban segments. In the current times, a simple hospitalization can set you back by Rs 60,000 and Rs 1 lakh. As older people need more medical care than younger people, the situation may become worse in the future when your health may deteriorate, and you become more susceptible to ailments.
Travel Expenses: During your working years, your travelling is mainly limited to your daily commuting to the office and yearly vacation plan. Come retirement; you have the freedom to take off and visit the places that have been on your wish-lists for many years. It means you will be on the road for a longer period. These costs can take up a large part of your budget than what you have anticipated.
Gift Expenses: By the time you enter 2040, your kids may get married or financially independent. Weddings, grandchildren— all these happy events will require gifts, travelling, and other expenses. Also, it’s not uncommon for an adult child to face life’s crisis, like a loss of job, divorce or a health issue. You may want to help you out your children financially until they get back on their feet again.
Accommodation Expenses: Will you live independently or in a retirement home? In any case, you need money to sustain your life post-retirement. Though you might be financially independent at the time of retirement, how will you manage when your grown-up children move to another city or nation for work? At that time you may require shifting into retirement homes which are equipped with facilities like personal assistance, round the clock medical service, housekeeping staff, etc.
Even if you decide to stay in your home, you need to equip your house with safety mechanisms to secure it from thieves. Further, your home has a list of components like the roof, heating appliances, fans, appliances, etc.; which could fail at any time. Also, you’ll have to find someone to take on home maintenance chores which you used to do by own, like cleaning, mopping, etc.
Where is the Solution?
While it is not possible to completely avoid these expenses from arising in the future, you can take some steps today to prepare yourself against them. A retirement insurance plan is one such plan which gives financial protection to secure your retirement life. When you buy a retirement plan, a part of the premium is invested in equities to generate high returns which will help to tackle unforeseen costs which may arise in the future. When you get retired, the insurer will give you an amount to take care of your expenses. Further, the guaranteed feature of this plan ensures that your money remains safe, and
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