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<br>There are many changes that retirement brings. Financially speaking, here are the most interesting
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Enjoy higher tax exemption and interest rates You earn more interest on your deposits and being taxed less. Most banks offer higher fixed deposit (FD) rates for senior citizens. Not only you earn higher interest rates, your income tax exemption limit increases too — from Rs 2.5 lakh to Rs 3 lakh. Once you cross 80, your tax exemption goes up to Rs 5 lakh!
2. Know Your Inflation Rate While rising costs remain an issue, consumption pattern changes. In some categories such as transport/conveyance and entertainment, there would be a reduction in expenses, as you stop commuting everyday and spend more consciously. To read more on this see my article in the Economic Times. You may no longer be paying an EMI or rent when you are 60. Besides, your children, too, would be self-sufficient by then.
3. Healthcare Alert Healthcare costs could be a potential back-breaker. The costs in this segment have seen double-digit inflation over the past few years. As you grow, you require more of this service. However, staying healthy, having adequate health insurance and saving enough for your retirement are the best bets to combat it. You ought to have more time to take care of yourself and be less stressed!
4. Saving Matters Considering that many of us will live well beyond 70, it is important that we provide for it. The only way to do this is to start saving TODAY if you haven’t already. Find out how much you need to save
5. Do Things You Love To Do As you are out of that daily grind, free from other responsibilities, this is the right time to pursue your hobbies. Go out, explore the world, follow your passion, do everything you wanted to do but couldn’t because of certain constraints.
