With no monthly paycheque, financial planning is the only way to live your dream retirement life. Contrary to popular belief, you don’t need to be a finance expert or build a vast portfolio to achieve financial security. As long as you get the basics of money management right, you should be able to live a comfortable and independent life after retiring.

Here are five expert money management tips to assist you in this journey of building and living your dream retirement life-

1. Start with a Budget

It is commonly believed that the monthly expenses fall drastically after retirement. While some expenses such as transportation costs will fall, many others like medical expenses will rise. Budgeting is one of the most effective ways to make your retirement savings last for a longer duration.

Creating a monthly budget will enable you to prioritize the expenses and eliminate ones that are not essential. Adjust the budget as per your pre-retirement and post-retirement life to make the most of your savings and investments.

2. Focus on Post-Retirement Income Sources

As you’ll no longer be employed, you’ll be relying on your savings and investments for all your expenses after retiring. But rather than exhausting your savings, look for ways to earn a regular post-retirement income. You don’t have to remain employed in order to continue earning.

There are several investment options such as Fixed Deposits (FDs), debt mutual funds, rental income from property, etc., that allow you to earn a consistent income. You can also consider investing in a retirement or pension plan to generate regular income.

3. Purchase Health Insurance

Life expectancy and medical inflation are consistently rising in India. As you grow older, the healthcare expenses will increase and could consume a significant portion of your savings. By purchasing a health insurance plan, you can protect your savings against high medical expenses.

You can also consider a family floater plan to secure the health of your family members and ensure that illnesses even among the family members do not impact your savings.

4. Be Tax-Smart

The income tax laws in India allow a host of deductions and exemptions on purchases and investments. Moreover, seniors are offered additional tax benefits. After retiring, you can adjust your investment portfolio to take maximum advantage of these policies.

The higher the tax savings, the more amount of money you’ll have for your retirement. You can consult a tax advisor to benefit from such senior-friendly tax policies.

5. Review Your Retirement Plan at Regular Intervals

It is also essential to review the retirement plan at regular intervals. For instance, you might be required to adjust your investment portfolio to maximize the returns potential. The professional assistance of an investment advisor is highly recommended to generate better returns.

It is also wise to repay your loans before retiring, as the EMIs would only be an additional burden on your savings.

Managing Your Money Wisely for Retirement

Smart money management is all about adopting positive habits. While you can now find all the information you need within seconds, it is always better to trust the experience and expertise of a professional advisor for making decisions related to money management and retirement.

The tips discussed in this post can add plenty of financial stability to your pre and post-retirement life, enabling you to live more confidently, comfortably, and independently.