Know what can derail your retirement and how to respond to these risks
As you plan for your retirement, learn to expect the unexpected. There is a slew of post-retirement risks that could affect your family like the death of a spouse, market crashes, a lengthy illness and more. As more retirees live longer, and in some cases, are forced to retire earlier, the risk of outliving your retirement corpus only increases. The more this period of retirement grows, the harder you might find it to be certain that your assets are adequate for your lifestyle. In case you were putting off this financial planning, here are a few risks to be wary of and how you can respond to them.
Some Types of Post-Retirement Risks
Employment risk:
It’s common for most retirees to aim to supplement their income either by working part-time or full-time after their retirement age. Some organisations may also choose to hire workers that are older due to their stability and immense experience. Note that, however, to be successful in the job market you also need technical skills some retirees may not easily gain or maintain.
For this reason, the prospects of employment among retirees can vary greatly. Picking the point at which you wish to retire wisely is key to successful retirement planning. Although retiring later is one alternative to saving sooner, there is no certainty that appropriate employment opportunities will remain available to you.
Longevity risk:
Another risk that comes with retirement age is that of your savings running out. With life expectancy rising every year (a great feat on its own!), the age at which your savings begin for retirement should be dropping in succession. With longer life, it is not just that your savings can run out. The longer you live, the likelier you are to experience some of the other risks mentioned in this list. Hence, longevity risk is not one to be underestimated.
Some of this post-retirement risk may be mitigated through a pension or annuity plan. These types of plans provide a lifetime income stream. They can definitely ease the financial burden that can come with retirement living. Another key thing to practice is being mindful of your savings. By spending too much too soon, you can risk running out of your savings. Retirement spending is definitely a balancing act of enjoying your fruitful years, while also ensuring your savings are intact.
Healthcare risk:
A big concern for most retirees is unforeseen medical bills. Older people have greater healthcare needs and are more prone to developing chronic illnesses that require active management. From the cost of medication to hospitalisation bills eating up one’s savings, there might be little left to support a retiree’s day-to-day, in case they didn’t see these costs coming. This risk may be mitigated by opting for a comprehensive health insurance policy and starting one’s retirement planning early.
Inflation risk
One of the most common financial risks afflicting individuals post-retirement is inflation. For anyone living on a fixed income, inflation should be an ongoing risk that needs to be accounted for. Even relatively low inflation rates can easily erode the well-being of retirees, so if you just imagine a period of high inflation, the consequences are expected to be devastating. To combat this, investing in asset classes that have historically proven to beat inflation like equity mutual funds, and growth stocks early on in one’s career is a wise move.
Things to Do After Retirement
Retirement marks the beginning of a new chapter filled with the freedom to explore interests, enjoy leisure, and pursue personal growth. For many, it’s a welcome pause after decades of working, while for others, it can be an uncertain transition. The key to a fulfilling retirement lies in staying active, engaged, and purposeful.
Here are some meaningful and enjoyable ways to make the most of your retirement years:
Travel and Explore
Retirement gives you the opportunity to travel without being tied to a work schedule. Whether it's international trips, domestic getaways, or short weekend excursions, travelling helps you discover new places and cultures. Make a travel bucket list and prioritize destinations based on your interests, mountains, beaches, historical places, or spiritual retreats.
Travel not only refreshes your mind but also gives you new stories, memories, and perspectives. With thoughtful financial planning and a steady pension plan, travelling becomes more accessible in your golden years.
Reconnect with Hobbies
Many retirees finally find time to reconnect with hobbies they had put aside during their working years. Whether it’s painting, gardening, writing, knitting, or playing a musical instrument, hobbies help reduce stress and keep your mind sharp.
Starting a new hobby or revisiting an old one can bring immense satisfaction. It provides structure to your day and helps you feel creatively fulfilled.
Become a Mentor or Life Coach
If you’ve spent decades in a profession, retirement doesn’t mean your knowledge becomes irrelevant. Share your experience by mentoring younger individuals, whether in your previous field or through life coaching. It can be done through online platforms, educational institutions, or community mentorship programs.
Mentoring brings a sense of purpose and allows you to continue making a difference, long after you’ve left the workforce.
Tutoring or Teaching
Teaching is another way to stay intellectually active and involved. If you have expertise in subjects like mathematics, science, or languages or even life skills like cooking or public speaking, you can offer tutoring services to students.
This can be done online or in person, and it gives you the satisfaction of nurturing young minds. Tutoring also helps keep your own cognitive abilities sharp and engaged.
Volunteer and Give Back
Retirement is a great time to get involved in causes close to your heart. Consider volunteering with local NGOs, hospitals, schools, or animal shelters. You can also participate in pro bono work where your professional skills can help non-profits or startups.
Volunteering builds community connections and gives you a deep sense of fulfilment. It’s a great way to remain active, social, and useful in society.
Learn a New Art Form
It’s never too late to learn something new. Take up painting, pottery, photography, dancing, or any other art form that interests you. Many community centres and online platforms offer beginner-friendly classes for seniors.
Practising art is therapeutic. It fosters creativity, improves memory and focus, and gives you a productive outlet for self-expression.
Embrace Lifestyle Activities
You might enjoy activities like baking, pottery, gardening, or horse riding. These lifestyle interests not only keep you busy but also add fun and flavour to your daily routine.
Trying out new things like cooking different cuisines, planting a vegetable garden, or making handmade crafts can be deeply satisfying. Some of these hobbies could even turn into small-scale businesses or social enterprises.
Prioritise Health and Fitness
One of the best things to do post-retirement is to focus on your physical well-being. With more free time, you can adopt a regular fitness routine tailored to your age and health. Consider low-impact exercises like yoga, swimming, tai chi, or brisk walking.
Being part of a sports group or fitness class helps maintain physical health and also builds new friendships. Regular exercise boosts mood, mobility, and overall longevity.
Popular fitness activities for seniors:
Outdoor biking
Water aerobics
Group yoga sessions
Light strength training
Dance classes like Zumba
Enjoy Leisure and Entertainment
While structured activities are important, don’t forget to enjoy unstructured leisure. Read books, solve puzzles, explore documentaries or classic films, or try your hand at board games or Sudoku.
Entertainment keeps you relaxed and mentally stimulated. It’s also important to set aside time to simply rest and recharge when needed.
Secure Your Retirement with Our Pension Plans
Retirement is your time to relax, explore, and enjoy life without financial stress. But to truly make the most of these years, having a steady income is essential. That’s where our pension plans can help.
A well-planned pension acts as a reliable source of income after you stop working. It gives you the freedom to pursue hobbies, travel, volunteer, or simply enjoy leisure time without worrying about day-to-day expenses. Whether you dream of taking long vacations, spending time with family, or picking up a new skill, financial stability makes it all possible.
Bajaj Allianz Life Insurance offers a range of retirement and pension plans designed to suit different needs. From guaranteed income options to plans that help you build a retirement corpus over time, you can choose what works best for your lifestyle.
With features like regular payouts, tax benefits, and flexible premium payment terms, our pension plans ensure that your golden years are worry-free and fulfilling.
Secure your future today so you can focus on doing more of what you love after retirement. Explore our retirement solutions and take the first step toward financial freedom.
Conclusion
Unexpected events can derail even the best-laid retirement plans. But that’s where smart preparation comes into the picture. Adopting the mind set of expecting the unexpected is the best move anyone can make when planning for retirement. With careful and calculated planning, after preparing for all potential risks, you can ensure the post-retirement life is smooth.
FAQs
What can I do after retirement?
After retirement, you can travel to new places, pursue hobbies like painting or gardening, teach students, mentor others, or join social service initiatives. It’s the perfect time to explore things you didn’t have time for earlier. Staying mentally and physically active will make your post-retirement life meaningful and enjoyable.
How to enjoy life after retirement?
To enjoy life after retirement, get involved in activities like yoga, meditation, domestic work, and volunteering. You can also engage in hobbies like reading or writing. Staying connected with family and friends, pursuing creative interests, and staying physically fit can help you lead a joyful and balanced retired life.
What to do when you first retire?
When you first retire, organise your finances by reviewing your savings, pensions, and investments. Ensure you have a monthly budget in place. Once your finances are settled, explore enjoyable activities such as travelling, learning new skills, or spending quality time with family and friends to start this new chapter positively.
What to know before retiring?
Before retiring, take stock of your finances, including savings, pensions, and insurance policies. Understand your monthly expenses and plan a budget. Ensure all valuable assets like jewellery or antiques are secured. Proper planning will help you transition smoothly into retirement without financial stress or lifestyle compromise.
What is the best age to get retired?
The ideal retirement age is usually 65 or 66 years, but it depends on your financial readiness and life goals. Some may choose early retirement for a relaxed lifestyle, while others may continue working longer for financial security or passion. Choose what aligns best with your personal situation.
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