Are You Really Ready to Retire? Let’s Double-Check

Retirement is a big milestone. After years of working hard, it’s a time to slow down and enjoy life on your own terms. But before you step away from your job, it’s important to make sure you’re truly ready, not just emotionally, but financially too.

Whether you’re approaching the usual retirement age or considering early retirement, here are some important things to do before retirement to ensure a smooth transition.

1.    Are You Financially Ready?

The first and most important step is checking if you have enough money saved up to live comfortably in retirement.

Ask yourself: How much money will I need every month after I retire? This includes everyday expenses, medical bills, travel, and other goals like helping your children or supporting causes are-you-really-ready-to-retire-let’s-double-check you care about.

Next, look at your current savings and investments. Will they last 20 to 30 years or more? You’ll need to factor in inflation too; things are likely to cost more in the future than they do today.

It’s wise to learn how to invest for retirement in a way that balances growth with safety. Also, account for your sources of income: will you receive a pension, EPF, NPS, or rent income? Attempt to use a retirement calculator or consult with a financial planner to get a better idea.

Source: NISM

2.   Don’t Ignore Health Insurance

One thing people often overlook is health insurance. Once you retire, you might not be covered by your company's health plan anymore.

Satish Gidugu, the CEO of Medi Assist, says that the rate of healthcare inflation in India is now roughly 12–14% per year, which is far higher than the rate of general inflation. Medical expenses are increasing each year, and as you get older, chances are that you'll need frequent check-ups, treatments, or hospitalization. You should have a good health coverage policy that includes senior citizens and pre-existing illnesses.

If you already have a policy, review it. If not, consider buying one now: the earlier, the better, as premiums tend to rise with age.

Also read: Retiring in India: How Much Is Really Enough?

3.   Think About Your Day-to-Day Lifestyle

Retirement isn't simply a matter of having sufficient funds, it's also about what you're going to do with your time.

Do you wish to stay in the same city, or relocate to somewhere peaceful? Do you want to travel further, take up a hobby, or spend more time with your family? It will all impact your monthly expenditure.

Try writing down your expected expenses post-retirement. Include food, travel, entertainment, healthcare, and home maintenance. Then make a budget that you’re comfortable with.

4.   Plan Your Withdrawals and Taxes

Another important aspect is how you’ll withdraw money from your savings and investments. If you take out too much too soon, your funds might not last.

Plan a steady income flow. For example, you might use a Systematic Withdrawal Plan (SWP) from mutual funds, or take monthly income from a pension scheme. Just remember, some withdrawals are taxable, especially from EPF, annuities, or capital gains.

For example, look at the following illustrative spread out for a SWP plan using the Systematic Withdrawal Plan Calculator:

Source: Mutual Funds Sahi Hai

Understanding how different withdrawals are taxed can help you reduce your tax burden and make your money last longer.

5.   Get Your Legal Documents in Order

Retirement is also a good time to make sure your legal documents are in place. This includes writing or updating your will, setting up a power of attorney, and keeping your financial records organized.

Having a clear estate plan helps avoid confusion or disputes later on. Discuss your choices with your family members, it gives everyone peace of mind.

6.   Prepare for the Emotional Shift

Lastly, retirement isn’t just a financial change, it’s also an emotional one. After years of a busy routine, some people find it hard to adjust.

The key is to stay active and connected. You can volunteer, take up a new hobby, or even work part-time if you want to. Having a sense of purpose goes a long way in keeping you happy and healthy.

Final Thoughts:

Retirement can be one of the most rewarding phases of life, but only if you have a proper plan for it. From your finances to your lifestyle, health, and relationships, every part needs a little attention.

Need help figuring out what’s right for you? At PD Wealth, we offer personalized retirement and investment guidance to help you make confident, informed decisions.

FAQ's

Q.1 What is the best age to retire?

Ans: There’s no one “best” age to retire, it depends on your finances, health, lifestyle goals, and family needs. However, many people aim to retire between 58 and 65, when they’re eligible for pension benefits and senior citizen perks in India.

Q.2 What are the different types of retirement plans?

Ans: Retirement plans include EPF, PPF, and NPS for long-term savings, annuity plans for regular income, and mutual funds for growth. Atal Pension Yojana (APY) is for low-income workers. Each plan offers different benefits, so choose based on your needs and goals.

Q.3 What is the 80% rule for retirement?

Ans: The 80% rule for retirement means you should aim to have enough savings to replace 80% of your pre-retirement income. This helps you maintain a similar lifestyle after retiring, assuming some expenses will reduce, like work-related costs.