Managing Money in Retirement Insurance Policy

1
Managing Money in Retirement Insurance Policy
2

• "After working for over 36 years in the civil
  service, I'm going to retire in a few months
  time. I feel a little confused about how to make
  sure my retirement money is properly invested.
  I'm also scared that my pension and savings won't
  be enough for my needs. What can I do to feel
  more secure in retirement?"
• In theory, retirement should be a time to relax
  and enjoy the fruits of your labour. In reality,
  many persons face retirement with fear, wondering
  if this change of life will bring better or
  worse. One of the biggest sources of concern for
  retirees is the uncertainty about money- how will
  they survive without a steady paycheck?

3

• Financial experts tend to give lots of advice on
  how to plan towards a successful retirement. But
  what about managing your money in retirement? How
  can you take control of your funds and be free to
  enjoy your new-found leisure time? Here are some
  steps that will help to put you in charge of your
  finances.
• Prepare For Your Pension
• Don't wait for the last minute to make sure that
  your pension is in order. It's advisable to apply
  for your retirement benefits one year in advance,
  since you work in the government service. This
  will ensure that as soon as your paycheck stops,
  your pension will take over. If you had invested
  in retirement insurance plans, speak to your
  agent several months before retiring, to ensure
  that your investments are on track. If you had
  been contributing to the National Insurance
  Scheme (NIS), visit the NIS office at National
  Heroes Circle to apply for your benefits.

4

• Budget Carefully
• Budgeting is the key to managing your retirement
  money. It's important to keep track of your
  monthly expenses, especially when you're no
  longer working. Estimate those inevitable costs
  like car insurance and repairs that don't occur
  regularly, and divide these figures by 12 to get
  the average monthly cost. Place spending limits
  on variable expenses like clothing and
  entertainment. Make large allowances for medical
  needs that may increase at this time, and include
  additional expenditure for healthier foods and
  vitamins.
• Your objective in preparing a budget is to
  calculate the average amount needed to pay your
  expenses each month. When you are clear about
  this figure, you will know if your pension will
  be sufficient, or if you will need to supplement
  it with your investments.

5

• Match Your Investments To Your Needs
• One of the most important objectives in
  Retirement Insurance Policy is the need for
  current income and liquidity. Your money must be
  providing steady returns, and should be readily
  available for any emergency. If you have problems
  meeting your monthly bills, it might be advisable
  to sell any long term assets like land or stocks,
  and place the proceeds on an account that will
  pay interest. Speak to your financial institution
  to get guidance on how to re-balance your
  investments.
• You will also want to invest in low-risk products
  that give higher returns than regular savings
  accounts. Once you have identified how much you
  will need for your monthly expenses, ask your
  advisor to show you how best to invest your money
  so that you can get enough interest.

6

• Seek Tax-Free Returns
• After years of paying taxes the last thing that
  retirees would want to do is to continue paying
  withholding tax on their savings. The government
  has made allowances for senior citizens to have
  taxes on income and savings exempted up to
  certain limits. Currently there is an automatic
  exemption of J193,440 per annum once you are
  retired, an additional J45,000 per annum if you
  are over 65 years old, and a further J45,000 per
  annum if you are a pensioner. Call the Taxpayer
  Audit and Assessment Department at 922-3470 or
  visit your nearest tax office for details on the
  documents you will need to apply for a tax
  exemption.
• These are just some of the ways you can take
  control over your retirement funds. Next week we
  look at how retirees can spend less money, and
  meet their needs by earning more income.

7
Follow us on
https//www.facebook.com/bajajallianzlifeinsurance
ltd
https//www.linkedin.com/company/bajaj-allianz-lif
e-insurance-co-ltd-
http//plus.google.com/bajajallianz/posts
https//twitter.com/bajajallianzLIC
https//www.youtube.com/user/jiyobefikar
https//instagram.com/bajajallianzlifeinsurance
8
Click to know more on Retirement Pension Plan
https//www.bajajallianzlife.com/retirement-plans/
retirement-plans.jsp
Thank You