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Exit Guide

Dis-savings

This is the stage when you start withdrawing and spending from your retirement fund.

You have retired and are in old age at this stage. At this stage, it is important to plan how to efficiently use your retirement fund.

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Rekha says that at this age your expenses begin to look different. Radha explains that for example you may be spending more on medical expenses in old age than when you were younger. Rekha than says that your travel expense will come down and Radha says that you may also begin to spend a big chunk on paying existing loans

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So rekha suggest that you may have to re-adjust your mandatory expenses and radha further explains that you got to make use of government annuity schemes which will pay your monthly pension

Pro tip:

Along with your retirement fund it will be helpful to have some small source of income too during your old age.

So start thinking of alternative sources of income today.

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The 4 percent rule of retirement fund says that you should withdraw only 4% of the total retirement fund in year one and increase the withdrawal by 2% each consecutive year to judiciously save money

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    Points to remember:

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    Dis- Saving starts after your retirement.

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    At this stage, you plan to use your retirement fund most efficiently.

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    Take into account the changes nature of your expenditure.

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    Use the 4% rule for withdrawal in the first year.

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    Each year, increase the withdrawal amount by 2% to account for inflation.

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