Everyone has travel plans. Some can fulfill them during the working years while others have to keep them aside due to lack of leaves or financial problems. Traveling post-retirement can achieve your dreams in the retirement phase, and what is the harm in planning for retirement travel instead of getting bored at home? However, before planning such a retirement travel plan, you must consider many things.
To travel, you need money, and after retirement, the National Pension System benefits you. The National Pension System in India is based on a unique permanent retirement account number allotted to everyone. To encourage savings, the Government of India has made a scheme reaction from a security point of view that it offers attractive benefits to all the NPS account holders.
Why is NPS considered beneficial?
Here is how the NPS scheme benefits the account holders:
- NPS is regulated by the Pension Fund regulator under the Ministry of Finance Government of India, which ensures that there are transparent norms governing the activities. NPS trusts in the adherence of the guidelines to regular monitoring.
- It is a voluntary scheme for all citizens of India. You can invest any amount in your NPS account when you have the flexibility to select and change the point of presence investment pattern and fund manager. It ensures optimum returns as per your comfort with various asset classes.
- NPS is one of the lowest-cost investment products available
- The average NPS returns depend upon the different tiers you invest in. For instance, Tier 1 has returns of 15.88%
- The NPS scheme for senior citizens will remain the same at the respective change in employment city or state.
- The NPS account holder can transfer the superannuation funds to the NPS account without tax implications.
How to travel the world after retirement?
The NPS retirement benefits the senior citizens with traveling the world. After finishing your careers and sending the children to college does not mean that you do not have the opportunity to dust off the passports again. It is the dream for a lot of people to travel the world.
Start planning 5 to 10 years before you retire.
As with any part of your financial picture, you should start planning your retirement at least 5 to 10 years before and hopefully have a complete savings account and a retirement fund. When you plan for your retirement, you should keep a separate fund for retirement travel and some amount for your daily expenses.
To create an annual travel budget.
It is not enough to make a ten-year plan. You should revisit your financial matters frequently if you are comfortable managing assets independently. Make sure you understand the trip's overall cost and any potential emergency expenses that may become unpredictable during the journey.
Don't skip insurance.
Both national and international travel and health insurance are essential investments for older travellers. It can be unclear since they don't always cover every possibility. For instance, you are hiking on the switch as a walking tour in Greece. You fall in and break your ankle. The traditional policy coverage will provide medical evacuation to the nearest hospital in the destination. Still, if you would prefer to be flown back to your country, you must have coverage for medical evacuation to the hospital of your choice.
If you want to travel the world, you can get the HDFC travel insurance plan to ensure no harm during your travels. You can also get an HDFC retirement plan to help you plan the rest of your lives. You can contact us for the NPS , and we will help guide you through it or apply online.