Retirement is the time to relax, enjoy life and take it easy. This however means that one has to have been very financially careful early in life to ensure that sufficient funds are saved to retire comfortably. One should ideally save from as early as possible to get better returns over time and harness the power of compounding. Long term investments are the best option for individual investing early in life, since one can benefit from the power of compounding. One should also make investments towards their retirement savings via the Electronic clearing system (ECS) route - making the whole process automatic, and ensuring that no surplus expenditure gets in the way of your retirement planning. Let us look at a few options for retired people to bolster financials.

It is the most important step where you define and write down the objectives of retirement. It is very important that a practical financial budget has been put in place and strictly adhered to. It is not only about budgeting but also about the goals that need to be achieved. Being specific is better while setting goals, for example - instead of mentioning travel, it is advisable to list out the places one wishes to travel to. Now is the time to find new ways to cut expenses. List your bills and figure out ways to cut them out. The expenses pattern pre-retirement would not be usually the same as post-retirement. Such unwanted expenses should be avoided, but keep in mind that there will be additional expenses in terms of medical bills, etc. Ideally spending less on luxuries & discretionary items to save for the unexpected needs of future will lead to better savings, and more money during retirement.

It is crucial to ensure that a source of guaranteed income has been arranged to meet one's basic requirements and for any emergency expenses. Sometimes you might find yourself spending more post-retirement on traveling, hobbies and entertainment. Healthcare cost rises significantly. So making a budget for all such expenses is very necessary. It is also very important to factor in inflation as every year, even the basic requirements becomes dearer.

Apart from regular income from pension, rentals and interest, a person could always plan to earn from his hobbies. You could always consider the option of becoming an entrepreneur (even if small scale). This could act as a source of income as well as you could pursue your dream or hobby and get emotional satisfaction. Plan all the capital investments required and prepare a budget accordingly. One must also look into the various assets possessed and the income generated from such asset. Sometimes it may be required to change or diversify the investment portfolio accordingly to manage the risk and return. For example: A portfolio of equities could be rearranged to a portfolio of fixed income, to bring in security during retirement phase.

Ensure that all medical expenses and any emergency situations expenses are met by the risk cover (if any) and do not fall on you during the retirement tenure.

Also, a lot of people look at shifting after retirement to a smaller town or village which is more peaceful and provides emotional satisfaction. Such decisions should be well planned and should look out if appropriate funds have been allocated for any such expenses.

If you have been in employment for a very long term, then do not forget to collect the amount contributed towards Provident Fund & Gratuity lump-sum. Pension is comprised of two components i.e., Commutable Pension (Lump-sum) & Non-Commutable Pension (monthly distribution of income). Gratuity shall be received by the employee from his employer on retiring from service as lump-sum amount. One can also look at a reverse mortgage, wherein one's house is pledged with the bank, and the bank pays you a monthly income for the rest of your life.

Summary:
• Make a strict budget and follow it
• Do not forget risk cover - especially health insurance
• Health costs are likely to soar - keep this in mind when budgeting
• Review asset allocation