2. Pay off liabilities

Once the risk is taken care of in terms of having the right insurance policies, one should next look at eliminating debt from the books. One should concentrate on paying off large liabilities like home loan before retirement.

A person should start with loans which carry the maximum interest rates and plan repayments at least 10 years before retirement. No one wants their retired life to be burdened with EMI payments!

3. A sufficient health cover

The rapidly escalating medical expenses make even a cover of 10 lakhs insufficient for a family of four in today’s world. Remember that on retirement, the cover provided by the employer will get discontinued and therefore one should have a secondary cover as well. The needs of the family should be carefully assessed before deciding on the amount of cover to be taken.

Another suggestion is to split the cover across two insurers, in order to take a higher overall coverage amount, as well as to de-risk the cover. Post retirement, buying a health insurance can be prohibitively expensive, if not impossible. So having a sufficient health cover in place is an imperative action one must take before retirement.