Sooner or later, no matter how well-paid the job is… we all will be retired; what matters is how we plan it. However, if you’re retiring in a couple of years, it’s high time to find better contingencies for a peaceful retired life. One of the best options is property investment.
“The best time to start thinking about your retirement is before the boss does.”
Property Investment for Retired Professionals
First thing first, in layman’s terms, retirement is a process of saving a fixed portion of your income (monthly or annually); the aim is to secure your future and ensure a hassle-free life.
Both socially and psychologically, having a solid retirement plan impacts people’s lives to a great extent.
Now the question arises… how much to save/invest in living a better life after retirement. Let us figure out the practical plan for the Golden Days of your life. If you think, retirement is an old-age concept and you wouldn’t be needing any planning ahead, then you’re not doing well for yourself, and so with your future.
Why Retirement Planning is Important?
“Spend 50% on necessities, 30% on enjoying the present, and save 20% for the future”
Let’s be honest…
- Your health matters – the better the finances, the better the healthcare… People in retired age often face receding health conditions, for which resources are important; so, rather than be stressed in the future, be mindful in the present.
- Retirement needs to be ONCE ONLY – Just because you think you can work after your retirement doesn’t mean you should stop planning it; aim for a one-off retirement plan, so that you can live a peaceful life afterward.
- Be ready for Forced Early Retirement – Due to worsening economic conditions, you never know when your company will revise the retirement policies and decrease the working tenures of existing employees. So, before your retirement comes, be ready for all the unforeseen circumstances.
- Be financially stable ever – This is why we consider real estate investing the best option to secure your life after retirement. Since it’s a major turnout of your life, ensure that you’re financially independent for your retirement years.
- Not being a Burden on your kids – To enjoy a good time with your kids during your retired life, make sure you’re not a source of discomfort to your kids, especially for your financial belongings.
There are other reasons too, like managing your cash flows, income sources, expenses, asset management, etc… to consider planning for your retirement now.
However, if you lack a realistic approach to retirement planning you will end up living a financially crippled, dependent, and hopeless life.
Property Investments for Retirement Planning
Factors to Consider before investing for Retirement
When planning for property investments for retirement, do give your current lifestyle, a thorough analysis, and future expectations; these are the factors to consider before beginning your real estate investing in Pakistan.
- The Younger you’re, the Better the Planning: If you plan earlier, you would be better off with your retirement life, you would be having more options to invest and earn returns earlier. Maybe you can also decide on your own retirement age.
- Risk Tolerance: Before investing for retirement, ensure how much risk you are comfortable taking with existing finances. Factors that affect your risk tolerance include your age, financial goals, personal willingness, and property investment experience. So, do consider the varying levels of risk associated with different investment opportunities before investing.
- Short vs. Long-term Planning: Your time horizon decides how much to invest for retirement. Short-term property investments are better suited for those close to retirement, while the other option is better for those further away from their retirement age. Consider the length of time you plan to invest for and the amount of time you have until you need the returns of the investment.
- Goal of Property Investment: Here come investment goals that need to be taken into account before investing for retirement. So, ensure what you want your return on investment to accomplish, like providing income in retirement, passing on wealth to the family, or achieving a certain rate of return. And, for the best returns, we would say opt for property investments, and Islamabad should top your list.
Type of Property Investments for to-be Retirees
Real Estate
“The best time to buy a property is always 5 years ago”. Ray Brown
- Emerging Commercial Projects: For those nearing retirement we would suggest investing in any emerging commercial project, located in a developed/commercial locality. So, by the time your serving period ends, the project would be ready to reap the desired earnings. Keeping to-be retired in mind, we have an upcoming business tower, Citadel 7, located in Blue Area, Islamabad. The annual capital gain of the locality is up to 18%. This is one of the best commercial projects in Islamabad that offers state-of-the-art amenities across its corporate offices, retail outlets, and a food court.
- Developed Projects: For those retiring anytime soon can invest in any developed project – to earn a steady stream of income through rental payments. Often residential properties of highly-developed localities offer better rental returns than other propositions. You can also search for commercial property for sale in Pakistan and start investing.
Other Factors in Retirement Planning
Retirement Schemes in Pakistan
To make the readability, a bit less stressful here’re the attached retirement schemes in Pakistan that you need to know;
Satisfactory Health Insurance
In Pakistan, we do have some reliable health insurance organizations. They are serving well to a large number of citizens, with their customized saving plans. Find out authentic, economical, long-term, and satisfactory health insurance.
It might not be as necessary at a young age, but health insurance gets really helpful after Retirement. Some of the most notable health insurance organizations are;
- Asia Care Health and Life Insurance.
- Askari General Insurance Company.
- Adamjee Insurance Company.
- State Life Insurance Group.
- Alfalah Insurance.
- Jubilee Life Insurance.
Payment Insurance for Loans and Assets
If you are about to retire, ensure that all your loans and debts are paid off. If the loans are still pending or due to pay, your retirement life would be no more than a nightmare. It would be stressful, unfriendly, and humanly a burden on your old age with minimal income.
Hence, it is advisable to finalize the pending debts to live a comfortable life; you can apply for a loan as well, to settle your debts.
How to Start Saving for Retirement
Find the image next to, here’s the right way to start your retirement planning in Pakistan;
To Live a Hassle-free Retired Life… INVEST NOW
In Pakistan, one of the best ways to save your future is property investment. For real estate investing, the rule is simple… the proposition should be commercial; located in a commercial hub of the city, preferably Islamabad.
Ideally offers corporate offices; possession dates should be close to your retiring time; offers the best possible annual capital gain and rental returns.
