9 things to think about before deciding to retire in India

Introduction:

In this blog, we'll navigate through key financial considerations and preparations you need to undertake to ensure a smooth transition and a secure retirement if you plan to retire in India

1. Assess Your Preparedness to Retire:

Before making the leap back to India, it's imperative to assess your financial readiness for retirement. Do you have sufficient cash flows to sustain your retirement years? This is a critical question that demands thorough evaluation. Consider factors like your current financial resources, investments, and anticipated expenses in retirement. We have a blog on retirement preparedness for guidance.

2. Secure Health Insurance in India:

Healthcare is paramount, especially in retirement. Ensure you have adequate health insurance coverage in India. If you're planning to return soon, purchase health insurance now. However, if your return is a few years away, evaluate your health status before making a decision. Read our blog on health insurance for NRIs for comprehensive insights.

3. Decide Where You'll Reside:

Choosing your post-retirement abode requires careful consideration. Discuss with your spouse and determine the ideal location based on factors like safety, amenities, and proximity to essential facilities. Don't live in a secluded area. You may own previous or ancestral property, assess if it is suitable for you when you get old. You may need to sell existing properties or invest in new ones. Make informed decisions to ensure a comfortable retirement lifestyle.

4. Manage Financial Responsibilities Towards Your Children:

If you have children whose education or marriage expenses loom on the horizon, strike a balance between funding these expenses and building your retirement funds. Explore alternative financing options and avoid overburdening your retirement savings. Don't fall for societal pressures.

5. Understand Financial Risks in India:

Educate yourself about financial risks in India, particularly regarding taxation and falling interest rates. Anticipate future changes in interest rates and plan your investments accordingly to safeguard your retirement income. The interest rates on the Fixed Deposits in India will not last for ever, expect them to come down to as low as 3-4% and make plans accordingly.

6. Navigate Taxation Laws for NRIs:

Familiarize yourself with taxation laws applicable to returning NRIs, including the Resident but Not Ordinary Resident (RNOR) status. Seek professional advice to manage overseas assets and comply with tax obligations effectively. See our list of experts for professional guidance.

7. Manage Overseas Assets and Currency:

Decide whether to repatriate or retain overseas assets and currency. Understand the implications of maintaining foreign currency accounts and explore options like RFC accounts for seamless management of international funds.

8. Seek Professional Financial Guidance:

Secure your retirement cash flows by seeking professional financial assistance. Conduct a thorough assessment of your assets, liabilities, and risk tolerance to devise a comprehensive retirement plan.

9. Exercise Caution Against Financial Influences:

Beware of unsolicited advice from well-meaning acquaintances, and prioritize professional guidance. Exercise prudence in financial decisions, trusting your instincts and verifying advice through critical analysis.

In conclusion, returning to India marks a significant life transition, particularly in financial terms. By meticulously planning and navigating through the intricacies of financial management, you can ensure a secure and fulfilling retirement in your homeland. Remember, your financial well-being is paramount, so take proactive steps to safeguard your future.