Gurugram, India, 30 July 2024-Every salaried or self-employed professional dreams of a financially secured retired life. To make your dreams into reality, you should have a retirement plan to implement and execute. Effective retirement planning makes you financially independent and reduces your liabilities on others. Your retirement does not positively or negatively influence your credit score; however, your pre-retirement credit history can surely affect your creditworthiness post-retirement.
Retirement does not mean the end of financial obligations, as money is required in every phase of life. Retirement means quitting your existing job that you were doing for so many years to start afresh that you love doing. It could be for yourself, your spouse, your children, or even your grandchildren.
Your credit score directly impacts the loan interest rates offered by the lending institutions. Your high credit score is always beneficial even after retirement, as you can easily avail personal loans to meet financial requirements due to unforeseen circumstances. Therefore, to know your credit score free of cost, you can visit the Paisabazaar website or app and remain updated with the latest score trends, even after retirement.
Importance of Credit Score in Retirement Planning
Multiple Loan Options
Suppose you maintain a high credit score and apply for a loan, post-retirement. In that case, you have better chances of availing credit among multiple loan options with enhanced negotiation options, higher loan amounts, lower interest rates, and favourable repayment and foreclosure options.
Low Insurance Premiums
Even though it is a relatively new concept in India, if you maintain a decent credit score (750+), various insurance companies and aggregators shall charge lesser premiums on policies. It helps you to avail health or term insurance policies at concessional rates with additional benefits.
Starting a Business
Starting your own business does not require any age; however, it certainly requires funds. Maybe due to some financial obligations and responsibilities, you were unable to follow your passion to start your business and kept on earning as a salaried professional. Now, with the help of a good credit score, you can avail business loans or business credit cards to start your own venture, as there is no age to start a business.
Home Renovation
There may be situations when you may need a bigger home because of your family requirements or need some sort of home repairs or renovations. To meet these financial needs, you need to have a good credit score even after retirement to avail personal loan or home renovation loan at discounted interest rates.
Medical Emergency
Life is unpredictable and urgent medical emergencies can arise anytime during life. If in case you are covered under any medical insurance policy then it is fine, otherwise only a good credit score can come to your rescue. You can avail instant personal loans from leading financial institutions at lower interest rates to overcome these unforeseen circumstances or cash crunch situations.
Conclusion:
Ideally, you should try to maintain a good credit score, as soon as you start working to lead a financially secure life. To overcome unforeseen circumstances or cash crunch situations, you should have a high credit score even after retirement to manage these tough times. Moreover, you shall not be waiting for your children, spouse, or other family members to take you out of dire situations. As you have been working your whole life or a majority of years, you need to ensure a financially comfortable retired life. Always remember that the decisions you make today can financially safeguard your life after retirement.
Media info:
Email: care@paisabazaar.com
Organization: PaisaBazaar
Phone:18002088877
Address:135 P, Sector 44, Gurugram (HR) 122001
