Fee-only financial planning · SEBI Registered Investment Adviser

Retirement Planning When You Retire in 1 to 5 Years

In the last few years before retirement the questions change. It is no longer how much to save but whether what you have is enough, what to do with the provident fund, gratuity and leave encashment when they arrive, and how to turn a corpus into a monthly income that lasts thirty years. Many people who call us at this stage have managed their own money well and want a second opinion before they commit.

What changes in the last five years before retirement

Is the corpus enough, at today's spending?

The answer depends on your monthly spending, any pension or rent that covers part of it, and inflation over a retirement that can last thirty years or more. The plan runs these numbers year by year and shows the spending level your corpus supports, or the gap to close before the date.

Large lump sums arriving within months

Provident fund, gratuity, leave encashment and sometimes a voluntary retirement payout can arrive together. The plan decides in advance where each goes, so the money does not sit idle in a savings account or go into whatever is offered at the bank counter that week.

Turning a corpus into a monthly income

A pay cheque stops; the bills do not. The plan sets out which accounts pay the first years of expenses, which hold the money for later decades, how withdrawals are taxed and the order in which to draw on each account, written as an annual routine.

A bad market just before or after the last day

Losses in the first years of retirement, while money is being withdrawn, do more damage than the same losses later. The plan keeps the near-term expenses away from equity and holds equity only for the years it can wait.

Health cover after the employer's cover ends

Group cover usually stops with the job, and buying cover gets harder with age and health history. Your own health cover should be in place, with its waiting periods served, before the last working day.

How we plan the years around retirement

  1. A retirement check with your own expenses, pension and inflation assumptions: whether the date works and what spending the corpus supports.
  2. A decision, made in advance, for every lump sum you expect: provident fund, gratuity, leave encashment, maturing deposits.
  3. Three buckets: the next few years of expenses in debt, the middle years in a balanced mix, the later years in equity, with a written withdrawal order.
  4. A review of NPS, EPF and other accounts against the exit rules in force when you retire, and the tax effect of each choice.
  5. Health and life cover checked before you leave employment.
  6. A review after six months and email support through the year; renewal re-runs the numbers each year.

See what a finished plan looks like, section by section

What the engagement includes

₹15,000 for the first year, including GST, per couple with dependent children. Parents' health cover is reviewed as part of the plan; their own goals and investments are not. Renewal is ₹7,500 a year, including GST.

  • A free discovery call of up to 30 minutes, then a data sheet and risk-profile questionnaire.
  • A written financial plan within 2 weeks of your approving the initial analysis, walked through on a video call.
  • A review after six months and email support for the whole 12 months.
  • Advice only: you keep control of your accounts and investments. No commissions, no percentage of assets, no products sold.
  • Not included: income-tax return filing, direct stock tips, cryptocurrency, PMS or other complex products, or holding your money.

The plan and the fee in detail · How the engagement runs · All questions

Questions people retiring soon ask us

I manage my own investments. Why would I need a plan now?

Saving and spending are different jobs. A plan for the drawdown years answers questions DIY investing rarely covers: how much you can spend each year, from which account, in what order, and what happens if markets fall in the first years. Many clients at this stage use it as a second opinion.

What should I do with my provident fund and gratuity?

It depends on your spending, your other income and when you need each amount. The plan assigns each lump sum to a purpose before it arrives, so nothing is decided in a hurry at the bank.

How does NPS work at retirement?

Part of the corpus can be taken as a lump sum and the rest buys an annuity, under rules that PFRDA has revised more than once. The plan applies the rules in force when you exit and compares the choices for your situation.

Will you manage my money after I retire?

No. We give advice; you keep control of your accounts and investments. The plan tells you what to do and when, and the review and renewal keep it current.

What does the plan cost?

₹15,000 for the first year and ₹7,500 a year to renew, both including GST, per couple. The fee does not depend on the size of your corpus.

Related reading

Other guides

Investment in securities is subject to market risk. The rules described here are general and change; the plan applies the rules in force to your situation. SahajMoney does not file tax returns or give legal advice.

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