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>Gilded age
>Don’t plan to stop working
>Be proactive to be empowered
>A little parental guidance
>Market edge for your pension
>Don’t trust in luck alone
>It’s never too late to plan
>On the home stretch by 40
>Start young, retire rich
>Generational shifts
>Looking forward to retirement
>Tax-friendly retirement savings
>A road map to retirement

Ask people where they’d like to retire and chances are that most of them would want to head for the hills or beaches. They are, however, likely to add that it would be more ‘practical’ to stay in a city, given the access to healthcare, reasonably efficient transport system, basic civic amenities, and more. But over the past few years, there has been a definite improvement in the infrastructure in small towns and tier II cities. Retirees are now looking at living in their ancestral villages or in towns they had rarely visited.

Real estate is far cheaper in these places, so buying a retirement home is not too difficult. In fact, apart from locations within the country, retirees are now actively exploring venues abroad (countries like Malaysia and Mauritius have schemes that encourage retirees to buy property and settle down).

Given the increasingly mobile and affluent population, it’s easy to understand why more people are taking an active role in planning their retirement. Shashank Paranjpe, MD, Paranjape Schemes, says, “On the one hand, the traditional Indian family support system is crumbling because large sections of the working population are migrating either permanently or temporarily to other countries. On the other hand, the greying population is better equipped than ever before—financially, physically, and emotionally—to choose a fulfilling, independent and an active lifestyle.”

Hemaprabha & Bhalchandra D. Datar, 72 The couple moved from Mumbai to a retirement resort in Pune, where they had bought an apartment for Rs 12 lakh. “All our daily needs are taken care of at the resort and we do not have to move out for anything.”

Mukesh Mittal (left), 48 The Ghaziabad-based businessman enjoyed his Bengaluru holiday so much that he decided to retire there. He bought an apartment at the LIC Care Homes project for Rs 11 lakh. “I plan to retire when I am 50. That’s when I will be eligible to stay at the retirement resort.”

Many of these empowered retirees are buying retirement homes in desirable locations, sometimes as an investment. Given that different locations offer varied advantages, geographic and otherwise, it becomes difficult to choose a retirement destination. However, advance planning can make the task easier.

One obvious benefit of planning ahead is that you can take advantage of low realty prices before others discover the place. Also, if you have made the decision to relocate or stay put in a particular city early on, you can start saving according to the cost of living in the city.

It has now become even easier to plan things early as the banks are ready to finance the purchase of property even if the borrower doesn’t stay in the same city. Planning early allows you to own an asset that you can leverage later when you need funds—even without selling it.

But where should you move? Retirees who relocate generally prefer a safe, uncrowded destination with good medical facilities and a low cost of living. There are three main reasons why retirees move to a new location. The first is to live in a beautiful place with a better climate.

Some people move because they want a place that is more interesting and exciting than their present location. Wanting to be closer to a support structure is another motivation. Some retirees may want to move to another city because they want to be closer to their children and grandchildren.

If you want to retire to the hills or a seaside resort town, it’s a good idea to start planning early. Real estate is expensive in popular tourist destinations, as many people, including non-retirees, want second homes there. Also, even after you have bought property at one of these locations, be prepared to shell out more for maintaining it.

And, remember, that you would have seen these places at their best if you have only holidayed there. For instance, while the weather at a hill station in summer is ideal, it can be taxing in the winters.

If your budget and schedule permit, you should try living in the place of your choice before actually investing in any property.

Settling down in or around cities is a good option for those looking at a second career or even part-time employment after retirement. If you are worried about shifting to a new city where you might not have friends and are unsure about the support systems, the new retirement resorts coming up near some cities can be viable options. Modelled on townships in countries like the US and Australia, these resorts are aimed at senior citizens who are willing and able to lead an active life rather than those requiring serious long-term care.

These communities operate on a variety of models. The Senior Citizens’ Resort on Chennai’s East Coast Road, for instance, is a cluster of cottages where residents are almost fully independent. Only a common dining area and regular medical supervision distinguishes the complex from any other residential colony. A retirement resort in Noida boasts 24-hour medical assistance, club, meditation hall and a well-planned shopping area. Seniors buy a flat and pick the services they want.

Shashank Paranjpe, MD, Paranjpe Schemes "If retirees buy homes at a late age, they usually do not want to spend much on lifestyle facilities."

Myth: If I need cash urgently, I can sell my property. Fact: Unlike other investments, real estate cannot be sold at the right price for short- term requirements. People who buy homes for retirement aren’t typically thinking of selling, but should they choose to do so, they should realise it could take several months, even years, to get their money back.

If you’d rather move to another city, there are several options available. For those who live in the north, Chandigarh is a good option. It offers good civic amenities and easy access to hill stations. The property here costs around Rs 2,600 per sq ft. Its southern counterpart is Coimbatore, which is also close to the hills. This city is known for its healthcare facilities, and real estate costs about Rs 2,500 per sq ft.

Dehradun is fast emerging as a viable option to Chandigarh, with the added advantage of cheaper property (Rs 1,800 per sq ft). In the south, for the same price, you can buy property in Puducherry.

Other popular destinations are towns in Himachal Pradesh and Kerala, Mangalore and Mysore. Many retirees want to buy property in Goa but the legality of ownership makes it a complicated affair. So even at an attractive rate of Rs 2,100 per sq ft, senior citizens are not advised to buy here.

A lower cost of living in another city can mean a much higher standard of living. Use the cost of living indicator to figure out how expensive a city is, but understand that your own living standards will decide what you spend every month.

So, if you live a spartan life, you can have money left over even in the most expensive city. Then the only question that remains is whether you want to live in an expensive, cosmopolitan city or retire to a rustic retreat. Take your pick.