The number of NRIs (Non-Resident Indians) considering returning to India after retirement is rising. Those who went abroad seeking career growth are now ready to return to the warmth of their home country post-retirement.
A survey conducted by SBNRI revealed that more than 60% of NRIs are planning to return to India.
1. 80% NRIs from Australia and Singapore
2. 75% of NRIs from the United States
3. 70% from the United Kingdom
4. 63% from Canada
The numbers are significant and it’s easy to understand why the NRIs want to return. India is a booming economy that offers incredible investment opportunities and a comfortable lifestyle. And it’s a home after all.
So, if you are an NRI planning to return to India after retirement, this blog is for you. Read along to know what you need to consider before returning.
Being closer to the family and community is one of the strongest reasons for many NRIs thinking of returning to India. After spending years in a foreign country building a career, it’s natural to feel that pull towards your homeland.
The opportunity to celebrate festivals with the family and create memories holds significant emotional value. The familiarity with the people, the cuisine, and the vibrant traditions offer a sense of belonging.
A house in a hometown or in a familiar city ensures security, social engagement with friends and family, and comfort.
All these things gain importance in one’s life as they near retirement.
One of the primary factors while planning for retirement is the healthcare cost. Medical bills may increase with age, causing a severe dent in your savings.
Compared to other countries, healthcare costs in India are significantly lower. An NRI on X (formerly Twitter) recently shared his experience- one of his family members only had to pay $50 (~4000rs) for 72+ medical tests which would have cost $10000 (~8.4 lakh rs) in the US without health insurance.
Moreover, the wait time for medical appointments is longer in many developed countries. India offers fast healthcare and has adapted advanced treatments and equipment. The medical infrastructure in India is rapidly growing, even in small towns. You get efficient and cost-effective healthcare.
Being able to hire a domestic health is an underrated advantage of living in India. You can rely on your house help for daily chores such as cooking, cleaning, and running errands. While this luxury is available in other countries, it’s usually at a much higher cost.
You can easily hire staff in India. There are plenty of third-party services that send trained staff as per your needs at affordable prices.
House help is going to make your life comfortable and relaxing, so you can enjoy your golden years.
The cost of living in India is much lower compared to other countries. With your financial corpus built over the years, you can live a comfortable life throughout. Plus India has become a smart country, making life easier.
A few simple examples are- paying via UPI even at small shops, ordering groceries in 10 minutes with discounts on various payment options, and healthcare tests at home at affordable prices. From your haircut to a dine-in at a fancy restaurant, everything will be cheaper compared to your current lifestyle.
India is a growing economy with plenty of investment opportunities for financial growth. From good old FDs to different categories of mutual funds, you can invest as per your goals.
Mutual funds can help build a consistent income after retirement. You can invest in a combination of equity funds and debt funds in order to balance the risk and reward. That will keep you worry-free. Later, when you are ready to withdraw income, you can start a SWP (Systematic Withdrawal Plan) from your mutual funds.
Understand a 3-bucket strategy to plan for your retirement beforehand. That way, you can explore a mix of safe and growth assets to build a large corpus to retire comfortably.
Experts at VNN Wealth will help you optimize your investment portfolio for your retirement goals.
Make sure you are on track to building your retirement corpus. When you retire, you should be able to comfortably withdraw funds.
Let’s say you are retiring in the next 5 years and will be returning to India. In this case, you can start investing in India if you haven’t already. Apart from your investments in your country of residence, your investments in India will generate wealth by the time you retire.
That way, you will be prepared to start your life in India without having to worry about moving your money.
Here are some options for NRIs to invest in India. Get your portfolio reviewed to optimize your investment and plan for your retirement.
Health insurance is very important. Evaluate health insurance plans in India to see what’s covered, and what’s not covered.
Some illnesses may have an eligibility period before you can claim them with your health insurance. If you have such illnesses, plan to buy the insurance before coming to India so that your eligibility period starts accordingly.
Make sure to see the hospital where the insurance will be accepted to avoid any surprises. Include your family in your insurance.
Where are you planning to stay once you return to India? Do you already have a home here? Or are you planning to live in a different city?
You most likely already have a home, in that case, you can easily return. Otherwise, you will have to sort your living arrangements beforehand. Buy a comfortable house as per your preferences. You can consider selling your old house and buying a new one. Make sure you won’t be in debt for long after retirement, clearing your home loan.
Consider getting a house from where the market, public transport, and a hospital are nearby.
Understand your tax implications before coming to India. As NRI, you will not have to pay double tax under the Double Taxation Avoidance Agreement that India has with 70+ countries. Your income earned abroad will not be taxable in India. If you are earning any income in India, say via rent, will be taxable in India.
Once you return to India, your NRI status becomes RNOR (resident but not ordinary resident) and eventually ROR (resident and ordinary resident) over a period of a few years. You can get your taxes in line while you are RNOR. Once your status changes to ROR, you won’t be able to avail DTAA benefits.
Talk to your tax advisor before returning home so you can minimize your tax liability.
Seek professional assistance in managing your investment portfolio, legal matters, and relocation logistics before returning. This will help you avoid any hurdles.
Expert financial planners can guide you with your investment in India and your country of residence. They will also help you start a monthly income from your investments after retirement. Get in touch with VNN Wealth for further information and complete guidance.
Retirement is the most awaited phase of everyone’s life. After spending years building a career and securing a financial future, you deserve a comfortable lifestyle. For most NRIs, that includes returning to India.
India is rapidly growing with a lot of potential for a secure future. You can easily build a life here with your retirement corpus built abroad. That money is worth more here in India, allowing you to afford a good and consistent lifestyle.
So, how do you want to spend your golden years? In your family home, or maybe somewhere outside the city in a cozy cottage.
Contact VNN Wealth for complete assistance in planning for your retirement.
