ENTER YOUR GOLDEN YEARS WITH FINANCIAL FREEDOM

Retirement is an end to the daily struggle for the salaried persons. If you take a pension plan, you will be financially independent and free in this beautiful phase of life even if there is no incoming salary

What is Retirement Planning ?

These are specially designed investment plans that let you save money until you retire; to reap the fruits you had sown. From the day you buy a retirement plan, you contribute a certain amount to it on a regular basis. When your income stops on retirement, you start getting a steady income at regular intervals from your retirement plan. Very often, these plans also provide life insurance cover. Thus, along with wealth accumulation you also get life insurance cover.

For Example

Aditya, 25, plans to retire at the age of 65. He has built his portfolio with savings in Fixed Deposits and Public Provident Fund. However, an advertisement on retirement plans get him thinking about creating a regular source of income during his retirement years.

Based on his study, Aditya intends to purchase a retirement plan from an insurance company. Every year, he will contribute certain amount to the plan and the funds will accumulate. With 30 years until retirement, he will achieve better returns thanks to the compounding effect. Once he reaches the end of the accumulation phase (vesting age), depending on the plan chosen, Aditya can withdraw certain percentage of accumulated funds in a lump sum depending on the plan. The balance funds will be used to pay him a monthly income for the rest of his life.

Why you should invest in retirement plans ?

In our ultra-stressful modern lifestyle, we barely get time to plan for the future and give a conscious thought about retirement planning. However, if we can pause a little, understand current and the possible future expenses based on our lifestyle and start investing in a life insurance retirement plan, we can relieve ourselves from retirement woes. What’s important to understand is that:

It is a disciplined, affordable, and secure way for retirement planning.
You can get protection for your family, along with your retirement saving.
You can also choose to invest in market-linked pension plans or stick with a conventional pension plan.

Three Phases of retirement planning

Accumulation phase

The period you are paying a premium to build a retirement corpus. These are your working years when you earn a steady income

Vesting age

The age you choose to start receiving pension/income. Aditya proposes to retire at 65. So that would be his vesting age.

Annuity phase

The period after your retirement when you receive the pension/income.

How to choose the best retirement plan ?

Planning for retirement is a long-term financial goal. While investing for this period, people often face a major challenge as how to protect investment from capital erosion. Inflation consistently acts against the value of your wealth and investment over a period of time. Let us understand with an example. If you need Rs 1 lakh to maintain your lifestyle for a month, 20 years hence you would require Rs 3.27 lakh to enjoy the same lifestyle if inflation during the period remains at six percent.

Vesting age: it is the age at which your pension will start. Retiring early or late will depend on your career and financial status.
Premium payment term: define the period for which you will pay policy premiums..
Annuity options: determine how much income will be enough to cater to your needs post retirement.
Rider Options: decide what all additional benefits you will need to provide a comprehensive cover to your family.
Policy surrender charges: take note of these charges, in case you have to surrender the policy.

3 Retirement Planning Mistakes To Avoid

A child is a parent’s greatest joy. Being a good parent is a tremendous task. You worry about the well-being of your children. You hope that the decisions you make regarding your child are the right ones. You nurture your children into becoming responsible adults. If unfortunately something untoward were to happen to you, it is instrumental that you plan for the prospects of your family. You should equip your family with all the means to lead a comfortable life. It is better not to underestimate the needs of your family. To foster your child’s future prudently, it is essential you have a child’s insurance plan. Here are just three of the most important reasons why you need a good child insurance plan

Not Starting Early

Case 1

There is Anjali who started her retirement plan at the age of 30 and she decided to retire at the age of 60 with monthly premium of 2500. The total years for which she will be investing is 35 year and total investment will stand at 9 lakh rupees. At the annual rate of return of 8% she would be accumulating around 35,21,367 at the age of 35 years

Case 2

There is Aditya who started her retirement plan at the age of 45 and she decided to retire at the age of 60 with monthly premium of 5000. The total years for which she will be investing is 15 year and total investment will stand at 9 lakh rupees. At the annual rate of return of 8% she would be accumulating around 16,88,031 at the age of 65 years

Not Saving Enough

Another golden rule for making investments is “Earnings – Savings = Expenses”. That’s right. Make savings a priority. When you have just started your career, you probably do not have major liabilities. Most of your earnings can be saved and invested wisely. Make a plan today to start saving regularly. Use our retirement calculator to know about how inflation can affect your future expenses.

Not Increasing Savings

As you climb the professional ladder, you receive perks, bonuses and increments. Over the years, ensure that your contribution towards your retirement fund increases regularly . Wisely and timely investment in a retirement plan can go a long way in securing your ideal retirement life

Book Appointment With Our Financial Advisor

Name

Phone

Appointment Date

Appointment Time

address