Retirement offers an opportunity to spend your golden years of life the way you wish with the same or better lifestyle which you’re enjoying today. Retirement is certain, and one continues to live even after his or her retirement.
Therefore, the expenses would exist even after retirement. Both expected as well as unexpected expenses would occur. The expected expenses would include household expenses, children’s education fees, discretionary expenses, EMI payments, etc. The unexpected expenses would include a medical contingency or some other emergency.
Hence, you would require a retirement plan for meeting such expenses.
Why Retirement Planning is Important?
Retirement planning refers to the process of planning your short as well as long-term finances for achieving your financial dreams during your working years as well as retired life. This process involves analyzing your financial goals, expected future cash flows, and current financial position for the purpose of developing a comprehensive retirement roadmap. Retirement plans often try to account for every possibility that may happen in retired life, from estate planning to applying for Social Security Survivor benefits.
Without a prudent retirement plan, you might be running the risk of outliving all your savings and find difficulty in maintaining the desired post-retirement lifestyle. You would also run the risk of not accumulating enough corpus for your dependents due to uncertain and unfortunate events like a medical emergency, disability, etc.
Benefits of Retirement Planning
Proper retirement planning helps you in determining how much to save today for your retirement; how and where to invest your savings for desired returns, how to safeguard your assets and how to make sensible use of your retirement income.
Retirement planning helps you in maintaining the desired lifestyle in your post-retirement phase of life. It offers financial security both to you as well as to your dependents by allowing you to make judicious investments during your working years. The key benefits of retirement planning include:
- Medical Emergencies: With age come health-related issues. Medical expenses could cause a huge dent in the income post-retirement. A failure here might lead you to liquidate all or some of your assets for meeting such medical expenses. It’s important to remember that medical claims may not always suffice.
- Inflation: You don’t just have to worry about inflation but account for it as well. You must take into consideration inflation while calculating your post-retirement lifestyle expenses.
- Depending on Your Kids is Unfair: For most of Indians, their retirement planning is their children. But depending on your children for financing your retirement is definitely unfair. For any young couple to be responsible for three generations (their parents, themselves, and their kids) isn’t easy in any scheme of things.
Benefits to Look for in a Good Retirement Plan
- Flexibility and Personal Fit: The whole point of a retirement plan lies in its ability to be personalized to one’s needs. You must be able to continue contributing even during difficult times.
- Easy and Simple to Understand: The joining procedures must be easy and the documentation requirements should also be simple to understand. Most of the retirement plans nowadays allow for online contribution which is easy and convenient.
- Good Returns: It’s important to understand how your hard-earned money is invested, your returns, and projected savings in the longer run. A good retirement plan must offer maximum returns on your investment.
- Transparency: It’s something you must consider while choosing a retirement plan provider. Your retirement plan must be transparent with no hidden charges. Your relationship manager must be able to answer all your queries.
Choosing the Right Retirement Plan
Still unsure? Check out the Retirement Plan to ensure that you have enough for enjoying a better life ahead. With competitive yields and monthly payouts, you could look forward to a post-retirement life where you could live on your own terms.
Pension Plan is a simple, hassle-free plan which helps you in accumulating your premiums and investment returns into a corpus for your retirement. The plan offers a host of benefits, such as Vesting Benefit, Guaranteed Additions, Death Benefit, etc. Now is the time to make savvy investment decisions during the working period of your life and put them to work for you for a secured future.