Retirement Plan: Is the best ever financial stick for your golden days

Posted by ankita on February 28th, 2017

People live with a purpose in life. We all have our own set of goals, while some achieve it many strive to fulfill them. A goal could be to own a car, house, going for a vacation abroad, starting up a small café or else retire rich. Life actually starts its second innings when people retire. In India, the nuclear family concept has already taken its birth and slowly and steadily more and more people are following this standard of living. Obviously, when you stay in a nuclear family your post-retirement needs would be regular expenses, health care needs, fulfill dream goals, etc. For this, you need a collective amount to live with pride and respect in front of everyone right from relatives to friends and even kids at times. Therefore, the best way to build this fund would be taking a suitable retirement plan.

Because of advanced lifestyle habits and healthy living standards, the average living expectancy of old people has reached to an average age of 80-90 years. This obviously creates an alarm in terms of the financial arrangement to sustain your living till this time.

It’s not about saving a huge amount of money for post-retirement, rather making a smart investment to produce result that will meet your expense at regular intervals. While markets offer various investment plans, the retirement pension plans offered by insurance companies are one of the best retirement plans in today’s time. These plans are dual benefit plans that help you invest a part of your premium in insurance cover and the rest gets invested in market-linked investment funds.

These plans come under the category of life insurance plans but with an added advantage of market-linked funds specially designed to meet your post-retirement needs such as medical expenses, standard of living, goals, etc. To ensure that you can enjoy your golden years with financial independence, retirement pension plan would be the ideal investment tool that will give you the best financial security.

While working on a retirement planthere are few things that a person has to bear in mind. Firstly, before choosing the type of retirement plan know your income source, risk appetite and future financial goals. According to this you can choose your fund type, spread across your allocation in funds, and monitor them on time to time basis. It is advisable to start working on your retirement plan when you are young. While young you can invest in equity-based funds, book the profits and move them to safer debt oriented funds.

Depending on how much you expect to get as a monthly payment post retirement you should choose from various retirement pension plans. Online sites help you compare the Retirement Plan Policy in terms of benefits & features, premium costs, claim settlement ratio and other important factors. Once you decide a particular retirement plan talk to your financial expert about the future prospects of the funds, and then go for the purchase. Monitoring your funds time on time basis is extremely important so that you can switch them if it is not producing the desired profits. Pension is not just about a monthly means of income post retirement, it is like your financial back up in terms of medical emergencies, fighting up inflation costs and beyond that a sense of pride in living self-independently in this competitive world.