Retirement is a new phase that offers a new lease of life to an individual and is a transition from a lifetime of work to getting a respite. It is the time period when the retired person gets to enjoy and dwell in the small pleasures of life which were always left in the backburner.
As someone rightly said, Life begins at retirement. But to sustain oneself during this period without having to depend on anyone else and to live life on one’s own terms requires planning beforehand.
And this planning requires the individual to invest in retirement plans so as to financially secure themselves and enjoy golden years ahead in their life.
Retirement insurance plans ensure the regular Pension money to an individual and his/her family post-retirement and give flexibility in choosing the retirement date and the mode in which one receives the pension amounts.
Following are certain key aspects and things to bear in mind when capitalizing for the retirement plans:
It is very crucial to commence this financial planning exercise at the earliest to enjoy and reap its benefits for post-retirement years.
Retirement age or Vesting Age is to be noted as it is the time when one decides to end the accumulation phase of money and make a transit to income phase and as the name suggests it is largely based on the age of the person.
It is important that one understands the pension amount one would require and the cost of Premium that he/she can afford.
One should contemplate about the surge in medical costs or for holidaying or any other aspect when investing and it is also important to map the income bearing in mind the current lifestyle of the individual.
Type of Retirement Plans
The basic types of retirement plans offered by insurance companies in India are one in which the returns are fixed as stated by the Insurer with a minimal deviation, while in the other the fund is invested in equity or debt funds. When it is the latter the returns depend on the market trend. Based on these aspects opt for any of the below said retirement plans accessible in India.
Deferred Annuity Plans: In this, you would start paying a premium while at work for a certain number of years. Pension will be received once you retire.
Immediate Annuity Plan: It is one best option for people who have lump sum cash. Here you start getting pension right from the day of payment.
It is also important to look into the investment returns and investment rates offered by the insurance companies. Also to shape out a better retirement planning process it is vital to determine the tax status.
Pension plans give a double benefit of insurance and pension. Best pension plans can be availed from various insurance companies that offer these policies. But to strategize for a proper retired life one needs to be informed about the good retirement or pension plans available in the market.
Checking different retirement quotes must be carried out after comparing the proper pension plans and this requires one to look into the price-feature comparisons to see what each company has to offer to yield the right product and assist oneself with the correct pension return calculations that are required and make an informed choice.