Till the time we're working and earning our living we cannot predict the time when we'll have to survive being dependent on our children or so called relatives.
Many of us do not give it a thought that how would be the situations when we won't have a regular source of income and added medical costs to our routine expenditures due to age factor and to top it all - The rising inflation rate.
The question every individual needs to ask from his/him own self is why do I need a pension plan? Multiple valid answers would come to your mind in the forms of question again such as: - How would I manage my routine basic expenditures when source of income stops? - What would I do if I get ill which is very likely to happen in old age.
- What if I want to get some gifts for my children, grandchildren or some relative? - How would I please my spouse in those golden years for not having any money to go for lunches/dinners or buy something to her? - And many more...
Our current lifestyle has become so expensive and needs have increased because of having a decent earning during the working years.
It becomes really tough for individual to degrade his/her lifestyle, cut on the basic requirements for lack of income.
Retirement plans are the best option to pool in a certain amount when you're working and can afford to pool in some money monthly or yearly for those golden years when source of earning stops but dignity matters a lot.
Other causes to plan your retirement in time: - The average Indian age span has increased from 65 to 85 in the past two decades.
Thanks to the medical facilities! - Age grows and so the need of medical care.
As a result, the need for a hefty amount arises.
- After the year 2003, Indian government has stopped providing pension facility to the employees employed after that period.
- Your private employers do not provide you any such facility to help you in need when you're retired.
- The inflation rate would increase your monthly expenses even if you're stuck to your current lifestyle and continue with the similar needs as today.
For eg.
If a person spends 25,000 a month today to meet his basic requirements, assuming an inflation rate of 7%, he'll need 1,36,000 a month to meet his similar expenses over a period of 25 years.
When is the right time to plan my retirement? "Early you start, better you get".
You should plan your retirement at the age of 25-30 years as that is the time when you're healthy enough to avoid emergency medical expenses.
Moreover, youth is the time when you can work hard and earn extra to meet your additional expenses.
Start pooling a fixed amount monthly to build your corpus before you retire.
No worries, if you've crossed the right age limit to opt in a pension plan.
There are certain immediate annuity plans available with insurance companies to find out a solution for you.
How to choose a best retirement plan? Features you need to keep in mind while choosing a retirement plan: - Look for a plan that has low allocation charges to put more of your money to your investment pool.
- A plan that provides good returns and beat inflation rate.
- Protects your hard earned money from market oscillations.
Many of us do not give it a thought that how would be the situations when we won't have a regular source of income and added medical costs to our routine expenditures due to age factor and to top it all - The rising inflation rate.
The question every individual needs to ask from his/him own self is why do I need a pension plan? Multiple valid answers would come to your mind in the forms of question again such as: - How would I manage my routine basic expenditures when source of income stops? - What would I do if I get ill which is very likely to happen in old age.
- What if I want to get some gifts for my children, grandchildren or some relative? - How would I please my spouse in those golden years for not having any money to go for lunches/dinners or buy something to her? - And many more...
Our current lifestyle has become so expensive and needs have increased because of having a decent earning during the working years.
It becomes really tough for individual to degrade his/her lifestyle, cut on the basic requirements for lack of income.
Retirement plans are the best option to pool in a certain amount when you're working and can afford to pool in some money monthly or yearly for those golden years when source of earning stops but dignity matters a lot.
Other causes to plan your retirement in time: - The average Indian age span has increased from 65 to 85 in the past two decades.
Thanks to the medical facilities! - Age grows and so the need of medical care.
As a result, the need for a hefty amount arises.
- After the year 2003, Indian government has stopped providing pension facility to the employees employed after that period.
- Your private employers do not provide you any such facility to help you in need when you're retired.
- The inflation rate would increase your monthly expenses even if you're stuck to your current lifestyle and continue with the similar needs as today.
For eg.
If a person spends 25,000 a month today to meet his basic requirements, assuming an inflation rate of 7%, he'll need 1,36,000 a month to meet his similar expenses over a period of 25 years.
When is the right time to plan my retirement? "Early you start, better you get".
You should plan your retirement at the age of 25-30 years as that is the time when you're healthy enough to avoid emergency medical expenses.
Moreover, youth is the time when you can work hard and earn extra to meet your additional expenses.
Start pooling a fixed amount monthly to build your corpus before you retire.
No worries, if you've crossed the right age limit to opt in a pension plan.
There are certain immediate annuity plans available with insurance companies to find out a solution for you.
How to choose a best retirement plan? Features you need to keep in mind while choosing a retirement plan: - Look for a plan that has low allocation charges to put more of your money to your investment pool.
- A plan that provides good returns and beat inflation rate.
- Protects your hard earned money from market oscillations.
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