Why You Should Buy a Retirement Plan this New Year?

Retirement is an important life-event for almost every individual. To ensure personal and financial comfort during these years, it is crucial to start planning at an early stage. To achieve your objectives will still need to manage your assets during the golden years of your life.

The complexity involved in retirement planning makes it extremely daunting for most people. Fortunately, you could buy the best retirement plan in india with little hassle if you spend some time researching and doing your homework.

Retirement or Pension Plans

Pension or retirement policies are investment plans that allow individuals to allocate a component to generate regular income after they retire. Having an effective and efficient plan is important even when you have adequate savings. These can be exhausted quickly, especially during emergencies, and having the best retirement plan is important for your future financial security.

Features and Benefits

  • Minimum guarantee — According to the regulatory guidelines, all kinds of pension and retirement plans must have “on-zero returns”. Most insurers offer a minimum guarantee on the total premium during the policy duration.
  • Tax benefits — The final payout is disbursed in two ways; 33% can be a lump sum withdrawal and this amount is not taxed. The remainder will invite taxes.
  • Changing social structures — Most people do not want to depend on others for financial assistance after their retirement. As the joint-family system disintegrates and an increasing number of aged adults wish to maintain their independence, there is a growing need for people to plan their financial security after they retire. Opting for guaranteed returns policies can help achieve this stability.
  • Future financial stability — People are used to a certain lifestyle when they earn a regular income. It becomes hard to maintain such lifestyles after retirement, due to the lack of financial liquidity. To avoid this situation, it is important to choose an appropriate retirement policy that offers regular income during the future.

Factors to Consider while Buying these Insurance Plans

  • Premium — This is an important consideration while buying retirement plans. Ensure that the amount is within your budget to avoid financial difficulties in the future.
  • Future amount needed — This requires considerable thought, as various factors need to be taken into account. Seek expert guidance to understand the corpus that will be needed to sustain your standard of living in the future.
  • Reputation of the insurer — Most people choose the least expensive plan, but this can be detrimental in the long run. At the time of retirement, you could find yourself in a difficult situation, as the plan was inadequate. Instead of cutting costs by signing with less known insurers, look for trusted insurance companies that have a good reputation.

Now that you have a better understanding of retirement plans, make an effort to buy a policy at the earliest. Consult a financial adviser for help choosing a suitable policy, but do not delay the purchase. Make sure that this is your first resolution for the New Year!