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Retirement is the beginning of a new phase in your life where you want to live life on your own terms.
What is a Retirement Plan?
Retirement is the beginning of a new phase in your life where you want to live life on your own terms. Whether you want to accomplish new objectives post retirement or you want to enjoy a relaxed and comfortable life, the critical factor is adequate financial support that offers a regular income, to take care of health care costs, day-to-day expenses and ensure that you are able to maintain your standard of living.
Retirement plans from life insurance companies, work in two ways – help you build a corpus during your earning years when you are able to save, and invest towards building your retirement corpus, in a way that it provides you with financial support throughout your retired years. During the accumulation phase, a retirement plan invests your money, which over the long term generate appropriate returns and help you build a significant corpus for retired life. In the post-retirement phase, through an annuity product, you can get regular income for life.
Benefits of Early Retirement Planning
There are several benefits of retirement planning ranging from monetary to personal advantage, like bringing in a financial discipline. Here are the key points on why is it necessary to plan for your retirement early:
* Retired life is all about pursuing your interests, traveling to new
places and enjoying a relaxed and comfortable life. Retirement
planning in advance ensures that you are able to comfortably
provide for your needs, healthcare expenses and also live a
retired life of your dreams.
* The earlier you begin planning and saving for retirement, the
more you can reap the benefits of the power of compounding,
which goes a long way in enhancing your returns on your
earnings. Use our retirement calculator to plan your
retirement.
* The other major advantage of retirement planning is the tax
advantage both during the accumulation phase and later while
reaping the returns after retirement. Premiums for retirement
policies qualifies for tax deduction under Section 80CCC of the
Income Tax Act 1961, subject to provisions contained therein.
Further, when you reach vesting age, you can get up to a third
of the retirement savings as a tax-free lump sum under Section
10(10A) of the Income Tax Act 1961, subject to provisions
stated therein.
* Retirement planning is crucial to ensure that inflation doesn’t
derail your dream retired life. By investing systematically, you
can ensure that you are able to accumulate significant corpus
to fulfil all your dreams and aspirations and to live a
comfortable and worry-free retired life.
* The rising life expectancy means that you need to save for a
longer retired life. Judicious retirement planning is essential to
enable you to live a long and prosperous retired years, with
adequate financial support during those years.
Tips to choose appropriate Retirement plan
Some crucial points to keep in mind while choosing a retirement plan are:
* Age of retirement: The average age of retirement in India
is typically between 55 to 60 years. However, today the concept
of retiring early is also becoming common which means one
requires a steady post-retirement income for a longer time.
Further, with an increase in life expectancy, you need a corpus
which will ensure you continue with the same standard of living
as long as you are alive. Also, with more and more people
opting for nuclear families, one needs to be independent to
take care of oneself and their dependents. Hence, whatever
age you decide to retire, accumulation of wealth corpus is
essential. You can use our retirement fund calculator to find
out how much corpus you will need to live a comfortable and
worry-free retired life.
* ROI during earning years: The sooner you start, the more
will be your savings for retirement. The risk-taking capacity is
also comparatively high when you are young. Your retirement
corpus and income received post retirement should be such
that helps you take care of the day-to-day expenses, any health
contingencies and maintaining the same standard of living.
Confused about what should be your ideal corpus? Use our
calculator to find out how much you need to accumulate for a
dream retired life.
* Expenses after retirement: The health expenses are
likely to increase as you and your spouse grow old. Besides,
inflation will also lead to an increase in the cost of living. Your
savings may be the only source of income you may have after
retirement, so investing in a disciplined manner is highly
recommended to ensure you are able to meet expenses, factor
in inflation, and live a fulfilling retired life.
The key to a blissful and stress-free retirement is to keep your
retirement fund separate from other financial liabilities such as
children’s education or building a real estate property. It is
better to start early so that you can enjoy the power of
compounding on your investments.
Why Bajaj Allianz Life Retirement Plans
When it comes to retirement planning, effective management of your funds, whether it is at the time of accumulation or after retirement, takes precedence. With a proven track record, Bajaj Allianz Life has developed an expertise in managing investors’ fund, which enables the customers to meet their life goals through the yields generated on their investments. Our fund performance speaks for itself. You can check out the performance of Bajaj Allianz Life Funds here. However it is to be reiterated that past performance of the funds are not indicative of future performance.
Bajaj Allianz Life offers a range of retirement plans that help you to fulfil all your retirement dreams. Whether it is an annuity plan or a ULIP-based retirement solution, Bajaj Allianz Life has a product to meet your specific requirement for a retirement solution.
Bajaj Allianz Pension Plans For Retirement :
Bajaj Allianz Life Pension Guarantee
Bajaj Allianz Retire Rich
