An average Indian lives for 69 years, with women expected to live for 70 years, whereas men for approximately 68 years. This increase in life expectancy means that you need to have saved diligently for your old age. Most people retire at the age of 60 years, which means there is considerable time left after you stop earning a regular income, however you still need to sustain your family and yourself. This highlights the importance of planning for retirement early on in life when you are in your 20s.
If you have judiciously been setting aside a part of your income for your retirement corpus through a pension scheme, endowment plan or others, you are at an advantage as compared to others. This means you are prepared to enjoy a comfortable retired life and are well equipped to deal with untoward life events in the future. You can take care of your dependants, your health and medical needs if any as well as fulfil your dreams right into the sunset years of your life. Lets us take a look at a few signs which are an indication that your planning for retirement is foolproof:
- Periodic review of your portfolio: If you are aware that you need to employ different strategies at different stages of your life to create wealth for the future, you are on the right track. You might have invested in ULIPs or mutual funds in your 20s to get higher returns at the same time taking more risk. However as you approach your 40s, you plan to shift your money into low risk instruments to save them from any market fluctuations and optimise your savings. You have already purchased a retirement plan such as a ULIP that offers you the flexibility of investing as per your risk appetite with a plethora of funds to choose from. Benefit from market movements by investing in equities, or switch to debt when you wish to secure your investments.
- You know how much you need to save: Before you invest in a pension scheme or a retirement plan it is important to understand the funds that you would require, once you do not have a regular monthly income. The first step is to calculate your monthly expenses on retirement. This is where you need to factor the rise in inflation that could impact your lifestyle choices and purchasing power. Ignoring the effect of inflation could make your savings insufficient for your retired life and make you financially vulnerable. If you have intelligently computed the amount you would require to tide through the retirement phase of your life, and are on the path to accumulating the corpus, it is a good sign.
- You have created a sizable corpus: You have been regularly investing in a pension scheme and are close to achieving your financial goal of planning for retirement. Whether you want to travel the world or realise any other long lost passion, which you did not have time for when you were working, you now have the funds to pursue. You no longer need to postpone your dreams and wishes that you have been postponing since long. You can finance your ambitions or that of your spouse and even take care of both of you should you be diagnosed with a medical condition. After all, you have chalked out your retirement needs beforehand and invested diligently over the years for a retired life that comes with such benefits!
These are a few indicators of a well planned approach to retirement. It requires a long commitment to wealth creation. ULIPs come with a 5 year lock in period and hence are a long term investment option perfect for accumulating a retirement corpus. The invest 4G plan from Canara HSBC Oriental Bank of Commerce Life Insurance offers 4 different portfolio strategies and 7 fund choices as per your risk appetite that helps in your retirement planning. Customise your policy as per your requirements while switching between funds and redirecting future premiums.
A ULIP is the right investment tool for those looking to realise important milestones in their life. Be it educating your children abroad or saving for a comfortable retirement, you can rely on a ULIP for your needs. Tide the uncertainties of your future with a ULIP which offers dual benefits of investment and insurance, along with the option to choose from debt, equity or hybrid funds to help your money grow.