Ageing is a natural process that we all will undergo. While we often think about it in terms of our health and lifestyle, financial preparedness has topped the discussion table in recent times. Many people assume that putting some money in the bank account would be more than enough, but is it? What’s the real cost of ageing? Is it only about savings, or does it go beyond that? These are some of the questions that are common to all of us.
Rising medical expenses, lifestyle adjustments, and unexpected financial requirements are all situations that you must prepare to face in your retirement years. Today, let’s closely explore some of the well-structured retirement plans, not just as an option but as a necessity.
Key Takeaways
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As your golden years approach or you have reached a point in your career where you wish to plan retirement in a timely manner, a financial roadmap is required. This planning part, overlooked many times, plays the most important yet underappreciated role in ensuring a secure retirement period for you.
It has to be understood that a financially secure golden period does not happen overnight. It requires early planning, the right investments, and a solid understanding of different savings and investment options.
Hence, retirees must ensure two important things:
Their funds must last longer while maintaining their standard of living.
The idea of securing loved ones in case of an unexpected event.
Expense Category | How Retirement Plans Help |
Medical Expenses | Provides a financial buffer for hospitalisation, medicines, and long-term care |
Daily Living Costs | Ensures a steady income to cover essentials and lifestyle expenses |
Inflation Impact | Helps counter rising costs by offering investment growth |
Emergency Needs | Offers liquidity and financial support during crises |
Legacy Planning | Allows wealth transfer to loved ones or charitable causes |
According to the United Nations, India’s senior population is expected to nearly double by 2050, increasing the need for structured retirement planning.
Now, for those of you who have understood the essence of planning out your golden years, it’s time to explore some of the top retirement plans. Though there are a plethora of schemes and options, the following are a few hand-picked options:
Once you’ve retired, having a steady income can offer you financial independence.
Following are those two types of plans that can fulfil this purpose:
The National Pension System (NPS) is a government-backed retirement plan designed to help individuals build a secure financial future. It offers market-linked returns, tax benefits, and the flexibility to invest in equity and debt funds. For instance, imagine Anirudh, a 35-year-old IT professional contributing regularly to NPS. By retirement, he accumulates a substantial corpus, ensuring a steady pension for his golden years. With disciplined investing, NPS not only provides financial stability but also peace of mind, making it a smart choice for those planning ahead.
EPF and PPF are long-term savings schemes that help individuals build a secure retirement fund with tax benefits and guaranteed returns. Take the example of Meera. She’s a school teacher who consistently contributes to her PPF account. Over the years, her savings grow with compounded interest, providing her with a financial cushion post-retirement.
Similarly, Girdhari, a private-sector employee, benefits from EPF contributions, where both he and his employer invest towards his future. These schemes ensure that individuals have a reliable source of income after retirement, making them essential for long-term financial security.
ULIPs combine investment, insurance, and tax exemption perks. This plan offers market-linked returns while ensuring you have a corpus ready for your golden period. Understand it by considering yourself as Prem, a 35-year-old professional who starts investing in a ULIP tailored for retirement. Over time, his premiums are allocated to equity and debt funds, growing his wealth while ensuring life coverage.
By the time he retires, his ULIP has built a substantial corpus, allowing him to enjoy financial independence. With tax benefits and flexible fund-switching options, ULIPs provide a balanced approach to wealth creation and security, making them a smart choice for retirement planning.
Back in the day, manual calculations were the only approach to retirement savings calculations, but today, you can leverage digital tools. A retirement calculator India can help estimate how much you need to save to maintain your desired lifestyle post-retirement. Factoring in inflation, expected expenses, and investment growth helps in selecting the right retirement investment options.
At Canara HSBC Life Insurance, we offer retirement investment options and a calculator. If you go by the following steps, you’ll be able to access one of the most user-friendly retirement calculators ever.
Visit Canara HSBC Life Insurance's official website.
Look for the side menu on the top right side, next to the Login option.
A list would appear with dropdown options; go to Tools & Calculators to select the retirement calculator.
A retirement planning calculator is a simple tool that gives you an idea of the corpus you can accumulate with a regular monthly investment for your golden years.
The above calculation and illustration of figures are indicative only and not on actual basis.
The earlier, the better. Ideally, start in your mid-20s or 30s to take advantage of compounding and long-term growth.
It helps estimate the savings required to maintain your lifestyle post-retirement based on inflation and expenses.
Yes, many retirement plans offer tax benefits under Sections 80C and 10(10D) of the Income Tax Act.
You may struggle with financial independence, rising healthcare costs, and inflation during retirement.
Yes, depending on market conditions and financial goals, you can adjust investments in certain plans.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
