Written by : Knowledge Centre Team
2026-01-10
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6 minutes read
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For self-employed people, planning for retirement carefully and diligently becomes a financial necessity. This is because, unlike salaried employees, self-employed individuals do not have the advantage of employer-sponsored retirement benefits like EPF or pensions. The responsibility of building a safe future rests entirely on their shoulders.
This is why it is even more important to choose the right retirement plan that does not just secure your years post-retirement but also offers flexibility, tax benefits, and assured income.
Retirement plans are life insurance plans that allow you to save and grow your wealth to meet your future financial goals. Based on your job profile and lifestyle, you can select your ideal retirement plan.
Key Takeaways
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4 Best Retirement Plans for the Self-Employed by Canara HSBC Life Insurance
Self-employed people usually consider buying a retirement or life insurance plan a financial burden because their income is not fixed. Buying the best retirement and pension plan will provide self-employed professionals with financial security. If you are also a self-employed person looking to secure your future, these 4 retirement plans will help you devise your insurance plan and live a worry-free retired life.
- Pension4Life: With the Pension4Life Insurance plan by Canara HSBC Life Insurance, you can save a surplus amount with the help of an annuity. They provide seven different annuity options for you to choose from. Apart from that, the plan offers guaranteed lifetime income, which is directly credited to your bank account. It builds a safety net for the family in case the policyholder passes away, with the return of the purchase price.
- Smart Guaranteed Pension: Smart Guaranteed Pension plan is a Non-Linked Non-Par Individual Deferred Annuity made for people who prefer long-term certainty. With this plan, you can lock in your retirement income and secure a guaranteed pension amount for life. Also, it offers guaranteed lifelong income along with one-time investment or limited premium options. You can easily select the annuity payout mode, be it monthly, quarterly, half-yearly, or yearly.
- iSelect Guaranteed Future Plus: While iSelect Guaranteed Future Plus is primarily a savings cum protection plan, it can be personalised for retirement planning. Especially for self-employed people who want to collect wealth systematically, this plan is great. It provides the flexibility to choose the benefit payout (lump sum or regular) and also comes with a premium protection benefit in case of the policyholder's demise. iSelect Guaranteed Future Plus is ideal if you want your retirement savings to support your family's future in your absence.
- Saral Pension: Saral Pension plan is a standard, non-linked annuity plan that is simple to understand and enrol in. It is designed in line with IRDAI guidelines and offers a transparent and standardised product to all customers. It offers a lifetime annuity with return of purchase price, a single premium payment option for lifelong benefits, and a simple product structure with no hidden terms.
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Why is it Necessary to have a Retirement Plan for the Self-Employed?
Having a retirement plan is necessary to live a financially peaceful life post-retirement. As long as you are collecting your monthly paycheck, it is easy to pay your expenses. However, after you retire, you must have enough money set aside to live comfortably for the rest of your life. Taking care of your expenses even after retiring becomes efficient and easier with a proper retirement plan in place.
A retirement plan is crucial for self-employed people because:
As a self-employed person, monthly earnings can be different and unpredictable. A retirement plan helps you create a stable post-retirement income.
Since there is no fallback pension plan or provident fund, you need to create one for yourself.
Ageing can bring medical expenses. A retirement fund will help ease this financial and mental burden.
A consistent stream of income helps you maintain your current lifestyle even during inflation.
How to Prepare for Retirement?
It is important to note that many people fail to prepare for retirement because they begin too late. Many wait for the “perfect time” to begin saving, but the truth is that moment rarely comes. Instead, the best approach is to start small, with whatever you can manage, and increase your contributions over time as your income grows.
Another reason why people don’t start retirement planning is that a large portion of their income is always spent maintaining their current lifestyle, such as shopping and television binges, leaving less room for retirement. While it is impossible to deny the necessity of meeting immediate needs, finding a balance between the two is necessary.
What is Your Estimated Retirement Age?
You can determine the amount that you need to save based on the age at which you intend to retire. Someone planning to retire at the age of 60 might need to save more than a person planning to retire at 75.
Every individual decides their estimated retirement age depending on different factors like their family size, income, and work capacity. However, it is important to understand that life is unpredictable. Unexpected health issues or changes in family responsibilities could alter your retirement timeline, so your plan should include a margin for flexibility.
Understand your monthly expenditure: This should involve all the expenditures you might be making every month, such as groceries, light, gas, and electricity bills.
Your personal needs: Ask yourself about the kind of lifestyle you wish to maintain after retirement. Will you pursue hobbies, travel, or simply enjoy leisure time? It would be best if you tried to estimate the cost you would be willing to spend on yourself based on your lifestyle goals. This can also include your luxury plans, outings, and even travel trips!
Your family's needs: Take into consideration the requirements and expectations your family might have from you. For instance, include the tuition fee of your children here.
It is not that difficult to understand the average monthly needs of you and your family. Calculate and understand this cost. Based on this, you must choose your retirement insurance plan.
Develop a Saving Plan:
Once you have an estimated idea for your retirement needs, you need to create a disciplined savings plan for yourself and stick to it. The amount may be as small as ₹1,000 per month.
Being self-employed, the income may differ. However, you must stick to a minimum savings amount that you decide on. With growing earnings, you can evaluate your goals to increase this amount accordingly.
3 Typical Mistakes While Choosing the Best Retirement Plan
Being self-employed means you are most probably used to earning by yourself for most of your life. The idea of income stopping can be quite stressful. As a self-employed person, you might not receive that financial support after your retirement. That is why relying on others for your safety, food, security, and healthcare is neither practical nor secure.
Hence, to enjoy a stress-free retirement, it’s crucial to choose the best retirement and pension plan by avoiding the following 3 common mistakes:
One of the biggest mistakes is miscalculating how much you’ll need to sustain your lifestyle post-retirement. Many people ignore inflation and future medical expenses when planning. Remember, once you retire, your monthly income will stop, but your expenses won't. So, calculate your expenses wisely and take inflation into account while figuring it out.
You are not considering the risks involved in your investment pattern. For example, inflation. As time passes, the price of things and commodities will also keep rising. So, you will need to calculate the amount that you need each month to maintain your current lifestyle in your future.
A rigid retirement plan could limit your options. That’s why it’s important to select a plan that offers portfolio flexibility, allowing you to switch funds, adjust premiums, or boost your investments when needed. Several savings and pension plans, like those from Canara HSBC Life Insurance, provide this flexibility.
Conclusion
Being your own employer means you're solely responsible for your future. Depending on others can be stressful and unreliable. Instead, take control of your financial well-being by starting early, saving regularly, and selecting the right retirement plan.
A retirement plan helps you secure your old age with regular income, maximise your tax savings, curb unnecessary spending in early life, create wealth from small savings, and earn stable interest and returns.
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.
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Retirement - Top Selling Plans
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.
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 Plan options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Retire Grand with Flexi Benefits
Smart Guaranteed Pension
- Guaranteed Lifelong Income
- Limited premium payment term
- Multiple annuity options
- Option to defer the annuity payments
Save, Dream, Plan. Live Peacefully
iSelect Guaranteed Future
- 4 Plan options
- Option to choose premium payment term
- Get Tax benefits
- Premium protection cover
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