Vishal was a hard worker, everyone knew that. He stayed up night and day to study for his exams. He bagged a cool job at a corporate. Life was hard, but he knew that an early retirement would solve everything. He started investing in a retirement plan in his early 30s. Imagine his shock when he was barely able to get by. The premium was too high and the retirement plan was not good enough.
Retirement is often envisioned as the golden years of an adult’s life, where they can finally relax after decades of hard work. However, the secret recipe for this happy future is smart retirement planning. It enables financial cushioning post-retirement. Retirement planning comes under the umbrella term of financial planning. It empowers and guarantees a steady source of income post-retirement.
India has seen a rise in retirement planning in recent years since 2018. The reason is the lack of social security provided by the government. This is especially difficult for private-sector employees. Vishal didn’t start quickly enough and when he did, it was too late. Retirement plans are therefore a necessity in India and require early planning.
Why is Smart Retirement Planning Important?
Due to the lack of a consistent pension scheme, retirement plans are gaining momentum in India. Since the pension scheme of the public sector has dwindled, it has become equally important for every working individual to start saving. Where government employees had a pension plan previously, it was removed in the Budget session of 2003-2004.
8 Reasons Retirement Planning is Pivotal for Financial Security
1. Healthcare Emergencies
2. Rate of Inflation
3. Tax Savings
4. Early Retirement Goals
5. Richer Retirement
6. Easy to Build Retirement Corpus
7. Essential for Nuclear Families
8. Lack of Pension Scheme and Social Security
A good retirement plan will take care of three things post-retirement:
- Healthcare needs post-retirement
- An emergency fund for the future
- A source of income post-retirement
How to do Smart Retirement Planning?
Retirement planning works best when started at an early stage. Financial situations are susceptible to change, and it is best to work out a plan when early. Most people wait until their 30s, but the planning can easily be done earlier.
- The first step for retirement planning is establishing tangible retirement goals. Without a concrete retirement goal in sight, it can become difficult to strategize.
- The second step is an assessment of the personal financial situation, keeping in mind inflation and taxes.
- Thirdly, research on prospective investment ideas, including life insurance and health insurance plans.
- Strategize to ensure that retirement savings are sufficient.
Retirement planning is no longer an option. It has become a necessity. Financial goals today must account for retirement corpus. Some important takeaways about retirement planning:
- Early retirement planning is smart retirement planning.
- Retirement planning cannot stop after retirement.
- Differentiate between wants and needs and be practical about both.
- Follow simple steps to plan and save retirement corpus effectively.
How Invest 4G can Help you with your Retirement Planning?
Canara HSBC Oriental Bank of Commerce Life Insurance allows you to identify important builders for retirement corpus. Invest 4G is a Unit Linked Insurance Plan that allows you to plan a happy retirement. Invest 4G plan has the following features:
- Limited premium pay for elders.
- Loyalty additions that boost wealth creation.
- Flexibility - pay once or pay for a limited time period.
- Multiple Portfolio Management
- Systematic Withdrawals
Retirement plans can be accessible to all. It needs effective planning and is aided by smart strategizing. Choose the right retirement plan for yourself and your family’s future. The 4G Plan is a safe alternative for smart retirement planning and will ensure a financial cushion for you post retirement.
The best retirement and pension plan allow the individual to maintain a good standard of living. A pension plan is necessary even if you want an early retirement. Smart retirement planning requires a financial assessment. Retirement plans are flexible and can be tailored accordingly. To fight the inflationary forces of the market, a retirement plan usually involves deferral of payment for a retirement fund. Planning for retirement ensures a steady source of income for senior citizens. It guarantees a nest egg for one to fall back on post-retirement.