Planning for Retirement? Make use of a Retirement Plan Calculator
We start off our career fill of energy and happiness, that yes finally we can carve a niche for ourselves in life through our jobs. However, do we ever think about the time that we will end our jobs, in short do you ever think about your retirement? Of course, you wouldn’t even take into consideration this factor when you’re yet at the nascent age of your career. However, when you are in your mid stage of your career it might be time to think about planning for your retirement.
Retirement planning is essentially the allocation of finances for retirement. In essence, it refers to setting aside a portion of your earnings in order to obtain steady financial independence, so that employment is optional, rather than a necessity.
A retirement planner refers to a financial profession who helps set up finances and investments for retirement. An informal term, a retirement planner can receive a number of accreditations and certifications. These professionals are known for offering many retirement plans, which are available in the Indian market. They are also offered by various life insurance companies, and not only offer the benefit of insurance, but also investment. There are typically two phases that are involved in a retirement plan.
This phase is then followed by the vesting age, which refers to the age when a person begins to get payouts from their kitty. This amount can be chosen by the person. The vesting age is usually between 40 to 70 years. The period where the person receives pensions is known as the annuity phase, during which a person can withdraw up to 33% of the accumulated amount at one go. The rest of the money is paid as pension.
There are four unit-linked insurance plans that are available for retirement in the market. All of them are single premium policies, where a person has to pay the premium amount just once, at the beginning of the plan tenure. Of course, there are also traditional retirement plans which are defined benefit pensions that provide fixed retirement benefits every month.
Purchasing these plans online is extremely useful, where people can browse through the wide variety of policies that are available in the market. They can also use online tools such as the retirement planner calculator.
The retirement planner calculator helps a person to understand how much they would have to save to have their wealth increase, before their retirement. It also helps a person plan for the same as well. After entering in all the relevant data that is required, the tool processes the data and makes the required calculation.