Work hard while young to have a happy and cheerful old age

Work hard, save ample and retire early to enjoy life seems to be the new mantra for the working class heroes of the society today. Think once again! You can work hard and save ample to invest but are there sufficient retirement products available in the market today for those who need a regular income when they retire?

Well after a long time, life insurance companies have once again introduced retirement pension plans, with assured returns as mandated by the insurance regulator. The article will guide on how these new offerings can become your investment vehicle to generate retirement income.

Insurance companies have recently launched plans that are designed as deferred annuity products. You pay premiums for a number of years to accumulate a corpus. After retirement, the corpus is used to purchase an annuity with the same insurer, which allows you to draw a pension after retirement.

Retirement pension policies provide you with financial security so that when your professional income starts to recede, your pension plan comes into action and you continue living with pride without bargaining on your living standards. They act as a tool to invest regularly during your work life span and return you with investment in lump-sum at your retirement along with annuity income which is provided in regular intervals.

However, financial experts advise though these new retirement pension plans assure capital protection and a minimum level of returns, these products should be considered along with other investment avenues, if investors have to beat inflation. Investors who would like to maximize their returns can consider combining these investment vehicles with debt-oriented balanced mutual funds, debt funds and the Public Provident Fund etc.

In order to create the best retirement pension plan of their life, an individual must make proper assessment of their finances and start planning at the early age to bank upon the maximum benefits from the plan in life. Pension plans can help you build corpus over the time which you can utilize to fulfill your dreams. Starting retirement planning early in your life is even easier as you have lesser responsibilities to handle plus there are hardly any liabilities to meet. It helps you reap compounding benefits for more time; hence, your corpus will be more.

In countries like India where government does not provide any social security like the ones in western countries, it becomes even more crucial to have your own retirement pension plan in place to meet any uncertainties in the future. It will not only boost your confidence to live with pride but will also enhance your resistance power after the retirement. Thus, when you see such benefits behind the retirement plans it becomes crucial to draft a pension plan well ahead of time.

Some factors which must be considered by an individual while planning for their retirement and pension are like you must evaluate how much income or corpus you require in order to lead a satisfied life after your retirement. Remember that your annual income during retirement should be enough to meet your retirement expenses. Therefore, it is important for you to gauge the amount well while planning your retirement puzzle. Learn to start from day-to-day expenses such as Food and clothing, Housing, Utilities, Transportation, medical, taxes etc. Inflation is directly proportional to your expenses in retirement. Also, the needs and requirements will change from year to year. For instance you’ll be free from your home mortgage or your children’s education but will come up with new expenses such as health care and insurance, may increase as you age. Lastly it is advisable to start investing in your retirement pension plans at the right age and must allocate your money smartly in the plan which must be capable of fulfilling your desires.

Tags  : Retirement Pension Plan, Retirement Plan company, Retirement Insurance Company, Retirement Insurance Policy, Retirement Fund

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Retirement Pension Plan