Gone are the days when the only security one had for their retired times was being taken care of by the children. But times have changed and today’s older generation wishes to stay independent forever. They do not want to rely on their children for the financial security blanket or any other security for that matter. The biggest joy is when they can still fill their children’s lives with love and affection without expecting any returns.Pension/Retirement Plan-An important financial planning for life after retirement
To be strong enough to sustain oneself financially in today’s expensive world, well devised pension planning
is a must. Saving for retirement gets easier with the help of a retirement plan. A retirement plan is all about investment for retirement income, i.e. saving for retirement while you are still earning. A retirement plan can be opted for as soon as one starts earning and it is never too late to begin saving for retirement.
A retirement plan ensures that even after you stop working, the inflow of a steady earning continues in the form of pension. Many retired government employees do enjoy the benefits of a regular Pension
plan without any pension planning. However, this may not apply to private companies. Some private companies do contribute to their employees’ pension planning and on the same grounds contribute money towards the employee’s retirement plan during the employment period. This investment for retirement income is a tax deferred savings reservoir which allows the tax free accumulation of a fund. Thus, a pension plan is a form of “deferred compensation”.
Investment for retirement income is not easy but it can be done in a way that would not be heavy on your pockets and also would let you reap great benefits over a period of time. It is true that insecurities have caused people to seek pension but there is an added benefit to it, and that is the insurance factor attached to it endow it with a fulfilling feel of all-round security. Types of Retirement/Pension Plans:1.
Plans: This plan guarantees a specified amount of income for your life. After the person dies, the invested amount is refunded to the beneficiary’s nominee.2.
Guaranteed period annuity: In this plan, a person is guaranteed a specified amount of income for a minimum number of years. If the person outlive that period, he is entitled for income till his/her death. In case of the early demise of the person, his/her nominee receives the income till the period is completed. 3
.Annuity Certain: Under this plan, a person gets a fixed amount of income for a fixed number of years. The income stops after the completion of the period, even if the person outlives the period.4.
Deferred Annuities: Under this plan, people first save from his income and thus create a corpus fund for a number of years. This fund is then invested in a specific retirement plan which provides the person an Assured
amount of income till he lives.
Those, who have retired but have no retirement scheme secured under their belt, can also seek a pension plan and in this case, all you will need to do is pay a lump sum amount of money and buy annuities from it. This is called the direct annuity plans. This ensures that it is never too late to make the best out of life.
Choose a plan wisely, as per your requirements, pay as you can and cherish a life of fulfillment and pride forever. With a good pension plan nurtured through life, one can continue to maintain the same lifestyle and the pomp and the show can go on forever. Nothing can match the joy of living a secure life on one’s own conditions and with wise investment for retirement income, you can do that. So, go ahead and purchase a pension plan, if you still have not. Compare all available plans at a one-stop online insurance service provider, get quotes, and invest right. Wise decisions pay in the long run.