As people tend to live longer now retirement life is almost as big a phase as the other phases in life. Retirement is not about sitting idle and worrying about one’s health but it is rather a phase when you are reborn and you can live your life the way you want.
It is that point in life when you are not burdened with the routine responsibilities and have much more time with you which you can look forward to spending the way you want.
No doubt that retirement age has its own challenges and opportunities but being prepared well in advance will help you to tap the opportunities and meet the challenges with courage.
For those who are not prepared well for retirement, the challenges are tougher while the opportunities only get diminished.
Retirement planning cannot happen overnight and the earlier you take up the job the better and easier it is to plan. People undermine the importance of retirement planning but only to realize that it was their mistake when it is too late to mend.
By having a retirement plan you draw out your retirement needs and desires and accordingly work towards accumulating a retirement corpus that would be enough to take care of your needs and desires.
A retirement plan is the foundation of a financially secure retirement life. The earlier you realize this the better and easier it is for you to build your future. If you are married it is best that you have your spouse also participate in this planning process.
The first step of the retirement planning process begins with estimating how much you need to save and how much you have already had in savings. If you find this exercise a bit difficult you can call for a financial advisor who will not only help you understand your savings need but also guide on the various avenues for retirement planning.
Choosing the best Pension Plan
Pension plans or retirement plans are the most obvious choice when it comes to retirement planning. There are quite a few options when it comes to choosing a pension plan and you need to be aware of these as it will help you make a thoughtful decision. The choice of a retirement plan should be done on the basis of your personal Risk profile and your investment goals.
Broadly, you can choose between an Endowment Plan which is more secure but is unlikely to offer you as good a return as Unit Linked Pension Plan (ULPP). With a unit-linked pension plan, you have significant flexibility in choosing your investment style and even varying the investment mix between debt and equity. With a ULPP, you can look forward to higher returns than a typical endowment plan.