Pension Plans

help plan for retirement and offer the security of insurance.

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How to Go About Pension Planning

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Many people are very excited about retirement. A retired life is a life people want to spend pursuing their hobbies, doing social welfare or simply relax. Our entire life is spent to build a career, raising a family and work for money. Whole life is spent shouldering responsibilities of the house and we look up at life post retirement to finally live for ourselves and celebrate the remaining days of our life.

But to live a great retirement planning needs to start now. With profound planning many people are retiring as early as at 40 years of age. Throughout life we work for money and it is an enviable position when our money works for us, so much so that we don’t require working at all to support our lifestyle rather work only for passion. To see this time in our life proper planning needs to be done.

Some important things to start doing in your life to enjoy a dream retirement are discussed below.

Save!!

Not every penny you make is meant to be spent. Learn to discipline yourself and set out a portion from your earnings that you are going to save and use the remaining money to pay for utilities and leisure. World famous American business guru Brian Tracy often says in his discourses that if you cannot save then the seeds of greatness aren’t in you. You need a much disciplined mind to save systematically. Habit of saving lets you be in a situation where in capital formation can takes place and provides you ample opportunities to grow your money. Rather than spending money from your earnings and save what is left, do it the other way round. Set a saving benchmark for you and spend the rest amount called disposable income. This habit would push you forward in line of your dream retirement.

Don’t live in assumptions!!

Many of the highly optimistic people choose not to be that far sighted. They believe to enjoy the present to the fullest and leave their retirement age to chance. They believe that they might strike some windfall at that age and don’t bother to plan for that so early. They think life is too long and retirement is going to take place after a distant future, probably measurable in centuries or millenniums. If you belong to that lot, halt now. This happy-go-lucky thinking might end you up with a trouble filled old age, wherein you would either have to toil in part time jobs to sustain yourself or live on the mercy of your children or an old home. Be practical and start investing money in funds.

Work hard in your earning life!!

This is in fact the most important and serious point in this article. Your earning life is a very important phase of your life. You need to work hard and be competitive in your profession. Try creating multiple sources of income so that you have enough income that could be divided judiciously in saving and spending. The idea is that you should have enough money with you to plan a good future for yourself without compromising on present life. Each moment of life is precious. You shouldn’t have much repents of living a dull youth in order to build a good corpus for retirement. A balanced saving and expenditure should be practiced to enjoy every phase of life. In order to do that you need to regulate your life and build your career smartly. You should be earning enough money to happily but not foolishly live the present and also putting in money in smart investment schemes in order to secure a blissful retirement.

Compare and invest in investment cum Pension plans!!

In the above three points we highlighted the importance of saving and leading a regulated sincere life. Now the important part of the discussion comes i.e. what to do with the money saved or how would my money work for me? The saved money can be invested in a wide array of schemes to pay off returns. Your investment portfolio should be carefully designed to optimize the returns and balance out the risk. Many people invest in real estate and live off rental income in their old age. Having real estate also makes one eligible to enter into reverse mortgage options wherein you mortgage your house to a bank. The said bank pays you regular income till the end of your life or up to a specified period and afterwards the ownership of the house transfers to the bank. This is a very good option and becoming popular among retired people not having heirs. Another very bright and popular option is to go for pension plans provided by life insurance companies. In these plans you start investing in a fund called pension fund up to a stipulated period. Post Maturity in the scheme the insurance company provides you monthly payouts called pensions. These pensions are very vital to support your needs and to keep your dignity intact. With the money coming from these schemes you can happily look after the needs of yours and your spouse’s.

The key is to start early in such schemes in order to build a stronger corpus. Compare pension plans to churn out the best options and save money while availing attractive features in your plans.