help plan for retirement and offer the security of insurance.
Advancement in medical care and overall health awareness amongst people has led to improvement in life expectancy. Hence people tend to live longer post retirement than they used to in the past. This is a sign of a progressive society and a growing economy. Living longer is everybody's desire, but it is important that one realizes that there is also a big cost of living longer. As you live longer, you need to have enough savings to spend for the life post retirement. Having been financially independent for most of your life, you would never want to see yourself or your family in a situation, where you would have to depend on others for meeting your routine expenses. A retirement plan would ensure regular income in your retirement age and also ensure financial security to your family in case of your unfortunate untimely demise.
The quantum of savings that you should have at the retirement age should be atleast enough, so that you are not forced to do part-time jobs to maintain the living standards, prior to retirement. While calculating your retirement needs, give due consideration to the Inflation and expected life-style changes that would be age related. In old age your medical expenses tend to shoot up and if you do not have a medical plan you might have to rely on your savings for meeting these expenses. It is important to choose the right investment vehicle or retirement plan to ensure that returns from your savings at least exceed the rate of inflation.
If you are the one looking forward to enjoy retirement an effective planning could help to ensure the same. If you have always dreamt of pursuing traveling and exploring exotic places during retirement, it is just a matter of taking prudent decisions at the right time and taking help from a professional financial advisor.
When one is young and earning, he/she hardly could envisage the need to plan retirement. But with post retirement life becoming an important proportion of one's total life span it is essential that one pays due attention to this aspect at the right stage of one's earning life span. In case of investing in a retirement plan, the best thing is to start as early as possible as your savings are compounded for that many additional years and we all know the power of time as far as investments are concerned. If you start later, then you would have to spare a larger proportion of your earnings into investment, and this might impact your lifestyle. The mantra is to start early, invest consistently and smartly. Besides investing your money smartly, retirement plans also provide you tax savings, which is substantial, if your income falls in the higher income tax bracket.
You have various options to choose from if you are interested in investing in a retirement plan. You may either choose to have annuities for lifetime post retirement or you can opt to receive the annuities for a guaranteed Term and if you still survive beyond the term, the income may continue beyond that. You also have the option to receive your post retirement annuities till the death of the last survivor (your spouse). There are a host of insurance companies offering online Pension plans and you can buy them online after a thorough comparison of the costs and benefits of each. You can also take help of insurance comparison websites to find the best pension plans that matches your needs.