You like to live life king size. Why should that change when you retire and have all the time to enjoy the thrills of life? Choose a Retirement Plan and instead of limited possibilities, open your doors to limitless fun and security.
Retirement planning refers to a multi-step process of defining retirement income goals and the strategy required to achieve the said goals. It involves identifying income sources, assessing expenses, executing a savings strategy and managing overall risk. In general terms, retirement planning involves making financial strategies to save, invest and distribute money for your sustenance and survival during retirement.
Retirement planning is not limited to assets and income. It includes a holistic evaluation of these, along with future costs, liabilities and overall life expectancy. Ideally, it is a life-long process, which can be started at any time. However, it is always best to plan your retirement years well and much in advance. Starting your retirement planning when young offers you more opportunities to grow your funds, absorb risk and ensure future security
Tackle impending medical emergencies: As you age, health problems only increase. This means you would be required to shell out more money towards medical expenses later in life. It is expected inflation in this space would rise by nearly 14-15% each year. So, your savings should also grow at the same rate to be able to provide for your medical expenses during retirement.
Effectively combat inflation in the future: Inflation is a sad reality, and in a country like India, inflation is expected to cross the standard 5% estimate. This would imply that by the time you retire, your savings would be worth much less in comparison to the present times. A robust retirement plan will ensure you do not outlive your reserves and have a strong purchasing power even in retirement.
With average life expectancy increasing in India, it has become increasingly important to plan for a longer retirement. The life expectancy figures indicate how long an average individual lives. In India, the average life expectancy of a person aged 60 is 18.022 years. This means that an average Indian lives up to the age of 78. Hence, you need to start planning in advance to maintain your lifestyle and take care of other expenses for such a long duration.
A major worry with increasing age is unforeseen medical expenses. Rising medical costs can be difficult to manage unless you plan for them in advance.
You would like to live your life on your own terms after your retirement. However, more than 65%^^ individuals above the age of 60 depend on others for their daily expenses. This shows how important it is to plan for your retirement and ensure your financial independence
With Retirement plans, you and your spouse can receive regular pension for life.
In some retirement plans, your children will receive a lump-sum amount in the absence of both you and your spouse. This helps you leave behind a legacy for your children.
Apart from enjoying a comfortable retirement, you can also enjoy tax benefits** on the premium paid up to a limit of ₹ 1.5 lakh.