Retirement, like old age can't be wished away, but it can be planned. Retirement planning is a much hyped
yet less pursued part of any average financial portfolio. One seems to ignore discussing retirement and its
planning, either because it appears too far away or because there are too many decisions to make. We'd like
to guide you along a simple yet effective route to understanding retirement options.
Retirement Costs
If you try to guess the monthly pension
amount you’ll eventually need, chances are you’ll get it wrong. That’s because, you probably wouldn’t have taken
inflation into account. And that’s not all. There are many factors that need to be carefully considered, before
one can arrive at an accurate pension amount. To decide on the ideal retirement pension plan, consider what major
events and expenses of your life will be done before you retire. Don't be afraid to over estimate your retirement
expenses a bit because you may incur costs then that you can not imagine now. For instance, most people who considered
retirement options in the 80s possibly did not account for technology costs in day to day living which they bear today
like cell phone bills and internet connections.
Financing Your Retirement
The only way to make any good retirement plan a
success is to maintain regular income sources. Once you gauge your expenses after your retirement, appraise what sources of
income you will have then. Also assess how you can make your current assets work optimally for you and assist in retirement
planning. If you have invested in AEGON
Religare Pension Plans, you can
count on at least one reliable source of income.
Key to good retirement planning is to have an
early start and steady growth. After evaluating your expenses post retirement, choose a plan which can help you achieve
that amount by investing reasonable premium over a period of time.
For example AEGON
Religare Pension Plans offers the 'Increasing Premium' option which allows you to increases the premium year
on year to address the inflation cost. You can pay regular premiums which increase by 5% or 8% of the first year's premium,
every year. Thus ensuring that you always maintain the current lifestyle, even after retirement.
Taking these simple steps will ensure you have a happy retirement by making your money work as hard as you do.
Do read about ULIPs and
Child Plans
if you are looking for more life insurance investment options.
One of the other common reason for the success of
unit linked insurance plans is that all ULIP investments qualify for tax deductions under Section 80C of the Income Tax Act.
Irrespective of your plan and fund options you can enjoy these tax redemption benefits.
However, once you have decided to invest in ULIPs, you will realise that it has many unique benefits
which a good investment plans should have.
