A pension plan is all about planning a monetarily-secured lifestyle in the old age. When they are young, people are usually inclined to be positive and do not feel that there is any requirement of retirement plans. But is that the correct approach?
Following are the four reasons why you should consider it -
1) Respected Retirement: A rupee saved now will turn into a heavy sum later on; let’s say in about twenty to thirty years. Retirement planning must begin when you are in your thirties. If you begin at this age and save minimum 10-15 % of your entire earnings all months, in that case you will be able to save an amount which shall offer you a respected retirement.
If you start planning in your forties, then you will need to save more and that might put a strain on your budget. You might also have to compromise on your style of living which you may not like. Hence, it is better that you begin early with planning and collect a definite portion of your earnings for investing in a pension plan. By the time you stop working at the age of 60-65 years, you will have a sum which you will be able to live a respectful lifestyle.
2) Power of Compounding: As we have just talked about that it is better to begin early when we are thinking about pension plans. The reason being that it offers you the power of compounding. You might be saving a smaller amount, but if you are doing it for a longer period of time, even the smaller amount of money will increase in multiples.
When your contribution reaches maturity, that is the period of time after which you get your returns, you can receive a respectable collection of money in hand.
Pension plans offer returns in two ways. You might choose one time return so that you receive an ample amount of money after a specific time. Other than that, you can choose an every month pension plan. In this, you will receive regular payment all months. This is just like a regular payment a government employee gets.
3) Mandatory Savings: As pension plans need every day investments, you will be automatically enforced to put in a definite sum of money in a set time. In this manner, you slowly get into the habit of making an investment. This habit actually helps in growing a large sum for the future.
When you are young and monetarily adequate, you might not know the value of savings and tend to spend on making yours and your family’s standard of living better and better. That is OK. But you should also save for the tough times. Pension plans assist you in doing just that.
4) Income Tax Deduction: There are pension plans which are entitled for tax deduction in the IT Act. Hence you are able to demand tax deduction in your Income Tax Return (ITR) all years and save on tax. That will moreover be a kind of saving for you, indirectly.
PNB MetLife, a leading insurance company in India offers all-inclusive Retirement plans guarantee a monetarily safe retirement and assure you peace of mind. So that you can make your dreams a reality anytime, anyplace.
Following are the four reasons why you should consider it -
1) Respected Retirement: A rupee saved now will turn into a heavy sum later on; let’s say in about twenty to thirty years. Retirement planning must begin when you are in your thirties. If you begin at this age and save minimum 10-15 % of your entire earnings all months, in that case you will be able to save an amount which shall offer you a respected retirement.
If you start planning in your forties, then you will need to save more and that might put a strain on your budget. You might also have to compromise on your style of living which you may not like. Hence, it is better that you begin early with planning and collect a definite portion of your earnings for investing in a pension plan. By the time you stop working at the age of 60-65 years, you will have a sum which you will be able to live a respectful lifestyle.
2) Power of Compounding: As we have just talked about that it is better to begin early when we are thinking about pension plans. The reason being that it offers you the power of compounding. You might be saving a smaller amount, but if you are doing it for a longer period of time, even the smaller amount of money will increase in multiples.
When your contribution reaches maturity, that is the period of time after which you get your returns, you can receive a respectable collection of money in hand.
Pension plans offer returns in two ways. You might choose one time return so that you receive an ample amount of money after a specific time. Other than that, you can choose an every month pension plan. In this, you will receive regular payment all months. This is just like a regular payment a government employee gets.
3) Mandatory Savings: As pension plans need every day investments, you will be automatically enforced to put in a definite sum of money in a set time. In this manner, you slowly get into the habit of making an investment. This habit actually helps in growing a large sum for the future.
When you are young and monetarily adequate, you might not know the value of savings and tend to spend on making yours and your family’s standard of living better and better. That is OK. But you should also save for the tough times. Pension plans assist you in doing just that.
4) Income Tax Deduction: There are pension plans which are entitled for tax deduction in the IT Act. Hence you are able to demand tax deduction in your Income Tax Return (ITR) all years and save on tax. That will moreover be a kind of saving for you, indirectly.
PNB MetLife, a leading insurance company in India offers all-inclusive Retirement plans guarantee a monetarily safe retirement and assure you peace of mind. So that you can make your dreams a reality anytime, anyplace.
