In life, many people underestimate the importance of retirement planning. They feel that the level of comfort and luxury that
they experience in their current lives will continue till they die. This, however, is not true and that is why, it is very important to have strong and comprehensive retirement plans so that you are able to live comfortably even when you no longer enjoy the advantages of a constant salary. If you start to invest early in your working career, it will ensure that you have enough funds to navigate through your retirement years in a pleasant manner.
Some of the reasons why you must start planning for retirement at a young age include the following:
1. Life Expectancy: As of 2014, life expectancy is crossing the 70+ mark for both males and females. With major advancements in technology and medicine, life expectancy is set to increase in the future as well. This means that you would require substantial amount of saving in order to live your retirement years in a pleasant and non-dependent manner.
2. Medical problems: As the human body ages, its immunity decreases and it becomes more prone to diseases and problems. Health problems require expenditure that can create a dent in your savings. In such cases, it might become very difficult for you to balance your savings and medical expenditure in such a manner that it does not cause problems in the future. Remember, Medi-claims do not always suffice and it is best to have a good retirement plan in place.
3. Nuclear Families: The values and traditions, that bound society a few years ago, have rapidly transformed and this has resulted in a number of changes as well. Today, nuclear families are, by far, more popular and couples tend to have only 2-3 children. Not just this, once the children start their own family, their interaction with their parents is often limited. This means that it is important for individuals to plan not just for the upbringing of their children but also their retirement years in a proper manner.
4. Lack of government sponsored pension plans: Unlike countries like the USA and UK, where the elderly enjoy state pension and security benefits, there are no such schemes for the elderly in India. This means that you have to plan your retirement plans in such a way that you are not dependent on any other third source to help you fulfill your daily financial needs.
5. Inflation: The prices of commodities and cost of living are only expected to increase in the future. That is why, it is important to understand this and invest in services and life insurance policies that can help take care of all your future needs in a manner that you will not have to compromise on the quality of your life, at any stage.
In such scenarios pension plans offered by life insurance companies are extremely helpful as they help an individual to plan their retirement in a much more effective manner. In simple terms, pension plans help individuals to build a retirement corpus. On maturity, this corpus generates regular income stream and is referred to as pension or annuity. Hence, pension plans are different from life insurance policy, which protects an individual from any unfortunate incidents.
In conclusion, your retired life will be way more comfortable and luxurious if your income is structured in such a manner that it fits your lifestyle choices in an apt manner and if you have developed a retirement plan that completely protects the assets that you have worked so hard to gain. Remember, the earlier you invest in a strong and beneficial retirement plan, the less hurdles and problems you will have to face later in your life.
Some of the reasons why you must start planning for retirement at a young age include the following:
1. Life Expectancy: As of 2014, life expectancy is crossing the 70+ mark for both males and females. With major advancements in technology and medicine, life expectancy is set to increase in the future as well. This means that you would require substantial amount of saving in order to live your retirement years in a pleasant and non-dependent manner.
2. Medical problems: As the human body ages, its immunity decreases and it becomes more prone to diseases and problems. Health problems require expenditure that can create a dent in your savings. In such cases, it might become very difficult for you to balance your savings and medical expenditure in such a manner that it does not cause problems in the future. Remember, Medi-claims do not always suffice and it is best to have a good retirement plan in place.
3. Nuclear Families: The values and traditions, that bound society a few years ago, have rapidly transformed and this has resulted in a number of changes as well. Today, nuclear families are, by far, more popular and couples tend to have only 2-3 children. Not just this, once the children start their own family, their interaction with their parents is often limited. This means that it is important for individuals to plan not just for the upbringing of their children but also their retirement years in a proper manner.
4. Lack of government sponsored pension plans: Unlike countries like the USA and UK, where the elderly enjoy state pension and security benefits, there are no such schemes for the elderly in India. This means that you have to plan your retirement plans in such a way that you are not dependent on any other third source to help you fulfill your daily financial needs.
5. Inflation: The prices of commodities and cost of living are only expected to increase in the future. That is why, it is important to understand this and invest in services and life insurance policies that can help take care of all your future needs in a manner that you will not have to compromise on the quality of your life, at any stage.
In such scenarios pension plans offered by life insurance companies are extremely helpful as they help an individual to plan their retirement in a much more effective manner. In simple terms, pension plans help individuals to build a retirement corpus. On maturity, this corpus generates regular income stream and is referred to as pension or annuity. Hence, pension plans are different from life insurance policy, which protects an individual from any unfortunate incidents.
In conclusion, your retired life will be way more comfortable and luxurious if your income is structured in such a manner that it fits your lifestyle choices in an apt manner and if you have developed a retirement plan that completely protects the assets that you have worked so hard to gain. Remember, the earlier you invest in a strong and beneficial retirement plan, the less hurdles and problems you will have to face later in your life.
