Retirement offers an opportunity to spend your golden years of life the way you wish with the same or better lifestyle that you’re enjoying today. Retirement is certain, and one continues to live even after his or her retirement.
Therefore, the expenses would exist even after retirement. Both expected as well as unexpected expenses would occur. The expected expenses would include household expenses, children’s education fees, discretionary expenses, EMI payments, etc. The unexpected expenses would include a medical contingency or some other emergency.
Hence, you would require a retirement plan to meet such expenses.
Why Retirement Planning is Important?
Retirement planning refers to the process of planning your short as well as long-term finances for achieving your financial dreams during your working years as well as retirement life. This process involves analyzing your financial goals, expected future cash flows, and current financial position to develop a comprehensive retirement roadmap. Retirement plans often try to account for every possibility that may happen in retired life, from estate planning to applying for Social Security Survivor benefits.
Without a prudent retirement plan, you might be running the risk of outliving all your savings and having difficulty in maintaining the desired post-retirement lifestyle. You would also run the risk of not accumulating enough corpus for your dependents due to uncertain and unfortunate events like a medical emergency, disability, etc.
Top Benefits of Retirement Planning
Proper retirement planning helps you determine how much to save today for your retirement; how and where to invest your savings for desired returns, how to safeguard your assets, and how to make sensible use of your retirement income.
Retirement planning helps you maintain the desired lifestyle in your post-retirement phase of life. It offers financial security both to you as well as to your dependents by allowing you to make judicious investments during your working years. The key benefits of retirement planning include:
1. Medical Emergencies
With age come health-related issues. Medical expenses could cause a huge dent in the income post-retirement. A failure here might lead you to liquidate all or some of your assets to meet such medical expenses. It’s important to remember that medical claims may not always suffice.
2. Inflation
You don’t just have to worry about inflation but account for it as well. You must take into consideration inflation while calculating your post-retirement lifestyle expenses.
3. Depending on Your Kids is Unfair
For most Indians, their retirement planning is for their children. But depending on your children for financing your retirement is unfair. For any young couple to be responsible for three generations (their parents, themselves, and their kids) isn’t easy in any scheme of things.
Benefits to Look for in a Good Retirement Plan
1. Flexibility and Personal Fit
The whole point of a retirement plan lies in its ability to be personalized to one’s needs. You must be able to continue contributing even during difficult times.
2. Easy and Simple to Understand
The joining procedures must be easy and the documentation requirements should also be simple to understand. Most of the retirement plans nowadays allow for online contribution which is easy and convenient.
3. Good Returns
It’s important to understand how your hard-earned money is invested, your returns, and projected savings in the long run. A good retirement plan must offer maximum returns on your investment.
4. Transparency
It’s something you must consider while choosing a retirement plan provider. Your retirement plan must be transparent with no hidden charges. Your relationship manager must be able to answer all your queries.
Increasing Awareness About Estate Protection
Estate protection is vital, particularly in your retirement years. You need to have a more in-depth understanding of how you can protect your estate and your beneficiaries through services like Will Power estate protection. In this way, you’ll have peace of mind as you deal with the legalities of protecting your estate.
It’s crucial to ensure that you have a grant of probate, a legal document necessary in administering your estate plans and wishes in the event of your death. With a grant of probate, the executors of the will can arrange the tax, administrative duties, and legal aspects involved in the estate’s administration.
You get to choose the executor of your will. The executor should be able to present a grant of probate to assume legal authority to administer your estate. If you don’t secure the grant of probate and assign an executor early, administering your estate can be jeopardized, particularly when there’s a will to execute.
Below are some of the estate protection services that professionals offer:
- Valuing and selling assets
- Making arrangements to reduce family care fees in the future
- Minimizing the amount of estate inheritance tax
- Independent third party for family disputes
- Fast-tracking application for quick release of funds
- Keeping in contact with the will executors
Choosing the Right Retirement Plan
Still unsure? Check out the Retirement Plan to ensure that you have enough to enjoy a better life ahead. With competitive yields and monthly payouts, you could look forward to a post-retirement life where you could live on your terms.
A Pension Plan is a simple, hassle-free plan that helps you accumulate your premiums and investment returns into a corpus for your retirement. The plan offers a host of benefits, such as Vesting Benefits, Guaranteed Additions, Death Benefits, etc. Now is the time to make savvy investment decisions during the working period of your life and put them to work for you for a secure future.
