Retirement is an essential life stage for which you must prepare financially by thinking fast forward. Today, inflation and rising healthcare costs have reached an all-time high. Moreover, a statistical report suggests that Indian households’ expenditures on healthcare have been increasing year after year. By 2029, a 48.03% increase is expected.
Given such circumstances and life’s uncertainties, opting for secure retirement plans is of utmost importance. However, to secure the best plan, you must start with a strong foundation. Here’s a quick guide to help you secure your future today.
5 Things to Know When Looking for a Retirement Plan
To find the most suitable, being aware of certain things can help you get the job done hassle-free. Here are 5 things to form the basis of your search:
- The Ultimate Goal of Investing
Be mindful of certain things, such as your current lifestyle, travel plans, hobbies, etc., that you may continue to pursue during your retirement years. This will help determine the amount of savings required.
- How Much Risk Can You Take on?
Know your financial position and factor in market sentiment and other major expenses to determine how comfortably you can invest in a retirement plan.
- Time Horizon
Determine your expected retirement age and the number of years you need to save. This will help you calculate the amount you need to save monthly.
- Investment Options
There are several retirement plans to choose from. You can choose any from investment instruments like mutual funds, stocks, etc., to government schemes. Proceed with the option that matches your long-term financial goals.
- Flexibility and Portability
Choosing the best retirement plan in India does not necessarily mean sticking to one investment. You can explore plans that offer the flexibility to switch funds or portability to another plan as per requirement.
Searching for the Best Retirement Plan in India? Explore the Options
Spending golden years with peace of mind and financial security is a dream pursued by many yet fulfilled by a few. Investing without any research is a major cause here. Therefore, keeping the above things in mind, here are a few options for searching for the best retirement plan in India:
| Feature | Immediate Annuity | Deferred Annuity | With Cover Pension | Without Cover Pension | ULIPs (Unit Linked Insurance Plans) |
| Primary Goal | Guaranteed income stream starting immediately | Guaranteed income stream starting at a future date | Guaranteed income stream with life insurance coverage | Guaranteed income stream without life insurance coverage | Accumulate a lump sum at retirement |
| Investment Option | Limited (usually fixed income) | Limited (usually fixed income) | May include life insurance and investment options | May include life insurance and investment options | Wide range of investment options (equity, debt, balanced) |
| Risk Level | Low | Low | Varies depending on life insurance and investment options | Varies depending on investment options | High (market fluctuations) |
| Liquidity | Generally low, limited withdrawal options | Generally, low payouts start at a deferred date | Varies depending on life insurance and plan features | Varies depending on plan features | Partial withdrawals may be available after a lock-in period |
| Death Benefit | No death benefit | No death benefit | Death benefit paid to the beneficiary | No death benefit | Death benefit paid to the beneficiary (depending on the plan) |
Key Tips to Secure the Best Retirement Plan in India
Every retirement plan that you may come across, whether online or offline, will have different benefits and features. Here are a few key tips that will help you secure the most suitable plan for your golden years:
- Make Reliable Investments
Several plans for retirement may offer appealing benefits but include hidden conditions. For instance, if you’re pursuing a ULIP as your retirement plan, choose an insurance company for the same. It is because ULIP is an insurance investment, and a company in that industry might serve you the best.
- Invest as Early as Possible
One of the most overlooked aspects of retirement investments is not starting with them early. Here, the concept of compounding is on your side, offering enhanced long-term results.
- Be a Savvy Taxpayer
Paying taxes in due time is a responsibility. Well, knowing what you can save on them is, too. If you’ve invested, research its tax benefits. Investments made towards retirement plans attract different tax benefits under the Income Tax Act 1961.
Ready to Retire with Peace of Mind?
Retirement planning requires a careful and analytical approach to ensure peace of mind during the golden years. Plans with cover, such as ULIPs, make retirement even more secure. Knowing that your loved ones are also financially protected ensures a happy retirement.
To explore and pursue insurance investments for your golden years, consider online insurance companies like Canara HSBC Life Insurance. Their plans, like Invest 4G Plan, iSelect Guaranteed Future Plus, etc., are designed for your convenience.
Visit their official website to explore retirement plans today!
ThePrint BrandStand content is a paid-for, sponsored article. Journalists of ThePrint are not involved in reporting or writing it.