Time flies. Before you know it, your working years will be over and retirement will be around the corner. Further, changing demographics, and economic constrains require most Indians to plan their retirement well.
Financial wisdom suggests that one should start retirement planning early. However, if you have missed the bus, don’t fret. Here are a few suggestions on how you can still make the most of the time left
Evaluate Financial Ecosystem
Evaluate your current incomes and expenses to determine your current savings capacity. Add other assets and take away loans and liabilities. Study your financial statements or schedule a meeting with a financial planner to ascertain the inflation-adjusted monthly amount required during your retirement years. For e.g.: If your current household expenses are Rs. 50,000 a month, in 10 years with inflation rate of 8% it would be approx. Rs.1,08,000 a month. You can use this retirement calculator to ascertain the affect of inflation on your future expenses.
If you are nearing 50, you probably have around one more decade of active working life ahead. At this stage, you should be extremely careful about your investment choices.
Balance your investments across equity and debt for building a steadily increasing corpus. However, remain debt heavy. Actively managed hybrid investments like Unit Linked Pension Plans are an ideal mode of retirement planning.
Channelize Savings Wisely
If you are in your 50’s, chances are that you are earning a handsome amount and have already paid off mortgages and achieved milestones like your child’s education. Hence, you are likely to have a higher investable amount per month. Direct this money towards your retirement plan.
Invest in a Retirement Plan
Choose a retirement plan like Max Life’s Forever Young Pension Plan. Choose the vesting/retirement age as per your requirement. This plan provides you great maturity benefits depending on the investment option you opt for. You can use these maturity benefits to follow your post-retirement aspirations. Moreover, the insurance cover on your ULIP will leave behind a corpus for your spouse and family, in an event of your death, it sum can help support their financial needs.
Click here to know more about Max Life Forever Young Pension Plan.
Unit Linked Insurance Products (ULIPs) are different from the traditional insurance products and are subject to the risk factors. The premium paid in the Unit Linked Life Insurance Policies is subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Max Life Insurance is only the name of the insurance company and Forever Young Pension Plan(UIN: 104L075V01)is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects or returns.For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. Past performance of the funds does not indicate the future performance of the funds. You may be entitled to certain applicable tax benefits on your premiums and policy benefits. Please note all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. Tax benefits are subject to changes in tax laws.