Retirement Planning: How insurance can contribute to building a strong retirement fund
The retirement phase of our life is a milestone where we say goodbye to the traditional work routine and start a new chapter. This is a wonderful phase where we work towards realizing many of our dreams and aspirations which may have been put on hold during the working life. Whether it's traveling, volunteering, learning a new skill, pursuing a long-cherished hobby, or spending time with friends and family, retirement provides an opportunity to create a fulfilling life outside of the regular work life.
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| Source : Google.com/Retirement Savings |
Some reasons why retirement planning is so important today:
An enriching retirement life
Retirement is not considered a boring phase of life and there is nothing exciting to look forward to. People live the second half of life with renewed vigor and view it as an opportunity to pursue their passions and achieve many unfulfilled dreams.
Responsible for medical bills
Health expenses cannot be denied and this is one area that should be a major focus, especially at the retirement stage. Apart from that, the inflation factor cannot be ignored.
Source of income for life
With a comprehensive financial retirement plan, it is easy to overcome the worries of exhausting the corpus that may have been built up over the working years.
Become financially independent
With the availability of pension funds, the vulnerability factor will be eroded and there will no longer be financial dependence, whether on children, family members or friends.
Increased life expectancy
A study conducted by a leading media channel shows that there has been a 100% increase in life expectancy in India since 1947. This, along with the breakdown of the traditional family structure, requires people to plan their retirement well in advance.
Early retirement options
Many people may not have the enthusiasm to work until the age of 60. The FIRE Phenomenon – Financial Independence, Early Retirement, is increasingly popular among the millennial generation and Gen Z. If retirement planning is done at an early age, this will create the perfect opportunity to start your own business. A survey conducted last year showed that 67% of Indians were considering early retirement, and some were considering early retirement at the age of 33.
Overcoming adverse life circumstances
Emergency situations can occur for no reason. The pension fund will ensure the situation can be resolved quickly and definitively.
Retirement planning is an undeniable aspect of life and to make it financially viable, a life insurance policy plays a very important role. A common belief is that life insurance offers financial protection for immediate family members, should the policyholder die prematurely. While this is true, a life insurance policy can also be a great financial tool to build an excellent retirement corpus. This low-risk fund option is great for lowering taxes and is therefore suitable for goal-based savings, such as retirement.
Here's how life insurance can help build retirement funds:
Fixed income in retirement:
This plan is suitable for everyone, regardless of income group, as it converts savings in the form of premiums into regular income for life. Additionally, most retirement plans offer bonuses as well as loyalty top-ups to increase the retirement pool.
Low risk:
Retirement is different from working life. Risk appetite decreases and people tend to look for safer bets, and this remains true even in achieving their financial goals. With a carefully built savings pool, it's important to use those funds wisely to cover expenses, without losing money due to market volatility.
Overcoming adverse life circumstances
Emergency situations can occur for no reason. The pension fund will ensure the situation can be resolved quickly and definitively.
Retirement planning is an undeniable aspect of life and to make it financially viable, a life insurance policy plays a very important role. A common belief is that life insurance offers financial protection for immediate family members, should the policyholder die prematurely. While this is true, a life insurance policy can also be a great financial tool to build an excellent retirement corpus. This low-risk fund option is great for lowering taxes and is therefore suitable for goal-based savings, such as retirement.
Here's how life insurance can help build retirement funds:
Fixed income in retirement:
This plan is suitable for everyone, regardless of income group, as it converts savings in the form of premiums into regular income for life. Additionally, most retirement plans offer bonuses as well as loyalty top-ups to increase the retirement pool.
Low risk:
Retirement is different from working life. Risk appetite decreases and people tend to look for safer bets, and this remains true even in achieving their financial goals. With a carefully built savings pool, it's important to use those funds wisely to cover expenses, without losing money due to market volatility.
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