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The best time to plan your retirement: Now


Do not put off retirement planning for later. It is better to plan for your retirement when you are young.

For many people, the word 'retirement' seems like a far-off mirage. There are several goals to accomplish before one retires, and it is not a priority for people in their 20s and 30s. It is when a person can actually see retirement around the corner that one starts thinking about it seriously.

In recent years, inflation and living costs have shot up exponentially in India. Where Rs 15,000 could easily help run a family of four, today even Rs 30,000 is insufficient. People's incomes are just not able to keep up with their expenses. Hence, they are not able to save much money because emergent expenses take away a bulk of their income. In this situation, one defers thinking about retirement planning for later.

This is a wrong approach to retirement planning.It is estimated that one must have at least 100 times as much as the last drawn salary in the bank when one retires. This corpus can ensure that one retires comfortably, is able to pay for medical and daily expenses and also spend on such things as hobbies and travel when needed without borrowing money. This sum also considers future inflation, which automatically pushes up monthly expenses. Hence, if one spends Rs 50,000 per month today, he may require Rs 2, 00,000 per month in the future.

Are you reasonably satisfied that your savings and current spending patterns will help you when you eventually retire? Will you reconcile yourself to the fact of being perpetually cared for by your children or other relatives? Or should you take steps to ensure that your financial destiny is in your hands even when your income stops? If you wish to have a comfortable retirement without liabilities and dependence on others, it is time to plan your retirement with a good pension plan.

A pension plan offers adequate financial security by providing regular income after one retires. Under this plan, the policy holder pays premiums for a certain number of years and then earns an income from the corpus generated on maturity of the plan. The plan matures when the person retires, and one need not wait till age 60 to do so. Having a pension plan under one's belt gives peace of mind about the future, and also helps a person allocate funds correctly for other expense heads such as children's education and medical expenses for the future.

When looking for the best pension plan in India, do study the Aditya Birla Sun Life Insurance (ABSLI) array of pension plans. These include plans for life protection and savings, as also unit linked returns. Consider these:

ABSLI Empower Pension Plan:
TThis is a unit-linked pension plan that helps you grow your savings and get robust returns for retirement.
 
ABSLI Immediate Annuity Plan:
Instead of parking your savings in the bank, you can earn guaranteed income during your retirement with this plan.
 
ABSLI Empower Pension – SP Plan:
This is a single pay pension plan in which your investment is converted into good returns for the future.