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To take a PENSION plans is perfect method of planning for your retirement. It is very significant that a person save a part of his earnings all through his young years for retirement arrangement. Yes, knowledge about retirement planning is rising nowadays; In India it was not taken very sincerely at one time.
The requirement for annuity is extremely different from that of insurance. Life insurance is normally a preventive gauge to give for one’s family in case of one’s death, whereas retirement planning is about preparing for life after one stop to earn earnings.
Nowadays planning for retirement has become very crucial because the standard of living has risen.
There are two kinds of retirement plans one is traditional and another is unit-linked. Traditional pension plans normally invest in debt instruments and declare yearly benefit in the form of bonus.
The minimum age to take a pension plan is 18 years and at the time of taking policy, the age should not be more than 60-65 years for normal premium options. Mainly pension plans offer a vesting age of somewhere between 40 years and 70 years. The vesting age means the age at which point the pension will start.
You can enjoy tax benefit for savings up to Rupees 1 lakh under Section 80 CCC of Income Tax Act on pension plans.
EVERYONE should plan for a safe financial future in their sunset years. The early you start, the better it is. We must concentrate on three things while retirement planning — safety, return & tax efficiency. Among the a variety of pension plans available in the market today, I have invested in LIC Jeevan Suraksha. This plan ensure attractive and recurring post retirement income also the commuted amount of annuity is tax free and the balance is converted into pension.
The very significant thing is to plainly describe the requirements /wants post retirement and how to support them financially. We therefore need to start building up our nest eggs in consultation with our financial planner .
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