How To Identify The Best Retirement Plans In India?

How To Identify The Best Retirement Plans In India?

Retirement can be a daunting landmark in one’s life, where after prolonged employment one has to habituate themselves to a different lifestyle. It is especially a vulnerable time for many, as it deals with a difference in income patterns and their finances. The transition can be made easier in ways that mitigate any possibilities of financial stress on the retiree. Insurance providers therefore, in an effort to incentivize financial planning and stability offer a range of retirement plans that can be utilized by people striving for a relaxed retirement with less monetary obligations and worries.

Retirement plans in India come in various policy iterations as designed to cater to an investment market as diverse as India’s. Retirement plans are investment instruments that can be utilized by potential investors to fixate a certain portion of their income towards their foreseeable future; preferably maturing at the time of their retirement from the workforce.

Retirement plans are considered an essential investment, as after retirement they are no longer on a company’s payroll and their regular income which they use to support their financial obligations may be disrupted.

Hence, in order to support oneself at a time where they are nearing old age and have a shift in their income; they can choose to invest in Retirement plans well in advance so that their future is secured. There are many types of retirement plans in India, as one may choose to invest at different points in their life or choose a different payout method.

Let us read through some of the benefits and features of the best retirement plans in India

  1. Flexible Annuity: Annuity is a feature of retirement plans that allows a prospective investor to acquire a sizeable corpus of money through recurrent premium payments over a determined policy tenure. This annuity benefit can vary from policy to policy, since it has to cater to people of all kinds of retirement needs. The two most common types of annuity that an investor can access is Deferred Annuity or Immediate Annuity. A policyholder can choose from a wide array of options where they can either pay premiums over a period of time, or they can pay a single, one-time premium which can yield them their pension with immediate effect.
  2. Premiums: As aforementioned, one can choose to pay their premiums for their retirement plans as per their discretion. They can choose between paying recurrent premiums; which can be monthly or annual. They can also choose to pay a one-time premium which is a lump-sum amount to validate their pension payments.
  3. Policy Tenure: Retirement plans, often considered one of the best investment options in India have a feature where their policy tenure is over an extended period of time. This allows investors to have an insurance option that guarantees high and steady returns because of their long policy tenures. Hence retirement plans in India have an incentive of starting early, as they allow the investor to have financial security at the time of retirement.
  4. Sum Assured: Retirement plans offer a promised amount to the investor which is insured for the duration of the policy. This amount is called the sum assured. Insurance providers have a vast and customisable array of options for investors to choose from. One’s sum assured is based on the premium amounts they invest in their policy.

Now that the fundamental features of retirement plans in India have been established, let us look at some of the things to consider before deciding on a retirement plan:

  1. Financial Obligations: Since the focal aspect of a retirement plan is to safeguard one’s lifestyle and monetary requirements at a time where they will not have a steady income or salary. Non-negotiable financial obligations such as Loans cannot be missed, which is why one has to invest in retirement plans that provide adequate monetary coverage for all liabilities apart from everyday expenses.
  2. Medical Expenses: Retirement is an uncertain time because of many factors, but one of the most common anxieties investors have is the possibility of missing out on healthcare and medical expenses as old age is a time where they are more likely to fall ill and have recurrent medical expenses. In these circumstances, one should choose a retirement plan that is an optimum solution which can support them during a time when they don’t have a steady salary.
  3. Expenses: Even after retirement, one continues to have household expenses and dependents which require a fixated expenditure. Hence, one should choose retirement plans provide that financial coverage according to their expenses.
  4. Inflation: Retirement plans in India and the guaranteed sum assured they provide is usually tailored to the premiums that are paid by the investor; hence one should consider the aspect of inflation for all expenses and choose a plan that is exponentially adjusted for the costs.
  5. Compare Plans: Before investing, one should compare plans and annuity options offered in the retirement plans in India, and choose the premium costs and assured coverage that is the most suitable to their financial and investment requirement.

In the course of choosing from the retirement plans in India, you can head over to Max Life Insurance and reach out to their financial advisors to help you make the best possible choice towards a relaxed and comfortable retirement.