After leading a hectic life, your retirement is a stage that has to be planned and conceived in a rational and logical way; failing which your life cannot be led on your own terms. In order to live life king-size after retirement, and keep doing things that you are tuned to doing all your life, it is imperative to invest in smart retirement plans, which can be achieved by using innovative savings and investment tools.
Do understand that your retirement period is a time when financial independence becomes a top priority. It is also a stage that sets a backdrop to make new beginnings and indulge in those activities that you could not enjoy earlier due to lack of funds, family obligations, and shortage of time.
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How to Choose a Smart Retirement Plan?
Retirement Plans are designed and conceptualized to offer optimum financial security at a stage when your income is on the decline. However, as life does not stop at retirement and your standard of living remains the same, your chosen retirement plan must be styled to match the varied requirements of your lifestyle. Several factors have to be taken into consideration while initiating the process of choosing the best retirement plans; take a look.
The rate of inflation in India is too high and negatively impacts the lifestyle and purchasing power of an individual. This makes it imperative to keep the escalating rate of inflation in mind when you are planning your retirement life.
It is also essential to start planning and investing in retirement plans at a young age, as, during this stage, an individual has the ability and capability to invest in daring ventures and generate more income and gains.
The age at which you plan to retire also plays a pivotal role in your retirement plan. Therefore, it is well-advised to opt for holistic financial investments that are combined with retirement plans as well.
Some Smart Retirement Plans
Cumulative Deposits, a scheme with reputed banks, is an ideal plan for investors like you looking to save for a stress-free retirement. This is because the interest earned after the stipulated period is on an annual compounding basis, giving more value to your savings.
Public Provident fund and Employee Provident Fund are other viable and revenue-generating options for post-retirement plans.
Some banks and financial institutions offer Participating Plans, which are designed to give you, as an investor, a share in their profits. This effectively means that when a company shows higher profits, the pay-out rates to the investors increases in the form of bonuses and dividends—thereby leading to a lesser stressful post-retirement period.
Investors who have a conservative approach toward retirement plans and savings, and are not inclined to take risks with their hard-earned money, can opt for the plans that return the sum assured at the vesting age.
ULIPs are insurance-linked Unit plans and are designed to attract a single premium from investors. Hence, you have to pay a single premium at the beginning of the plan and enjoy the benefits of the same post-retirement.
Life insurance is also a smart investment as all the premiums paid during the tenure of the policy are accumulated and invested in the securities approved by IRDA the governing and watchdog body for insurance providers in the country.
Role and Importance of a Financial Advisor in Retirement Plans
To enjoy a vibrant and stress-free retirement, it is advisable to appoint a financial advisor (who for a small fee) initiates the process of guiding you with some of the best and smart post-retirement plans; so as to ensure a regular source of income and money.
A knowledgeable advisor evaluates your current financial status by taking into account your source of income, your income projections in the near future, your expenses and obligations towards your family and children, your assets and liabilities, and all other relevant factors. After due evaluation of the same, your financial advisor will update and brief you about all the major retirement plans.
Your financial advisor will ensure and evaluate the current market trends and offer plans that are effective, workable, and easily implemented with all the risk factors duly accounted for to make your post-retirement life hassle-free.