Retirement/Pension Plans are savings and investment plans that provide income after retirement.These plans help to build a retirement corpus which is invested on maturity to generate a regular stream of monthly income to cover policyholder’s expenses. Pension plans provide financial security to policyholders during their retirement days to live their life with pride and so it’s important to choose a pension plan carefully.
Pension Plans are individual insurance plans that impact policyholder’s future by providing financial stability during old age. Pension plans are suitable not only senior citizens, but anyone planning for a secure future. With an increasing number of young Indian professionals who are working in the private companies and moving away from traditional joint family structure, parents are required to plan carefully for their retirement years. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today. Life spans have been increasing due to better health and sanitation conditions across the world. However, the average number of years of employment has not been rising commensurately. The result is an increase in the number of post-retirement years.
To lead a secured retired life one needs to plan for his or her retirement from very early in their life. Small investments made early in the life can help in getting a regular retirement income which enables you to lead your life with the same lifestyle even after retirement. Saving in such plans also has tax benefits. The amount of investment in a pension plan shall depend on how much monthly income do you require in our post retirement years.
Pension plans are offering a comprehensive long term financial plan for retirement years. We should have to compare various plans available in the market, in terms of costs and benefits from the data available on companies’ websites to choose the best plan.
Documents required to get a pension plan are as follows:
Age Proof, Identity Proof, Address Proof, Income Proof, Duly Filled Proposal Form
So, take a Pension Plan and secure your future.