Planning your retirement can be a complex and lengthy process, especially if you have dependents in your family. Most people are often unaware of the financial implications of retirement. Sure they may be your golden years, but life has a way of throwing curveballs at you when you least expect it.
Many senior citizens with dependent family members are often stressed about having to provide for their families. If you’re someone looking to secure your assets and live a worry-free life during your retirement years, good retirement planning is key.
Including Your Family In Your Post-Retirement Financial Planning
Factoring in dependents and family members when planning for your retirement years calls for significant change when handling your finances. This is especially true if you are looking into investing in retirement plans.
Make sure that you invest in a good term plan and a savings plan for for yourself and your family. This will allow you to maintain your current standard of living well into your retirement years.
For instance, the Tata AIA Life Insurance Smart Annuity Plan and the Tata AIA Life Insurance Fortune Guarantee Pension plan available under Tata AIA’s retirement plans are worth considering if you are looking for a comprehensive retirement plan.
Types Of Retirement Plans In India For Post Retirement Financial Planning
When looking for the best retirement plans available in India, be sure to consider the inflation rates as well. This is important so that your funds and savings aren’t heavily impacted in the future.
- Guaranteed Returns Retirement Plans
This type of plan helps you build your retirement income through a guaranteed returns savings plan. When you invest in this type of plan, you would need to make regular payments to the insurer who guarantees a certain return amount on maturity. However, you can avail of the maturity amount only if you outlive the policy term.
This type of plan may be good for you if you are risk-averse and are a conservative investor since the maturity amount is guaranteed to you. Moreover, you can choose the amount of premiums of you pay each month, quarter, or year or even make a single lump sum payment.
- Annuity Plans
An annuity plan is a type of retirement plan where you make regular payments towards the policy. On maturity, you can buy the annuity and start receiving the payments immediately or after a certain period.
Retirement planning will often involve some form of annuity plan to take care of your expenses.
Types Of Annuity Plans:
- Deferred Annuity
This is a save first, income later type of setup. Under this plan, the premiums you pay will count towards your retirement sum over the policy term. You also have the option to pay this amount as a single payment. The amount invested in this plan can only be withdrawn after the policy term is over.
- Immediate Annuity
This type of annuity plan allows you to start receiving the payouts soon after purchasing the annuity. Based on the amount you’ve invested into this plan, you can receive a certain amount each month. In the case of your untimely death, the payout will be given to the policy nominee you’ve cited under this plan.
Retirement plans are a great way to secure your future for both you and your family. The best retirement plans will provide guaranteed income, flexible payment options, a death benefit and additional riders to enhance your coverage.
If you opt for a life insurance retirement plan, you can also be eligible for the tax benefits on the premiums paid as well as the tax exemption on the death benefits under Section 80C and Section 10(10D) of the Income Tax Act, respectively.