What is Retirement Planning?
Retirement is a time when your regular income stops and you totally depend upon your savings. According to PTIC INDIA (Retirement Planner in Delhi), Retirement planning means saving sufficient funds for your future finances needs. A good Retirement Plan can secure your post-retirement life financially. In Retirement Planning you have to decide what is the right time to start saving and invest your money for the future. Every individual has different retirement needs. To work this out, you have to think about how much time you have in retirement and what sort of life you are expecting to live.
When you getting close to your retirement, it is a good time to look out the daily expenses or monthly budget of your household. Your budget will determine the amount of money you can contribute to saving for the retirement plan. According to a study in financial planning, you should invest 10 percent of your income in your 20s, 15 percent in your 30s and 20 percent in your 40s for a healthy retirement.
Types of Retirement Plan:
Process of Retirement Planning:
Several benefits that come under Retirement Planning:
- Regular income for life – By investing in retirement plans, one can get a month to month salary after retirement till death.
- Tax Benefits – It gives tax reductions to the individual speculators. An investment amount of up to INR 150000 per annum is eligible for tax exemption under Section 80C of Income Tax Act.
- Security for Spouse – if there should be an occurrence of death of the investor, the spouse will be entitled to get the invested amount along with the accumulated interest amount.
- Security for children – In case of occurrence of death of the investor and life partner,
the investor’s children will be entitled to get the invested amount along with the accumulated interest amount.
- Protection against inflation – Rate of inflation keeps on increasing every year, and it will be difficult to meet both the ends post-retirement as there is no regular income from salary. To resolve the issue monthly income from pension schemes comes in handy during old age.