A person works his entire life with full dedication and efficiency moving forward towards a peaceful life. But how can one attain such peace and joy after the completion of his work life? Have you ever wondered? The answer to this question will be a peaceful retirement which is obtained by proper retirement plans. Where from a person receive such financial advice helping him undertake an excellent retirement plan? Due to lack of knowledge and awareness an employee serving all his life towards work commitment fails to opt for a good retirement plan. But now this problem can be resolved as MoneyMindz, First Free Online Financial Advisors comes up with a magnificent idea of India’s First Interactive Financial Advisor, Kuber Mindz. This financial advisor, Kuber Mindz actively, clears all your financial queries and helps you make the right choice. You being at your comfort just at your fingertips will be able to communicate with this Friendly Financial Advisor, Kuber Mindz and plan the finest retirement plan.
There are plenty of reasons to start Retirement Planning at the earliest. Two of the reasons can be India’s not so favourable environment for senior citizens and also its persistently high inflation. Therefore, it is highly, mandatory to plan for your retirement before it gets too late for a better tomorrow. The main purpose of retirement planning is to achieve financial independence. It will encourage the saving practices and let you maintain the desired lifestyle.
Retirement planning can be termed as the process of ascertaining retirement goals and the outcomes and steps required to achieve those goals. Identifying sources of income, estimating expenses, implementing a savings program and managing assets consist of the retirement planning. Investing in a specific amount regularly to acquire over a certain ownership in a phase-by-phase manner. A proper retirement ensures a steady flow of monthly pension once a person retires. Beginning an early contribution towards your retirement can let you enjoy a lavishing life with your loved ones.
Who shall opt for a Pension Plan?
A person, who certainly, wants to secure his retired life financially, can start investing in pension funds. On a legal note, under section 80C allows a number of retirement plans for tax deduction up to Rs. 1.5 lakhs. The fund which you choose must align with your investment goals. For example, if you want to retire early, your corpus upon maturity shall be enough to support the additional years. So, your responsibility will be to scheme smartly.
How can you be benefited by pension plans?
1. Guaranteed Pension/Income: A fixed and steady income can be earned after retiring and also immediately after investing based on investment manner. It will ensure a financially independent life. The best way will be to use a retirement calculator for a rough estimate of how much money one can require monthly after retirement.
2. Tax-efficiency: Under Section 80C, pension plans are entitled to tax exemption. If a person wants to contribute to pension plans, the Indian Income Tax Act, 1961, offers significant tax respite under Chapter VI-A. Also Section 80C, 80CCC and 80CCD specify in detail.
3. Liquidity: A retirement plan is certainly, a product of low liquidity. But some companies offer pension funds that let one withdraw even during the accumulation period. So, one has funds to fall back on during an emergency without having to depend on bank loans or borrow from other people.
4. Surrender value: Surrendering a person’s pension plan before maturity is not a smart move even after paying the required minimum premium. This will result in the investor losing every benefit of the plan also including the assured sum and life insurance cover.
5. Vesting Age: The age when one begins to receive the monthly pension can be regarded as vesting age. For instance, most pension plans keep their minimum vesting 40 or 50. It is also flexible up to the age of 70. Although some companies do allow the vesting age up to 90.
Remember these tips before purchasing a pension plan:
1. A rough estimate of your future financial goals shall be made.
2. Considering your current income, fix an amount to be put towards the plan.
3. Make a research of the available plans read the benefits offered postmaturity and do choose accordingly.
4. Understanding the product before moving towards the cheapest option is a must.
5. You should not choose a product only because of tax-friendliness.
Retirement plans can be categorized as one of the life insurance plans that are designed to meet post-retirement needs such as medical and living expenses. It ensures you to enjoy your golden years becoming financially independent in securing your future. Kuber Mindz, Latest Financial Advisor can be a helping hand in gifting you a peaceful retirement out of tensions and worries. Don’t miss this golden opportunity to educate yourself with the best financial knowledge turning you into a bold decision maker.