A life spent working hard and saving every penny implies comfortable living post retirement. This is an idealistic assumption if the right retirement investment plan is not made. Today, there are several providers who promise to take care of an individual’s tomorrow. It is not easy however to simply choose a plan. The choice of plan should be influenced by the standard of living desired post retirement, the risk involved and current income, investment capacity. These factors are parameters that determine a retirement or pension plan.
A good retirement plan
Planning for retirement today does not mean one has to wait to retire. There are people who are as young as 20 and plan their retirement! Early planning means more benefit and less burdensome premium. A good investment plan permits early entry, wide payment options and a policy that reflects the needs of tomorrow. There should also be insurance cover, scope for medical cover and additional benefits such as increases during occasions. Since retirement plans are long term plans, there should also be an option to prepone or postpone the vesting age.
ULIP for retirement
Life after retirement need not imply one without investments. Unit linked investments plans give the best of all worlds. Not only do you get to secure your time ahead, you also get to invest. A good ULIP will let you invest wisely based on your risk profile and give you a variety of investment options like pension funds and others. In addition, it should also guarantee help in case of critical illness.
A ULIP retirement plan also has scope to alter vesting age for early retirement. Apart from ensuring a regular income, it guarantees market linked returns. There should also be a provision to alter premium amount to either increase or decrease it. In order to ensure that life post retirement is not one of discomfort, it is essential to plan for it. Your plan should take into consideration the expenditure that need to be incurred for your living based on the cost of living in the future, responsibilities and the desired way of life. One must seek the advice of an expert in order to make a prudent choice.