A person goes through different age and wealth cycles during his lifetime. A young earning person strives hard to maximize wealth and spends for household expenses with other related costs. A relatively older person earns money to increase his savings and accumulated capital. Every person has different objectives in mind for earning however, the one common objective which matters to all individuals is retirement planning. The fundamental principle of retirement planning is straightforward i.e. one has to work to earn and save money. This principle has been adopted and followed for generations, however, each generation has its own set of challenges to be met for successful savings for retirement.
If one has to understand retirement planning, one must keep in mind the different factors governing the planning and decision making. A person has to understand his tentative life expectancy to estimate the money that may be required to support during his lifetime. The higher the life expectancy, the higher yield is required from the investments created for retirement planning. One has to understand that taxable bonds have a yield that does not provide for the rising cost and tax rates therefore investing in fixed interest-earning investments for a period stretching till say age 90 may not be a good idea. Even corporate entities deducting pension and the provident fund from the salaries given to employees are realizing this fact and hence are shifting their contributions to plans which provide variable returns than products that provide a fixed amount after superannuation.
If one has to start planning for their retirement in 2022, he should keep in mind that the rising costs and uncertain times owing to the COVID-19 pandemic are causing a lot of expenditures towards the cost of living and healthcare. People should invest their money in a manner that the less-earning asset is compensated by the higher-earning asset that provides a good package at the end of the earning age for retirement. People should realize the importance of pension plans, which provide guaranteed returns during the life span of the individual.
Pension plan calculators available online can help you estimate the amount of monthly pension that will be required for domestic maintenance and living cost. The details required for this calculation would be the life expectancy, the monthly expenditure value, and the amount of capital available to create the pension corpus. Exide life insurance provides the most reasonable pension plans in the Indian insurance industry. They have pension plans that provide single life as well as joint life pension plans. The inflows of pension can begin immediately or be deferred based on the requirement of the investor. Exide life smart pension plans provide a life cover up to 105% of the single premium paid and include loyalty additions as well that add to your pension amount. The premiums can either be a single pay premium or multiple sets of premium depending on the comfort of the individual and are highly recommended to form part of a retirement corpus given the attractive pension rates provided by Exide Life insurance company.
If you are looking for an online pension plan calculator, head straight to Exide Life insurance company’s website now.