Retirement Plans
Retirement Plans are a category of life/annuity plans that are specially designed to meet your post-retirement needs such as medical and living expenses. You would want to maintain the same lifestyle post retirement. There could be an increase in your day-to-day expenses due to an increase in inflation. You would also have post-retirement dreams such as travelling the world, pursuing a hobby, starting a new venture, and more. By planning in advance, you can be financially prepared for your retirement.
This is where pension plans/retirement plans come in. Both pension plans and retirement plans are a category of life insurance plans that are specially designed to meet your post-retirement needs. To ensure that you can enjoy your golden years with financial independence, these plans help cover your expenses and secure your future.
Benefits of Retirement Plans
Investment, being one of the most significant aspects of the financial planning, intends to ensure that the money you earn is put to productive use. It is profitable and a good way to gain extra cash. By making investments in several financial products you can grow financially. The reason for this can be explained with an example. Suppose you have Rs. 1000 and this value of money will decrease 5 years down the line as opposed to its value in the present day.
Apart from this, there are several benefits of investments. They are:
- If you make investments, you will harvest returns out of it that will help you with emergency expenses like any medical expenditure, accidents etc.
- Making investments in different financial avenues makes sure that the money you have invested grows rather languishing in bank accounts.