Everyone has to retire from work at some point in their professional life. Some have the luxury of knowing the day they will retire. The day they will get up to ‘not going to work’ with a lot of free time on their hands. While for some it might happen suddenly with no time left to plan. Pension planning is important for that morning and several mornings which come after that.
Importance Of Pension Planning
Pension planning is the first step to know how much money will be enough for you to have a prosperous life after your primary income source stops.
Once you retire, your life will be different. It will be more peaceful and less hectic.
Once you retire, you retire from your work but not from the responsibilities towards your family. You still have to have money for your child’s marriage, money for your other child’s higher education.
You will also need some money for yourself, your vacations and your hobbies. When you start planning for your post-retirement life, you realize why pension is important. It is essential to go through features and benefits of the vast array of retirement plan options available in the market today, to understand which one suits you the best.
Most of us will have to plan what things we want to do once we start living on a pension.
For some, pensions will come in different forms. Those with public service have a regular flow from the government. To some who have started saving for retirement through annuities or similar retirement plans will get a regular pension.
For all the effort that one puts in through the years of his/her career, making the right investments is essential to get a sizeable sum post-retirement.
There are a lot of things that one needs to consider while selecting a retirement plan such as at what age does one wish to retire, how long does one expect to live, what if one has to retire before the expected date, what problems would one have to face in such a case and their possible solutions, and how starting early can help.
But the question which will arise is: will we be ready for such a big amount to come to us?
Because average life expectancy has increased in India, we believe everyone will enjoy at least a decade or two as a retired person. This proposition makes you start planning in approaching your retirement years and prepare you for taking care of lifestyle expenses and other expenses for such a long time. You could also be met with sudden added expenses in your retirement phase due to unforeseen events that you need to be prepared for. All this should be enough to make us realize why pension is important in today’s times!
Some of the features and benefits of pension planning are:
- Way to independently secure your expenses for your retired life
- Ensure you get to enjoy the lifestyle you desire
- To counter anticipated inflation rate on goods and services
- To take care of medical expenses and emergencies