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Together at Every Stage. Even When it Comes to Retirement Planning!

  6/5/23 7:05 AM

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Rajesh and Smita are married since the past 3 years. They have planned not just their home interiors and vacations but also their finances together. Smita noticed that they had planned for everything except their retirement. She thought it was simple but only when she confronted Rajesh she realized that their spending patterns, objectives and retirement needs are fairly different.

Smita then made a list of all their objectives and needs. One thing she considered increasing opting for immediately is health insurance. She was aware of the fact that by the age of retirement there is a high chance of suffering from diseases like diabetes and blood pressure which can also lead to critical illnesses like heart disease or chronic kidney disorder.

Then while calculating the retirement corpus, she considered Rajesh’s dream vacations and her passion. She then factored in the rate of inflation and the lump sum expenditure that would be required post-retirement. Smita and Rajesh mutually decided that they would jointly tuck an extra Rs 10,000 per month in investing in Unit Linked Insurance Plans as soon as possible, this will provide them with an additional Rs 65 Lacs by the time they turn 60, assuming the money grows at 12% (factoring inflation at 6%) per year.

This amount would be sufficient enough for Rajesh’s Europe tour and her passion for setting up a small business.

She settled with ULIPs as it would be perfect for long-term investment planning. One can reap the benefits of the market with the flexibility feature of switching between debt, balanced and equity funds. Also, the fact that ULIP provides the triple benefit of good returns, life cover and tax benefit was enough to induce her.

Smita considered retirement as a different investment approach altogether. She didn’t like the idea of exhausting their present savings in order to complete their retirement goals. This is indeed a smart financial decision because life expectancy has increased in the past decade and with the increasingly stressful jobs, everyone aims for an early retirement. This is only possible if one considers as a completely different approach without hampering their existing savings that can be utilized for other immediate goals.

Smita and Rajesh have planned for their retirement wisely. What about you?

Just like every other goal, retirement is also a promise to live peacefully without any worries. The earlier you plan the better your returns.

Be prepared so that you are not sorry later in life!


Neha Panchal - Financial Content Writer

Neha used to be an Engineer by Profession and Writer by passion, which is until she started pursuing full-time writing. She's presently working as a Financial Content Writer, with a keen interest in all things related to the Insurance Sector.

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