Retirement is a huge part of our life. We are expected to “move on” from there, move to a stress-free and work-free life. But when is it possible? When we have a great exhibition of successful financial planning in front of us.
This is where a retirement plan comes in. Every employer these days does not offer a pension scheme. Even if it does, it may not be necessarily enough. Hence, having a retirement insurance plan is necessary. It is a crucial aspect of securing a comfortable and financially stable future.
Most people choose retirement or pension plans in India to financially secure themselves and their loved ones during their post-retirement life. In this blog, we will talk about the advantages of having a flexible retirement plan.
Table of Contents
Why Should You Prepare for Retirement?
Many consider post-retirement as a phase where life actually begins! You may have a new set of dreams, want to enjoy your post-retirement life, stay active and healthy and at the same time maintain the standard of living. Here are a few reasons why you should prepare for retirement in advance.
- To stay prepared for a longer life
- To fulfill your financial post-retirement goals
- To stay prepared for emergency medical needs
- To maintain the standard of living
- To ensure your earnings are such that it fights inflation
- To leave a legacy for your loved ones
What is a Flexible Retirement Plan?
A regular retirement plan is when you pay a certain amount of money to the insurance company that will start paying you after your retirement (can be after certain years or immediately) with an added interest. It can be a lump-sum payment or paid in instalments like premiums. Likewise, it can be a lump-sum or instalment payout to the insured.
A flexible retirement plan, however, has the features of a retirement insurance plan as well as a cash accumulation provision, which acts like a savings plan.
4 Advantages of a Flexible Retirement Plan
Flexibility
This plan allows you to customize your policy, contributions, and investment strategies and pick the frequency and structure of retirement fund distribution.
Adaptability
The plan can be adjusted in order to adapt to your economical and financial changes in life. If you experience an increase in income, you can pay a higher premium. Whereas, if you experience a decrease in income, you can cut down on the premium payment. This adaptability ensures that people can negotiate life’s ups and downs while still meeting their retirement aspirations.
Various Benefits
There are various other benefits that you can enjoy with the help of a flexible retirement plan. These benefits include tax deductions and incentives for people to promote more savings. Moreover, a savings plan that provides great interest and increases the overall value of the retirement corpus.
Legacy Planning
In case of the insured individual’s death, the money will be received by the beneficiaries or the nominees of the plan. These names are mentioned in the policy at the time of making the agreement and can be changed over the course of the policy. It is one of the most beneficial features that the plan can provide to the family members.
Conclusion
A flexible retirement plan is beneficial to one and all! It gives you peace of mind, financial support, and stress-free retirement life. It offers a profitable and comprehensive approach towards retirement life. With the evolving financial instruments, flexible retirement plans surely offer more benefits to the insured’s loved ones.
