Pension Plans

Pension Plans are individual insurance plans that impact your future by providing financial stability during old age. A Pension provides income to live on in retirement. To avoid a paltry income in retirement it is in everybody’s best interest to save more for it. Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. They are suitable not only senior citizens, but for anyone planning for a secure future. Retirement planning is an important aspect of planning your savings. During an individual’s working life it is possible to buy a retirement insurance plan to which a small amount can be contributed on a monthly basis. These investments made early in the life can help in getting a retirement income which enables you to lead your life with the same lifestyle even after retirement. Sky high costs throw even a well-salaried person off balance. With rates rising every day, you can imagine how high they will be when you are about to retire. It is reasonable to start thinking about a good retirement plan that fits your needs.

How do Pension plans work? Pension plan is designed to generate a regular income for individuals once they retire. Insurance companies offer various pension plans (also called as retirement plans or annuity plans) where a person has to initially invest either a lump sum amount or regular annual installments/ premiums over a period of time in return for regular income either for life or for fixed number of years depending, upon the plan. Begin by understanding the pension amount you would require and the premiums you can afford. Accordingly choose the plan and invest accordingly. Why the need for retirement planning?  Earlier during the joint family systems, People used to spend their retired life by spending time with the members of their family and not worry about their livelihood during retired life. But the situation is changing very fast now, there is a need for a modern individual to maintain financial independence post retirement With the average life spans increasing in India, the retirement years are likely to be longer and also Inflation is an important factor. Post retirement, you need a regular income to ensure that your expenses can be met. Helps you lead a life with the same lifestyle post retirement as well.   Most people think about retirement and pension plan when they are 45. In most cases, it may be too little too late. At this stage, committing even large sums of money is of limited help. For instance: If the target amount is Rs.1.5 crore at retirement, the amount to be committed per month (assuming 10% return throughout the period) for someone who wants to invest for 30 years is Rs 7213 per month. For someone who has only 15 years to go, it is Rs 37,348 per month. Pension plans provide financial security to policyholders during their retirement days and so it's important to choose a pension plan carefully. Researching on the various plans available in the market and comparing their costs and benefits is very vital which is why we atIntegrated aim to provide you with all relevant facts and advice so that you can choose the perfect plan for your retirement needs. So, starting early is important for a well-funded retirement. You will be better placed if you start your investment planning early in your financial life and keep investing regularly.

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