You might go at your own pace in life. At a young age, you would be celebrating your first salary. As you grow older, you might be bidding farewell to your colleagues for retirement.
The thought of retirement might bring a sense of relief to every working individual. As a professional, you would take retirement at a given point in your life. During your retirement, you might either prefer sitting back at home peacefully or explore new cities with your partner every year. According to a survey, more than 40% of people in India have fitness and health goals, while one in three prefer to travel to exotic destinations.
Retirement marks the beginning of living life on your own terms. To ensure a smooth retirement in the future, retirement planning plays a major role. You should not only save your hard-earned money but also invest in a pension plan for your financial independence in the future. A good pension plan will provide you with adequate funds when the flow of professional income stops after retirement.
There are plans available in the market that offer retirement benefits in the long run. Let’s take a look below to know the top four long-term retirement plans to help you accomplish your life goals with ease:
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Unit Linked Insurance Plans (ULIPs) for Retirement
ULIPs are a dual-benefit financial product. It is an amalgamation of investment and insurance under a single integrated plan. It not only offers life coverage in times of emergencies but also invests your capital in the stock markets. With a ULIP plan, you can cover yourself and your spouse against any contingency. Moreover, your spouse can receive a death benefit in your absence to maintain the current lifestyle, even after retirement.
A ULIP plan offers a lock-in period of five years. When you invest your money every month in a ULIP policy, the chances of the growth of funds is high. The accumulated funds over the due course can allow you to accomplish your post-retirement goals. In simple terms, the longer you stay invested, the higher is the growth of funds.
Life Insurance Investment Plans for Retirement
During retirement, you might have the financial responsibility of your adult children or kids with special needs. As a parent, you might want to either send them for higher studies or you might want to plan a dream wedding for them. In such scenarios, life insurance investment plans prove beneficial. A life insurance investment plan insures your lives as well as saves money for your future.
There are several life insurance investment plans like Public Provident Fund (PPF), Fixed Deposit (FD), Equity Linked Savings Scheme (ELSS), and so on. These plans allow you to accumulate cash for unforeseen events like death in the family, medical emergencies, etc.
Guaranteed Return Plans for Retirement
During retirement, your financial security is of utmost importance. Since your income might stop, you would require more funds to sustain in the long run. By investing in guaranteed return plans, you can receive life coverage with guaranteed payouts at regular intervals.
With these payouts, you can not only fulfill your routine household and medical expenses but also accumulate resources for accomplishing your aspirations. In the case of urgency, you can opt for a monthly payout to meet your immediate needs.
Endowment Plans for Retirement
An endowment policy is a type of traditional life insurance policy. It is a combination of savings and insurance. Under an endowment plan, you are eligible to receive minimal returns, which are guaranteed.
Whether you are young or you are approaching your retirement, you can start by investing a specific proportion of your income regularly in an endowment plan. On maturity, you can obtain a lump-sum amount. In case of your death, your beneficiaries would receive a death benefit with any applicable bonuses, if any.
In a nutshell, it is always best to plan for your retirement in advance. As an investor, you can start by investing in these four long-term retirement polices at an earlier phase of your life. When you are young, you might have fewer financial responsibilities towards your dependants. Moreover, if you start at a young age, you can generate a substantial retirement corpus for the accomplishment of your life goals.
