When you think of retirement, what images does your mind conjure up? Is it sipping wine late into the night with your better half, unwinding in a sprawling farmhouse, travelling the world without a pause or something equally exciting and fulfilling? Well, not to burst the bubble, but all this doesn’t come easily and requires years of savings and financial planning.
To prepare for the next phase of life and retire on your terms and spend the golden years without any compromise means that you have to get started today, if you haven’t already. To begin with, set a realistic retirement goal, estimating the corpus of funds you will need to lead a comfortable life, and then keep a certain sum aside regularly to grow your savings.
Every retirement plan is unique and for this, you can invest in a reliable plan such as the HDFC Life Systematic Retirement Plan, which offers guaranteed income, benefits of higher annuity and the option to choose your payout frequency, credited directly into your bank account. You can also use the quick and simple HDFC Life calculator to gauge how much you need to save for retirement.
The plan allows you to save systematically with the flexibility to choose the premium payment term, deferment period and the annuity payout date. Here are some key features of the HDFC Life Systematic Retirement Plan:
- Guaranteed income for life by paying premium(s) for a limited term.
- Option to receive annuity monthly, quarterly, half-yearly or yearly
- Option of return of total premiums paid on death.
- Guaranteed annuity rate fixed at policy inception, which shall remain the same for the duration of the policy.
Your retirement life may be a long and productive one and to meet its challenges, you should start saving during the working years. While pension plans in India come with tax benefits up to a certain limit, this should not define our investment in a retirement plan. To live your golden years free of tensions, choose your plan wisely, and start as early as possible, even if you have just started climbing the corporate ladder. Your 20s may seem too early to look ahead to the sunset years even as expenses seem to be more than earnings. However, putting aside even a small sum regularly leads to a huge corpus ultimately, given the magic of compound interest that multiplies your investment over the decades. Given the rising rate of inflation, the power of compounding cannot be underestimated. As the HDFC Life Systematic Retirement Plan tagline proclaims, plan systematically for your retirement today and live worry-free tomorrow.
In later years, as one enters their 30s and 40s, children’s education or marriage may take centrestage, besides credit card debt, home loans, etc, pushing retirement plans to the background. Again, it is recommended to continue your investments, however small, to grow your retirement corpus, with the help of a plan, such as the HDFC Life Systematic Retirement Plan. While you wait to have more money to invest at some point in the future, it will be difficult to make up for lost time.
One can invest at all stages of life, well into their 50s and 60s, when savings become less aggressive. The advantage during this period is that one’s bigger expenses have been dealt with, such as home loans or children’s education, leaving more disposable income to invest.
So, it’s time to start visualising the retired life you would like to lead, whether it is the kind of house you wish to live in, buying a vacation home, when you want to stop working actively, etc. It is time to start investing right, so that you can make that dream a reality. HDFC Life Systematic Retirement Plan can be your trusted companion on this journey into the next phase of life.