1. How much is required?
While using the Pension plan calculator, remember to include increased medical cost, vacations and gifts for family. However, reduce the costs like children’s education and rent, if you own your home.
2. Know what suits you.
- Right Plan: choose a plan that can effectively deal with inflation and yield returns that would be sufficient to meet your needs after retirement. Also, the plan you buy should complement your existing retirement savings.
- Pension guarantee: The perfect retirement plan is the one that also takes care ofyour dependents’ needs in your absence.
- Flexibility of Premium payment: The ability to pay higher premium will also increase, as you will advance in your career.
- Additional Benefits: Bonus and benefits. Benefits, such as completion of payment premiums, help in maintaining your future goals even in your absence by self-funding of premiums in case of an untimely death of the policyholder; while the additional benefits, such as loyalty bonus, fetch you a larger amount on your retirement.
3. Know how much you need to save regularly.
How much you can save, depends on how much you are earning today and how much your family expenses are. Reduction in extra expenses, even the smaller once, can provide you and your loved ones, a comfortable life tomorrow.
4. Select the right retirement plan.
Remember, extra benefits come with extra premium. While deciding, do consider these points: Child age (will s/he be mature enough by the time policy expirs), nuclear or joint family, rented or own house, number of dependents, dreams to be fulfilled after retirement (hobbies etc), nature of business or expected increase in future salary etc.
5. Start saving now.
Longer the duration, smaller will be the installments. Enjoy the power of compounding.
6. Systematically invest a fixed amount.
