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3 Reasons Why You Should Start Retirement Planning Today

RETIREMENT

3 Reasons Why You Should Start Retirement Planning Today

Given the everyday hardships that include dealing with stress, family responsibilities and workplace challenges for the first four or five decades of life, who has the time to even think about, let alone plan for retirement?

For most Indians, fulfilling their children's requirements and building a solid financial foundation take precedence over retirement planning.

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While these priorities hold ground, it's equally necessary to put retirement planning on your goals list. Whether you're in your late 20s, early 30s or even 40s - the clock is ticking and urging you to take the plunge.

This blog highlights three reasons why early retirement planning is the need of the hour.

1. The Economy's Domino Effect

The last two years have been a whirlwind for us. We experienced the global economy taking a significant hit, businesses getting shut, purchasing power declining and inflation taking charge. Given this extreme economic uncertainty, which is usually hard to foresee, such inconsistencies ring a warning bell to start retirement planning today.

Let's unwrap Pinto Shah's situation. Shah, a 60-year retired individual, took minimal retirement planning efforts in his prime years. Now, he has retired at a time when the economy is going through an inflation wave. While he can meet his daily expenses, his poor monetary cushion and purchasing power have forced him to hold back his and his wife's travel dreams.

By signing up for robust pension schemes like HDFC Life Systematic Retirement Plan, he would have had access to a guaranteed income flow during these difficult times.

2. Rising Healthcare Costs

Medical treatments are costly. Whether you are battling a severe illness or a curable condition, especially during retirement, access to professional assistance is heavy on the pocket. And this is bound to swell as you move along through life.

To prepare for such situations, consumers can consider comprehensive plans. For instance, HDFC Life's Systematic Retirement Pension Plan (SRP) is a flexible, non-linked, savings deferred annuity plan that helps consumers get a headstart in planning and saving for their retirement. Here are some advantages:
      ● Policyholders can opt to defer annuity payouts by choosing a deferment period that serves their needs.
      ● By paying premiums for a limited period, policyholders are assured a guaranteed income for life.
      ● Policyholders can opt for monthly, quarterly, half-yearly or yearly annuity payouts.
    ● If the policyholder selects the "Life Annuity with Return of Premiums" option, then the death benefit is payable to the nominee / legal heirs on the death of the annuitant.

Such comprehensive plans provide consumers with a sense of security and mental relief for themselves and their families. Treat it as an investment and not a cost.

3. The Independence of Nuclear Families

Indian families have been actively migrating to nuclear setups for the last decade. This expensive setup necessitates people to shell out more money when compared to the joint family environment. For instance, one incurs a costly payout when buying a home or personal vehicle or childcare costs because of the absence of a close family member to take care of the child.

These expenses call for the need to evaluate the future and invest early in pension plans to enjoy financial freedom in your 60s and beyond.

Lead Your Financial Independence Early on

Retirement planning is an important activity that you shouldn't ignore. When you're in your prime years, you have the best control over your finances and how you want to live your life in the coming years. Therefore, it is time for you to take a step back from your daily hustle and evaluate your goals, dependencies, rising costs, revenue streams and investment performances to build a financial cushion for your sunset years. HDFC Life's Systematic Retirement Pension Plan provides a sizable cushion to support your retirement goals.

You can visit the HDFC Life website to know more about this plan.

 

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