Retirement is the ultimate life stage when our bodies may not be able to cope with the rigorous work schedule. Therefore, it is pivotal to plan for this stage of your life in advance. You need to have a corpus set aside to ensure that when you are not able to work for money, your lifetime achievements help pay for your lifestyle.
After years of work, you should not have to struggle in your retirement years. A retirement plan helps keep your finances steady so you can enjoy the fruits of your labour and live life to the fullest. So, let’s discuss a few tips on how to secure yourself in your old age with a viable retirement plan and how ULIPs can help plan for your retirement.
3 Top Tips for post-retirement life
Planning for your retirement is simpler than you think. With the right kind of investment, you can enjoy monthly payments in your golden years and perhaps travel the world or enjoy some much-needed peace and quiet. Here are the top plans that can help you accomplish that goal:
- Guaranteed Pension Goal – As the name suggests, the guaranteed pension goal helps you collect a corpus for your retirement years. You can look at it as an investment plan that ensures that in your old age, you do not need to struggle to keep up with the changing times. You have funds handy in order to invest in things of your choice.
You can use the income from the retirement plan to invest or live off the monthly funds which you are guaranteed to receive.
- Lifelong Goal – A lifetime isn’t enough to experience all the joys that life has to offer. However, a lifetime goal retirement plan ensures that during your career, you set up a substantial retirement fund.
The money that you receive in your retirement years can be treated as your monthly income or as a base amount for more investments. Either way, your money troubles are over in your golden years with this retirement plan.
- Saral Pension Plan – The Saral pension retirement plan is the simplest investment scheme for your old age. It is a basic life insurance plan for which you pay a single premium. This money is not invested in markets and you are basically on a non-participating term plan but the benefits are very useful.
The small sum of money you invest is returned to your nominees in case of death. However, if you survive, you get to cash in on benefits that pay you a monthly income. So, you keep up your influx of money even when you have to retire.
While these simple retirement plans are excellent choices to set yourself up for the future, you can also choose to diversify your investments with more beneficial insurance policies. There are endowment plans that offer money-back during the course of your life, participating term plans that help you earn bonuses, and ULIPs.
These varied types of fund accumulation aid you in maintaining your lifestyle with retirement plans as well.
How ULIPs can help plan for your retirement?
ULIPs are unit-linked insurance plans that not only provide your loved ones with a lumpsum amount of money in cases of unfortunate demise but also help you earn during the course of your life. These market-linked investments help you invest smartly and consistently so your retirement years are more relaxed.
How they work depends on the kind of ULIP you choose. Here are some benefits of how ULIPs can help plan for your retirement:
- ULIPs help set aside a portion of your premiums to invest in the current market. Your money can be invested in debt funds or equity funds. You can even choose to invest in both types of markets to diversify your investments and increase your earning potential.
- You pay your premiums regularly so that if an unfortunate incident leads to death, your family or the nominees you choose will be covered. These timely payments help maintain an investment habit. Therefore, your funds keep growing.
- If you invest in the market, you may lose consistency or you may not always know investing in which funds will get you better results. With ULIPs, you can diversify your investments with calculated risks.
- You get to determine how much money you need to invest in order to maintain your lifestyle in your golden years or for your family to enjoy the benefits of your premium payments. You can use ULIP calculators to ease the process of determining the sum required.
- You can choose how you want to be paid against your investments. Of course, the basic death benefits remain intact with ULIPs, which pay your family a lumpsum amount upon your untimely demise. But that’s not all.
- You can also choose to receive money during the course of your life. ULIPs have lock-in periods, which is a minimum of 5 years. During this time, you cannot earn your bonuses but you consistently invest. When the lock-in period ends, you have already accumulated a sufficient corpus.
When your ULIP matures, you receive a huge sum of money that includes bonuses and interest from your market investments. You can also choose to receive monthly payments from your ULIP investments. These payments are made against your premium; however, some of the funds are still set aside for death benefits. If you survive the tenure of your ULIPs, then you receive the maturity benefit.
- The best part is that your insurance provider can pay the monthly payments you choose to receive during your life or in your retirement years. You can keep investing the funds only when you are working and specify your retirement age and the amount you would like to receive every month. Therefore, in your golden years, your retirement plan is set.
- How ULIPs can help plan for your retirement is you get these monthly payments to cope with your lifestyle without having to make severe compromises.
ULIPs are excellent choices for earning lump-sum cash when your plans mature. Given how your money is invested in death benefits and earning bonuses, you can ensure that your interests will be looked after. Also, your nominees will be well cared for with the death benefit.
Conclusion
Retirement plans are necessary if you do not want to struggle in your golden years. Choosing smart investment options such as ULIPs or endowment plans can help you with a lump sum amount to enjoy your golden years. Similarly, retirement plans also help you keep up a constant influx of money.
