Most people, particularly those in the early stages of their career, think retirement is too far away to worry about. Thus, it is fairly common to find retirement taking the backseat when it comes to short-listing one’s financial goals. The reality is that cost of living is on the rise today and with guaranteed employment-linked pensions all but extinct, most of us will need to make our own plans to deal with retirement.
While you may have decades to go before you retire, it’s never too early to start planning and setting aside savings for retirement. There are several ways in which you can build a retirement corpus, and one optimum way to do so is with retirement plans offered by life insurers. These are policies in which you can save and invest towards building your retirement corpus. Moreover, the premiums that you pay towards creating the retirement corpus can also be claimed as tax savings, under the Section 80C of the Income Tax Act. Like other insurance policies, these too offer you features that you can select to suit your financial needs.
One big advantage of saving towards retirement in a disciplined manner over the long run is to gain from the power of compounding. You also have the convenience to pay the premiums in a regular frequency or in one go, through the single premium payment option. There is also flexibility to increase your contributions towards retirement savings such that you can increase your contribution with top-ups as and when you have additional money to contribute.
There is the provision for a life insurance cover provided with the policy, till such time that you contribute or decide to contribute in such policies. This way, not only can you save for your retirement in case of any contingency, your financial dependents can also fall back on the death benefit that is included with these policies. Further, there are options available to put your money into retirement policies with different risk profiles, to suit you risk profile. This way, you can opt for a retirement savings plan with life insurance in a stress-free manner, even as the insurer does the hard work of helping you reach your retirement goal.