It is vary necessary to think about self old age protection. Think it in very early age because the Bordon of premium less and you also capable to collect a huge amount as carpus.
In our country pension donates that the person must be a government employee. Now the government has changed the pension scheme. The new pension scheme was introduced and implemented w.e.f. 01.01.2004. For complete details on New Pension Scheme please go through my earlier blog //www.arunsbankingcircle.blogspot.com/newpensionscheme(nps)/
So I think the time has come for every one has to think about their post retirement security. Most of our friends who are involve in their own business think that they have no need of pension plan because he has a good business and the business is giving good income and they have not required of pension but my dear friends I want to say that there will be a certain age to work even it may be your business or service. Every body irrespective of profession has to fix his retirement age because the parts of our body is not as young as today and so many other causes which force us to take retirement.
In other words I want to say that retirement plan is as important as mediclaim. As per my view every body has to plan today for their old age security on priority basis. I am going to describe in detail on pention plans for information and make easy to select the right option.
TYPES OF PENSION PLANS?
The categories of pension plans are based payouts according to various criteria:
1. Pension plan with /without life cover
Pension plans with life insurance cover offers an assured life cover. In case of death during the policy term the of Sum Assured has been paid to the nominee or a corpus has been created.
-Pension plans without life cover, The corpus built till the date of death has been paid to the nominees if death of the policyholder during the policy term and there is no life cover in this plans.
2. Immediate Annuity and Deferred Annuity
Most of my friemd must not aware about the meaning of the word Annuity so Annuity is the monthly payouts payable as pension on the carpus collected for pension.
Immediate Annuity plans, the premium amount is paid in one go in lump sum or can say that it os a single premium plan and the annuity/pension starts immediately after paying the premium as per the option for receiving pension payment frequency i.e. (annually, half yearly, quarterly or monthly).
In Deferred Annuity, a policyholder pays a regular premium upto the comtracted number of years. This is called the accumulation period. The money has been accumulated is called carpus and that is used to generate a regular income for life.
To understand better I am taking an example,
if Mohan buys a pension plan with tenure of 30 years then he has to pay his yearly installment upto 30 years. The amount which he accumulates for 30 years is called carpus and his annuity /pension will start at the end of the 30th year. Deferred annuities are like any other investment product that help to build a corpus by investing regular intervals.
3. Traditional pension plans and Unit Linked pension plans
During the accumulation period there is option for policy holder to invest as per his risk in
a traditional pension plan or
a unit-linked pension plan,
The policy holder free to invest based on their risk profile.
In traditional pension plan the company invests most of the funds in Government securities, whereas in a unit-linked retirement plan the investment will be made in a combination of other market linked instructions such as stocks, bonds, securities, etc.
In our country peaple are very reluctant about their own old age planning. There are so many reasons behind it that I will discuss in separate blog.
Mostly in our country people think about old age planning or pension plan when they are in age between 40 to 45 or more. At this stage, investing a large amount of money but amount collected as carpus is not so much large.
So, it is advisable to start in early age and it is very important for a huge and well-funded retirement benefits. As the capacity of a financial planner I want to advice to all my friends to start your investment planning early in your financial life and keep investing regularly.
Any kind of help for a systematic financial planning of yous may contact me over phone 8826125508 or at my email arunkr.licofindia@gmail. Com
Beside this I am giving some tips which always keep in mind while investing in pension plans:
1 First of all decide when you want to start your pension or in other words what would be your retirement age.
2 How much pension you would like to have to live comfortably your retirement years.
3 While computing the monthly pension amount must consider the increasing cost on future medical expenses, cost of comfortable vacations. Inflation and also taken care the constant expenditure of house tax and other municipal taxs.
4 It must be decide according to or on the basis of present income and expenditure of the current lifestyle.
5 Calculate how much you have to save monthly to reach the target you decide for carpus.
6 Do not wait, start from today to reach the target. Saving in early age is always beneficial or fruitful and enjoy the megic of compounding.
7 Select the right retirement plan, which will help you meet your post-retirement requirements.
8 Make arrangements for systematic fixed monthly investment.
It is my suggestion that One must always remember that systematic and early retirement planning can help you reduce their financial burden incurred during the retirement years and help to plan for a carefree and financially secured retirement life.
In our country pension donates that the person must be a government employee. Now the government has changed the pension scheme. The new pension scheme was introduced and implemented w.e.f. 01.01.2004. For complete details on New Pension Scheme please go through my earlier blog //www.arunsbankingcircle.blogspot.com/newpensionscheme(nps)/
So I think the time has come for every one has to think about their post retirement security. Most of our friends who are involve in their own business think that they have no need of pension plan because he has a good business and the business is giving good income and they have not required of pension but my dear friends I want to say that there will be a certain age to work even it may be your business or service. Every body irrespective of profession has to fix his retirement age because the parts of our body is not as young as today and so many other causes which force us to take retirement.
In other words I want to say that retirement plan is as important as mediclaim. As per my view every body has to plan today for their old age security on priority basis. I am going to describe in detail on pention plans for information and make easy to select the right option.
TYPES OF PENSION PLANS?
The categories of pension plans are based payouts according to various criteria:
1. Pension plan with /without life cover
Pension plans with life insurance cover offers an assured life cover. In case of death during the policy term the of Sum Assured has been paid to the nominee or a corpus has been created.
-Pension plans without life cover, The corpus built till the date of death has been paid to the nominees if death of the policyholder during the policy term and there is no life cover in this plans.
2. Immediate Annuity and Deferred Annuity
Most of my friemd must not aware about the meaning of the word Annuity so Annuity is the monthly payouts payable as pension on the carpus collected for pension.
Immediate Annuity plans, the premium amount is paid in one go in lump sum or can say that it os a single premium plan and the annuity/pension starts immediately after paying the premium as per the option for receiving pension payment frequency i.e. (annually, half yearly, quarterly or monthly).
In Deferred Annuity, a policyholder pays a regular premium upto the comtracted number of years. This is called the accumulation period. The money has been accumulated is called carpus and that is used to generate a regular income for life.
To understand better I am taking an example,
if Mohan buys a pension plan with tenure of 30 years then he has to pay his yearly installment upto 30 years. The amount which he accumulates for 30 years is called carpus and his annuity /pension will start at the end of the 30th year. Deferred annuities are like any other investment product that help to build a corpus by investing regular intervals.
3. Traditional pension plans and Unit Linked pension plans
During the accumulation period there is option for policy holder to invest as per his risk in
a traditional pension plan or
a unit-linked pension plan,
The policy holder free to invest based on their risk profile.
In traditional pension plan the company invests most of the funds in Government securities, whereas in a unit-linked retirement plan the investment will be made in a combination of other market linked instructions such as stocks, bonds, securities, etc.
In our country peaple are very reluctant about their own old age planning. There are so many reasons behind it that I will discuss in separate blog.
Mostly in our country people think about old age planning or pension plan when they are in age between 40 to 45 or more. At this stage, investing a large amount of money but amount collected as carpus is not so much large.
So, it is advisable to start in early age and it is very important for a huge and well-funded retirement benefits. As the capacity of a financial planner I want to advice to all my friends to start your investment planning early in your financial life and keep investing regularly.
Any kind of help for a systematic financial planning of yous may contact me over phone 8826125508 or at my email arunkr.licofindia@gmail. Com
Beside this I am giving some tips which always keep in mind while investing in pension plans:
1 First of all decide when you want to start your pension or in other words what would be your retirement age.
2 How much pension you would like to have to live comfortably your retirement years.
3 While computing the monthly pension amount must consider the increasing cost on future medical expenses, cost of comfortable vacations. Inflation and also taken care the constant expenditure of house tax and other municipal taxs.
4 It must be decide according to or on the basis of present income and expenditure of the current lifestyle.
5 Calculate how much you have to save monthly to reach the target you decide for carpus.
6 Do not wait, start from today to reach the target. Saving in early age is always beneficial or fruitful and enjoy the megic of compounding.
7 Select the right retirement plan, which will help you meet your post-retirement requirements.
8 Make arrangements for systematic fixed monthly investment.
It is my suggestion that One must always remember that systematic and early retirement planning can help you reduce their financial burden incurred during the retirement years and help to plan for a carefree and financially secured retirement life.
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