30-Year Retirement Pension Plan

 

In this policy, the investment risks in the investment portfolio is borne by the policyholder

Most young professionals today understand the importance of planning for retirement from a young age. Creating a sound financial plan in your early 30s allows you to fulfil your retirement goals and maintain your standard of living in your golden years. Let’s see how a 30-year retirement plan works for you.

What is a 30-Year Retirement Plan?

A 30-year plan builds a corpus for your retirement over three decades. Depending on your risk appetite and required corpus, you can choose a retirement plan that works for you. When you’re young, you can opt for a Unit-Linked Insurance Plan (ULIP) like HDFC Life Click 2 Retire. You pay regular premiums that get invested in various funds of your choice. These funds earn returns based on market fluctuations. You can select funds that work for your goals and risk appetite. At the end of 30 years, you have a significant corpus to help with your retirement goals. These policies also provide life insurance coverage, safeguarding your family’s financial future.

How Does a 30-Year Retirement Plan Work?

We can understand how the plan works using an example. Deepak is a 30-year-old only child taking care of his senior parents. To protect his future and safeguard his parent’s finances, he plans for retirement with the HDFC Life Click 2 Retire policy. Deepak selects a 30-year tenure to retire at 60. The policy offers life insurance coverage, and he chooses his mother as the beneficiary. Should anything happen to him during the policy term, his mother receives a payout that helps her with her financial obligations. Deepak pays regular premiums and chooses a mix of debt and equity fund investments to balance his risk. When the plan matures, he uses a portion of the accumulated amount to purchase an annuity that ensures guaranteed income for life. He utilises the rest of the corpus to meet various expenses.

Why Choose a 30-Year Retirement Plan?

Here are some reasons why you should consider a 30-year plan. 

To Build Financial Discipline

A 30-year plan encourages you to build financial discipline. You make regular investments, ensuring you save and put money away for a financially secure future. A 30-year plan enables you to fulfil your long-term financial goals.

For Guaranteed Returns

Choosing a 30-year retirement plan provides guaranteed benefits, safeguarding your finances in your golden years. The insurance coverage provides additional security, ensuring your loved ones maintain their financial stability regardless of what happens to you.

For Flexible Investment Options

The HDFC Click 2 Retire plan lets you decide how to invest and grow your money. You can choose fund options based on your risk appetite and financial goals. The policy also offers guaranteed vesting benefits on maturity, limiting risk exposure.

Tax Benefits

The HDFC Life Click 2 Retire plan provides tax benefits^* per prevailing tax laws.

Things to Consider Before Selecting a 30-Year Retirement Plan

Here’s what you should consider before selecting a 30-year retirement plan.

Your Goals

Ask yourself when you want to retire and what you hope to achieve in your golden years. Once you determine your retirement age and goals, you can select a plan that aligns with your needs.

Financial Situation

Before planning for the future, understand your current finances. Assess your assets, income sources, existing investments and liabilities. Then think about how much you still need to secure a comfortable retirement. Identify a plan to help bridge the gap.

Your Risk Appetite

Insurance companies offer multiple retirement plans. Some policies allow you to invest in market-linked returns, while others use compounding interest to grow wealth. Understand the level of risk you are comfortable with. Select plans that suit your risk appetite while building the required corpus.

Consider the Impact of Inflation

Inflation could impact how much your corpus will be worth in the future. Identify plans that beat the inflation rate to secure your financial future. Remember, the accumulated amount should help you maintain your lifestyle and standard of living.

The Insurance Coverage

Retirement plans offer life insurance coverage to safeguard your family’s financial future. Evaluate your Human Life Value (HLV) and choose options that provide a sufficient sum assured.

Choosing the right retirement plan for your needs requires careful thought. First, consider your goals and dreams. Then, identify 30-year retirement options that enable you to fulfil them. A 30-year retirement plan offers sufficient time to build a corpus to meet your future aspirations.

Related Articles

• 5 Mistakes To Avoid After Your Retirement
• Enjoy Financial Security with a 25-Year Retirement Plan
• Income Tax on Pensions: Are They Taxable?
• Features and Benefits of HDFC Life Systematic Retirement Plan
• Vesting age for retirement plans: Meaning and benefits
• Features and Benefits of HDFC Life New Immediate Annuity Plan
• 5 Tips To Make The Most Out Of Your Retirement