Long Term Investment Guide for Retirement

A retirement plan these days is very essential, as it ensures that there is sufficient financial coverage for you and your dependent spouse after your retirement. After retirement, when there is an acute absence of a regular, monthly paycheck and where there is a dire requirement of a balance financial portfolio, it is very essential that you must have a planned portfolio in place so that due coverage can be had in times of need. After retirement, there is a general escalation in the expenditure and this can have a direct impact on your savings corpus. The savings that you have built up after years of hard work and diligence are actually meant for meeting different life goals and therefore, it is very important that these savings must not be spent on your day-to-day requirements after retirement. Therefore, this emphasizes the extreme importance of having a due retirement plan in place so that sufficient coverage for your golden years can be had.

Following are certain important parameters which can serve as ideal pointers and as a guide for retirement:

1. Start early:

   In order to achieve the required fund corpus by the time you retire, it is essential that you plan early and take a timely decision. You must list out your projected needs and prepare a plan accordingly. While planning, it is essential to consider the factor of inflation as well because this directly impacts the coverage amount required by you and your spouse after retirement. By then time you retire, there must be a credible financial base for you in place, which will enable you to stay financially stress-free for the times ahead.

2. Invest in a pension plan that offers flexible mode of disbursal:

   Disbursal of maturity proceeds is either immediate or deferred. You must choose s per your specific requirements. If you are looking for further investment in a different annuity instrument, then a lump sum payout would be better. However, if you want to cover the day to day requirements through the existing plan, then the option of regular, monthly payouts is more efficient.

3. Sum assured:

   The pension plan that you choose must offer sufficient coverage for your requirements. Being underinsured is something that you must avoid at all costs and for this, it is pertinent that you choose the main plan benefits as per the projected futuristic financial requirements and long-term goals.

4. Additional benefits or riders:

   Pension plan generally offer certain additional benefits for extended coverage benefits. These are additional benefits in the form of coverage points regarding critical illness, accidental disability etc. These benefits, also known as riders enhance the scope of coverage in addition to the main plan benefits. However, purchasing these riders also directly impacts the payable premiums and therefore, these riders must be chosen carefully as per the requirements and never randomly.

HDFC Life offers HDFC Life Pension Guaranteed Plan - a single premium annuity product that offers guaranteed periodic payouts after retirement. For details, click on the mentioned link: https://www.hdfclife.com/retirement-and-pension-plans/pension-guaranteed-plan.