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How to Make Retirement Planning Successful

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How to Make Retirement Planning Successful
March 11, 2023

Retirement is one of the important milestones of life when a person lets go of the professional and career-oriented duties that have defined her/his economic activities so far in life. The absence of a regular income makes it very essential that a person plans early for this “golden” phase of life. This is because relying on savings corpus is never enough and in order to avoid being dependent on children or other relatives, it is essential that a sufficient coverage is created as and when the time comes for it. When it comes to a successful financial planning, it is very essential that a proper outline must be made and informed decisions must be taken. Following are the basic parameters that highlight the importance of linking insurance with retirement planning so that you can get what you deserve after decades of dedicated service:

  1. The safety of the retirement corpus: Being insured means that you have sufficient coverage of your financial interests as well. This, in effect, means that the funds that you have built and retained for your short term and long term goals stay intact. These funds also include the retirement funds that you may have saved or may be planning to save.
  2. Financial security after retirement: Financial security requires a carefully chosen financial portfolio of which life insurance forms an integral part. If you feel that a pension plan is sufficient to cover up for all the required financial coverage after retirement, you must know that for any successful retirement planning, having a life insurance plan serves as the basic thing. Life insurance coverage allows the policy subscriber to retain sufficient corpus for your dependent spouse and other family members in the event of unfortunate demise of the subscriber.
  3. Taxation: This is an important factor that influences your total gains from investment returns meant for retirement. Since taxes applied before or after retirement can directly impact the corpus you aim to accumulate, understanding their effect is crucial in retirement planning. Life insurance offers tax benefits, with premiums exempt under Section 80C of the Income Tax Act, 1961. This allows you to save on taxes while efficiently planning for your retirement.
  4. A multi-layered investment portfolio for optimum returns: Investment channels that you may have adopted for planning your retirement must be diversified. This usually means having investments in market-linked funds, corporate bonds etc. for higher returns. However, owing to the fluctuations in fund performance with market fluctuations, the ultimate gains come in the category of mild to high risk. A life insurance plan serves as a safe back up in your diversified investment portfolio and you can always rely on the guaranteed benefits provided therein.

HDFC Life offers HDFC Life Click 2 Retire - an online unit linked annuity insurance plan that gives market related gains and helps you achieve your retirement goals. For details, click on the mentioned link: https://www.hdfclife.com/retirement-and-pension-plans/click-2-retire.

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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