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Ways to plan a stress-free early retirement

January 23, 2021 1812
Retirement: An important aspect of your financial goals

As a responsible and rational individual, you must have started planning for your long-term goals by investing in various financial instruments. But what is the first thing that comes to your mind, when it comes to planning for your long-term financial goals? For some people it could be buying a house, or a car, or planning for life-stage goals, like marriage and higher education. For others it could be having sufficient finances to meet the cost of children's marriage or enough money to take a world tour. But what about the life-stage that comes when everything is done and accounted for? Yes, that phase is when you retire. Retirement planning is an integral part of financial management, and you must take cognizance of this goal as early as possible.

Here is a look at the reasons why retirement planning is a vital aspect of your financial goals:

  1. It helps you maintain the quality of your lifestyle in the post-retirement years:

    The lifestyle that you enjoy today is because of the regular income you receive from your job. The paycheck at the end of every month allow you to live comfortably, while meeting the multiple expenses - like those for essential monthly expenditures and the cost incurred in leisure and entertainment activities - with ease. But will you be able to maintain the same lifestyle when you retire, and don't have access to primary or secondary sources of income? It becomes important for you to make planned investments for building a retirement corpus. While calculating the amount required for your retirement corpus, you must also take into account the increase in cost of living because of rising inflation.
  2. It protects your spouse and dependents:

    Retirement planning becomes even more important when you have financially dependent family-members, like spouse and children. Along with meeting the regular expenses of your financial dependents, a viable retirement plan will also act as a buffer against any unforeseen event faced by them. 
  3. It allows you to fulfill your post-retirement goals:

    You could have considered several goals for the golden years of your life. It could be either professional goals, like reinventing yourself as an entrepreneur, or a personal goal such as relocating to a serene countryside. You could have also thought of pursuing new hobbies and learning new skills. No matter what your post-retirement goals are, they will require considerable finances. If you have made retirement planning a priority, early in life, it will ensure that you will be able to fulfill your post-retirement goals with ease. 
  4. You need not (and cannot) work forever:

    Working professionals easily spend over eight hours, on any given working day, to meet their multiple professional goals. Can you work with the same energy and enthusiasm throughout your life? No, you can't. Also, you need the much-required relaxation after slogging for decades. But you can't afford to relax, if finances are a problem. You can invest in a suitable retirement plan, which can provide sufficient income with the help of money saved while working. Remember, retirement planning through investing in pension/retirement plan allows the allocated part of your savings to accumulate over long-term, and provides a steady income post-retirement. You can also invest in annuity plans, which can act as a secondary source of income after retirement. The annuity plans, like the HDFC Life Pension Guaranteed Plan - a single premium annuity product - will provide a regular guaranteed* income for lifetime. 
  5. It helps you meet medical emergencies:

    You must make retirement planning an integral part of your financial goals as it would protect you from medical emergencies in the post-retirement years. At present, the medical inflation in the country has risen sharply as compared to overall retail inflation. This means a huge medical expenditure, in the case of a sudden medical emergency. But if you have invested in suitable retirement plans, it would act as a financial cushion against unforeseen medical expenses.
  6. Helps you leave a financial legacy for your loved ones:

    What about your loved ones when you are not around? Well, fret not for some retirement plans can also provide a pay-out to your spouse and children, in the case of your sudden demise during the post-retirement years. This will ensure that you leave behind a legacy for your family. 

Conclusion:

See how retirement is an important phase of life, and not a fringe goal to be overlooked. Retirement planning should be an indispensable part of your long-term financial goals, and you should always start planning for the golden years of your life early on in life. This will enable you to do justice to your future. Investing in annuity plans such as HDFC Life Pension Guaranteed Plan can provide you with a wide array of benefits, like option to receive immediate or deferred annuity, option of return of purchase price on death and option to take the plan on single or joint life basis. What's more, you have the freedom to receive the annuities as per your convenience - on a monthly, quarterly, half-yearly or annual basis. 

  • The word "Guaranteed" and "Guarantee" mean that annuity payout is fixed at the inception of the policy

 

ARN: EC/06/2017/9792

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