Skip to main content

Plan for after Retirement years

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

Plan ahead, post-retirement years as it may not be the same as now

THROUGHOUT your working career, you strive hard to achieve your dreams and offer your family all the comforts that life has to offer. But, have you planned on how you will manage your lifestyle post retirement? Retirement planning enables you to continue living life on your own terms and to enjoy a good standard of living even after retirement.

In the Indian context, retirement planning assumes greater significance due to the following reasons:

■ Absence of mandatory provision for pension: A large proportion of India is self-employed or works in the unorganised sector and does not benefit from any state or employer-sponsored post-retirement scheme.

■ Increase in life expectancy: Increasing life expectancy coupled with increasing desire to retire earlier means a longer retirement phase.

■ Rise of the nuclear family system: As per HSBC's 'The Future of Retirement Report India Fact Sheet' published in 2011, high percentages (~32%) of Indians want to live with their children after they retire. This is more than twice the global average.

However, the transition from a joint family system to independent nuclear families, especially in urban India, is a reality, and Indians need to plan for a financially-independent retired life.

■ Increase in cost of living: Rising inflation, growing aspirations for better lifestyles and increasing costs of healthcare make retirement planning indispensable.

When should you start planning for your retirement? In order to maintain a good standard of living post-retirement, you need to plan for retirement earlier.

Let's take an example: Ramesh invests Rs 25 lakh towards his retirement corpus, while Vikram invests Rs 50 lakh for this purpose.

Despite investing less, by the age of 60, Ramesh accumulates Rs 1.08 crore, compared with Vikram's accumulation of Rs 88 lakh. How did this happen? What Ramesh had in his favour was time. He began investing a sum of Rs 1 lakh per annum earlier, at the age of 35 years.

Vikram, to compensate for lost time, saved five times the amount invested by Ramesh, that is Rs 5 lakh every year from the age of 50. This is the power of compounding.


How to plan for retirement? You can build an ideal retirement plan in five simple steps:

 

Step 1: Arrive at how much income you would require to live comfortably post retirement. Remember to take into account aspects like inflation, increased medical costs, vacations and gifts for family.


Also, eliminate costs like children's education and rent, if you own your home.

 

■ Step 2: Establish the amount of corpus you require to generate your desired post-retirement income.

■ Step 3: Determine how much you need to save regularly. Start saving now so that you have time on your side and can enjoy the power of compounding.

■ Step 4: Select the right retirement plan that enables you to meet your post-retirement requirements.

■ Step 5: Systematically invest a fixed amount every month for your retirement.

How to choose the right retirement plan? While you can invest in various instruments for retirement planning, you need to keep in mind that a sound retirement plan should provide returns that can beat inflation in the long term, provide a level of guarantee to safeguard your retirement corpus and ensure that this corpus is accessed only for the purpose of post retirement income.

At present, pension plans offered by life insurance companies and New Pension Scheme (NPS) are two good options for retirement planning. NPS offers a transparent and low charge retirement solution.

Life insurance companies too have revamped their pension plans and now offer a significantly enhanced proposition to customers. These pension plans allow you to build up a corpus and live a comfortable life after you retire from work. They are designed such that customers remain invested for the long term in order to accumulate an adequate corpus for retirement.

Some products allow customers to choose their investment strategy.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
Read more

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...
Read more

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...
Read more

Commercial Paper (CP)

Invest Mutual Funds Online Download Mutual Fund Application Forms Commercial Paper (CP): These are issued by corporate entities in denominations of Rs.2.5mn and usually have a maturity of 90 days. CPs can also be issued for maturity periods of 180 and one year but the most active market is for 90 day CPs.   Two key regulations govern the issuance of CPs-firstly, CPs have to be compulsorily rated by a recognized credit rating agency and only those companies can issue CPs which have a short term rating of at least P1. Secondly, funds raised through CPs do not represent fresh borrowings for the corporate issuer but merely substitute a part of the banking limits available to it. Hence, a company issues CPs almost always to save on interest costs ie it will issue CPs only when the environment is such that CP issuance will be at rates lower than the rate at which it borrows money from its banking consortium. ----------------------...
Read more

Why credit history is critical?

Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now