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

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
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