Given the day-to-day struggles of coping with stress, family responsibilities, and workplace challenges during the first four or five decades of life, who has time to think, let alone plan, for retirement?
For most Indians, meeting their children’s needs and building a strong financial foundation takes precedence over planning for retirement.
While these priorities are valid, it’s also necessary to put retirement planning on your list of goals. Whether you’re in your late 20s, early 30s, or even in your 40s, time is running out and pushing you to take the leap.
This blog highlights three reasons why early retirement planning is the need of the hour.
1. The domino effect of the economy
The past two years have been a whirlwind for us. We have seen the global economy take a hit, with business closures, declining purchasing power and inflation picking up. Given this extreme economic uncertainty, which is usually difficult to predict, such inconsistencies sound like a warning to start planning for retirement today.
Let’s find out the situation of Pinto Shah. Shah, a 60-year-old retiree, made minimal effort to plan for retirement during his early years. Now he has retired at a time when the economy is going through a wave of inflation. While he can meet his daily expenses, his low monetary cushion and purchasing power have forced him to hold back on his and his wife’s travel dreams.
By subscribing to solid retirement plans such as HDFC Life Systematic Retirement Planhe would have had access to a guaranteed income stream in these difficult times.
2. Rising health care costs
Medical treatments are expensive. Whether you’re battling a serious illness or a curable illness, especially during retirement, access to professional assistance is heavy on the pocket. And that can only increase as you go through life.
To prepare for such situations, consumers can consider comprehensive plans. For example, HDFC Life Systematic Retirement Plan (PRS) is a flexible, untied savings deferred annuity plan that helps consumers get a head start in planning and saving for their retirement. Here are some benefits:
- ● Policyholders can choose to defer annuity payments by choosing a deferral period that meets their needs.
- ● By paying premiums for a limited period, policyholders are guaranteed guaranteed income for life.
- ● Policyholders can opt for monthly, quarterly, half-yearly or annual payments.
- ● If the policyholder chooses the “Life annuity with refund of premiums” option, then the death benefit is payable to the legal representative/heirs on the death of the annuitant.
These comprehensive plans provide consumers with a sense of security and mental relief for themselves and their families. Think of it as an investment, not a cost.
3. The independence of nuclear families
Indian families have been actively migrating to nuclear facilities for a decade. This expensive setup requires people to shell out more money compared to the common home environment. For example, one incurs a costly payment when buying a home or personal vehicle or childcare costs due to the absence of a close family member to care for. the child.
These expenses require assessing the future and investing in retirement plans early to enjoy financial freedom in your 60s and beyond.
Lead your financial independence from the start
Planning for retirement is an important activity that you should not ignore. When you’re in your prime, you have the best control over your finances and how you want to live your life in the years to come. Therefore, it is time for you to take a step back from your daily hustle and assess your goals, dependencies, rising costs, income streams and investment performance to build a financial cushion for your later years. HDFC Life’s Systematic Retirement Plan provides a significant cushion to support your retirement goals.
You can visit the HDFC Life website to learn more about this plan.