29 Oct, 2012

How to plan your retirement appropriately?

Retirement is that stage of life where you wish to be free from your responsibilities. If planned well in advance, this is the most comfortable phase of one’s life where you can focus on things you like and wanted to do but couldn’t do due to other engagements. But if you are carrying forward any loans to be paid in this stage or you haven’t saved any money, then retirement is least enjoyable.


If there is no free family sex web cams permanent source of income and health is also dwindling, survival in retirement phase becomes difficult. So, it is always recommended to plan your retirement in-time so that you can escape the difficulties internet dating guide corporacion-oir.org in the later part of life.


Now the question here arises how to plan one’s retirement appropriately? Let’s contemplate a few aspects of retirement planning:


Start early


This is the foremost criteria to be considered for http://interprosmsportal.com/ak/text-dating-free retirement. One should start planning early. Choose the right pension plan that suits your needs and budget. Make sure you channel a small amount from your income and contribute towards the right pension plan. With the principle of compounding, even a small amount will turn into a considerable one.


Consider all expenses

While planning retirement, take all expenses like medical, travelling or other expenses into account. It is very important to make a detailed analysis of all expenses and make a provision for it. Sometimes we ignore some expenses that are being reimbursed presently by the employers but this is not a case once we retire. So, make a detail of these expenses beforehand.


Disciplined approach

Planning a retirement requires discipline on the part of the planner. Despite huge expenses, the planner should continue taking out a small portion of funds for retirement purpose till the time he retires. Though at times you might feel the urge to cater to the present needs as they may seem more pressing, but not at the cost of saving for future. One has to have a disciplined approach throughout to make it a success.


Take inflation into account

Inflation is one thing you can’t ignore while planning retirement. Prices will continue to rise till you retire and even after that. It will affect your standard of living later if you don’t make a provision for it now.


Choose the right plan


Make sure you select the right retirement plan as per your requirements and budget. While choosing the annuity option do consider crucial points like:


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1. Lock-in period

Don’t go for an annuity plan which has flexibility option in it. As plans with liquidity options lures you to withdraw a sum as and when required. And withdrawing money won’t let you accumulate wealth over a period of time. Make sure the pension plan should have a mandatory lock-in clause and the amount you generate should only be available at the time of retirement.


2. Cost factor

It is another crucial aspect that needs to be considered. Cost factor affects budget, performance of the annuity plan and overall return. So, make sure you understand the cost structure and its break-up before investing.


3. Tax Advantage

Every annuity plan offers some tax benefit. One should keep in mind the tax implications before selecting the annuity plan. The other point to be considered is that the accumulated wealth should be tax-free and should be taxable only at the time of receipt. Also, it should offer you freedom to plan the annuity cycle as per the existing tax rates.


The above mentioned points can really help you in planning your retirement. Also, you can take services of financial experts who can offer you great retirement solutions. For more information, browse www.ifmglobal.in and get started.

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