Why A Retirement Plan?

The expected existence of an average healthy person is around 70 years. This means that you will have to fund your existence for 10 years without a regular salary if you plan to retire at the age of 60. Let us illustrate you how you can really make your retirement years into blond years.

A pension is a secure income given to a person (usually after retirement). Pensions are normally payments made in the form of a definite allowance to a retired or disabled employee. Some retirement plan (or superannuation) designs build up a cash balance (through a selection of mechanisms) that a retiree can draw upon at retirement, rather than promising allowance. These are often also called pensions. In whichever case, a pension formed by an employer for the benefit of an employee is commonly referred to as work-related or employer pension. Labor unions, the government, or other organizations may also fund pensions.

Work-related pensions are a form of deferred repayment, usually beneficial to employee and employer for tax reasons. Many pensions also have an insurance feature, since they often will pay benefits to survivors or disabled beneficiaries, while pension income insures against the risk of long life.

While other retirement insurance (certain lottery payouts, for example, or an annuity) may provide a similar tributary of payments, the common use of the word pension is to describe the payments a person receives upon retirement, usually under pre – fixed legal and/or contractual terms.

Times have surely changed today.Those days have gone when an individual knew that he will retire from his work life at a time he will attain an age of 60 years. Youth and a majority of them thinks and believes to work hard and as much as they can in their youth and attain/accumulate all that wealth they will need to take care of their cash supplies regularly from the time they want to stop working.


When one think of retiring from usual day to day work life, what comes in the mind. Perhaps it is:


One self owned house a no EMI one of course. 
A vehicle and a comfortable one to transport with. 
Cash supplies that takes care of your monthly expenditure. 
kids settled enough and are on their own.


No as such particular liability on you. So, that one has all that time in life for not to worry much about, and to do what one wish to do or had desire to do when he was actually busy out there building wealth. Something which is promoted big time on television commercials by most financial companies and banks in particular. 


Somewhat a stage in life when your risks are all minimized, your liability are all done and you have all that wish and will to take up whatever you desired, and had been postponing for years.


But that is not easy as it has been read. Unless you are a millionaire’s child or a winner of some reality show somewhat that Big Boss kinds. Which makes you an instant millionaire you must start planning for your retirement. According to a statistics which I would like to share from a magazine only a little over 10% of India’s working population has any form of social security. This is because most of them have never ever planned or even thought of planning for their retirement. Try speaking to your parents on this and believe me they would regret on what savings they made in their accumulation phase of life. Infact, they were never left with much to save.


Another most important reason for you to undertake retirement planning is Inflation. Which I have been talking for quite some time now. The word which most of us are aware of and are familiar with but have ignored its important and the harm it can make to your money in the long term.