Retirement Plans

What is Retirement Plan ?
In today’s life, very few things come with guarantees. Life can be uncertain but your financial planning need not be. The rising inflation has put the fear of the unseen in every working person’s life. Today, more than ever, it is vital that you save for the golden years post retirement so that you can maintain your lifestyle as today. Retirement Plans comes with a unique Lifestyle fund which systematically reduces the risk to your returns by reducing the equity exposure of your investments progressively throughout the policy term. Pension plans offered by life insurance companies provide you with a regular pension that will help you take care of the much needed basic necessities post retirement and assure a secured tomorrow.

Why retirement plans ?
Retirement plans are designed to ensure that your retirement years truly become your golden years. They will provide you the financial security to pursue your unfulfilled dreams !

Why do one needs retirement insurance plans ?
Longer retirement years : Average life spans are increasing in India and hence, the retirement years are likely to be longer. With the rise in inflation you will need more money to live in comfort.
Financial independence post retirement : Earlier, people could depend on their children to take care of them post retirement. However, as a modern individual, would you not like to maintain your financial independence post retirement also?
Inflation : Inflation is an important factor. Post retirement, you need a regular income to ensure that your expenses can be met.

Why should I start planning for my retirement now ?
The earlier you start planning for retirement, the larger will be the corpus for you at the
time of your retirement. Neglecting your retirement needs can prove to be costly later in your life.
Life Annuity for annuitant with return of purchase price on death to the beneficiary.
Apart from the benefit of a comfortable retirement, also enjoy tax benefits as per prevailing tax laws.

Types of Retirement Plans :-
Among the different types of retirement plans, there are government-sponsored plans, personal plans, annuities, and employer-sponsored plans:

• Government-sponsored Plans: The largest government-sponsored retirement plan is theSocial Security plan .
• Personal Plans: The most popular example is the Individual Retirement Agreement or IRA, which can come in different types according to their tax treatment .
• Annuities: These are contracts established with an insurance company; there are fixed and variable annuities .
• Employer-sponsored Plans: The two types of employer-sponsored retirement plans are qualified and non-qualified retirement plans. Qualified retirement plans meet the Internal Revenue Code requirements and the Employee Retirement Income Security Act of 1974 (ERISA) requirements. These plans offer several tax benefits: they allow employers to deduct annual allowable contributions for each participant; contributions and earnings on those contributions are tax-deferred until withdrawn for each participant; and some of the taxes can be deferred even further through a transfer into a different type of IRA. Non-qualified retirement plans are those plans that either do not meet the IRS Code requirements or the ERISA requirements.