123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Insurance >> View Article

Role Of Pension Plan In Retiring Rich

By Author: Easy policy
Total Articles: 20

The role of the pension policy has come into focus, given the increasing life expectancy in India and the rising costs of living associated with inflationary pressures. With there being a wide range of options available to invest your money in, retirement planning is all about investment returns, helping you take charge of life as you get set to relax after having a run at it.

As is always the case, it pays to plan well of your retirement age. Pension plans involve investing small and regular amounts of money into securities that are approved and strictly monitored by the IRDA, the Insurance Regulatory and Development Authority. This is known as the accumulation phase, where the amounts that you invest in pension plans tend to get accumulated for the payout that you plan for in your retirement age. You could choose the number of years that plan to spread your accumulation phase over, giving you flexibility in your retirement planning in line with your earnings, plans, and circumstances.

Alternatively, there is also the option of immediate annuity, where you could reap the benefits of your pension policy by investing a lump sum amount. This is another form of retirement planning that lets you get returns on a regular basis on the amount invested in one shot.

Technically speaking, the period that you start getting the investment returns out of your retirement plans is called the vesting age. This period is marked by regular payouts, though you may not be able to withdraw any of your invested amounts. The next phase in pension plan is the annuity phase – this phase allows you to withdraw as much as one third of your invested amount, while the rest of your investment plan is used to pay your pension

You could see how you could use your hard earned earnings to get investment returns in your retirement age – whether it is rising costs, medical expenses, or general living expenses, you do not have to deal with uncertainties of the future when you invest in pension policy. This way, you ensure that you are well poised for the stage of life that is all about freedom and choice. Ultimately, the best pension plan is one that gives you peace of mind with minimal risks involved, while maximising your investment returns.

Compare pension plan quotes and chose best plan to get regular income after retirement. We helps to compare best offers from leading insurance companies.

Total Views: 90Word Count: 408See All articles From Author

Insurance Articles

1. How The Car Insurance Calculator Calculates Your Premium
Author: Bhargav Baweja

2. Permanent Protection For Temporary Living Identifying The Three Elements Of Effective Coverage
Author: insurance

3. Do I Need To Compare Bike Insurance To Only Cut My Cost?
Author: Dinesh Mittal

4. Types Of Auto Insurance Discount Programs
Author: insurancecenter

5. Satisfy Your Dream Of Owning A Home With The Home Loan
Author: Bank Bazaar Loan

6. Public Insurance Adjusters And Few Factors To Consider Before Hiring Them
Author: Donna

7. Clarifying Coverage - Why Insurance Is Essential For Modern Living
Author: insurancecenter

8. Select One Of The Best Auto Insurance Companies In California
Author: caleagleinsurance

9. Unique Ways To Save On Auto Insurance A No-nonsense Guide To Save Money Without Sacrificing Coverage
Author: insurancecenter

10. Health Insurance Company
Author: Kent Pinkerton

11. Compare Health Insurance Online & Plan For The Emergency Room
Author: Muhammad Waqar Asghar

12. The Best Mortgage Advice Liverpool
Author: sylver

13. Professional Mortgage Advice Liverpool
Author: sylver

14. Mortgage Advisor Leeds Makes The Process Of Mortgage Quick And Easy
Author: sylver

15. Help From A Mortgage Broker Sheffield
Author: sylver

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: