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Tag Archives: retirement planning

When is the right time to start planning for retirement?

When is the right time to start planning for retirement? - Aegon Life

Retirement is supposed to be the most relaxing phase of your life. It is the time when you finally get a chance to do things that make you happy. You might want to go on an exotic vacation or invest in some hobby. However, retirement phase without proper planning can take away your freedom. To ensure that you are not becoming financially dependent in your golden age, it is vital that you plan your retirement well in advance.

The ideal time to plan retirement is early 20’s. This is exactly when you start earning your pay cheques. You must be wondering what is the need to plan in the age when you are supposed to enjoy and spend, right? But this theory is backed by strong reasons. The sooner you begin to save, the more time your money has to grow. Let us see a how a retirement plan works:

A retirement plan has two stages;

The first stage is compounding stage, a stage where you invest regularly while you are earning. For example, if you start at the age of 24 and put aside 20,000 a year. By the time you reach 60, you will have an accumulation of 7, 20,000 plus 9- 10 % of annual income of all the compounding years. Now, let’s say you defer the starting age to 35, you will miss out on crucial 10 years and your savings will be much lower.

The premium you invest in the first stage also helps you gain tax benefits.

The second stage is one when you start getting regular income after retirement. It will be like getting a salary without having to work for it, so you don’t have to compromise with your lifestyle even after retirement. You also get the flexibility to withdraw lump sum amount if needed. And if you avail a good plan, you can get this income for life and even after that to protect your family from falling into the financial debt.

In brief, life is going to be without any stress and worries.So, if you haven’t yet started to plan. Start today for a bright post-retirement life.

How to Make Investments after Retirement?

How to Make Investments after Retirement? – Aegon Life – Blog

With retirement comes your greatest fear – financial dependency on others. You may have saved years and years in pension plans and other avenues that would you a paltry sum to see to all your needs, but is that really enough? While saving up for your old age is a prudent and much needed decision to make and implement, thinking of other options can certainly be a good choice as well.

If you have set your retirement goals already, you would know how off the track you are in considering the pension amount to cover up the costs. Whether you are planning to take a world tour or retiring in your very own villa at a pleasant location, having a backup in terms of finance can save you a great deal of embarrassment in your old age. It would certainly be better than relying on someone else to see your financial needs.

Here are some investment options that you can consider after retirement to live your dreams even in old age:

Senior Citizens Savings Scheme (SCSS) was started by the government especially for the elderly. Every citizen above the age of 60 is eligible to invest in this scheme along with a few above 55 years of age who are subject to certain conditions. Since the scheme is specifically meant for senior citizens, making an investment here could certainly be quite profitable owing to the fact that their needs would be taken care of.

Providing higher rate of interest as compared to other savings option, fixed deposits work as the best avenue in which to invest in for people of any age. You can keep your funds safe wherein it would increase a great deal until the maturity period when you receive it back. You can live your dreams, no matter how old you are, with the investment you make.

For those who have an appetite for risks may find investing in Monthly Income Plans (MIPs) as the best option due to the high returns they can receive. These mutual funds are market linked investment options that have a certain percent of assets in equities. As mutual fund investments are risky yet highly yielding options to invest in, this option could very well be a great investment avenue for people after retirement.

The Fund Choice offered by Aegon Life in the iMax plan for pensioners helps them invest with an assurance of yielding high returns.