Fewer and fewer people today are covered by the government sponsored pension schemes – most salaried people have a basic Provident Fund but are otherwise left to fend for their own. Self-employed professionals and businessmen often do not even have this. On the other hand, life expectancy has significantly – most would want to plan for retired life atleast till the age of 85, if not more. Assuming a retirement age of 60 or 65, this is a good 20-25 years of life that has to be planned for.
Cultural factors too have contributed to the importance of retirement planning. Families have got nuclear – it has become more common for children to travel elsewhere in lookout for good career opportunities. Even if children stay committed to supporting their elderly parents, the latter increasingly want to avoid over-relying on this support. The mindset has changed to plan to be self-reliant, and take the support (financial or otherwise) offered by children as a welcome bonus.
There are various dimensions of a retirement plan, in terms of how they are useful and what factors should one go about looking for in each of them.
Pension arrangements have a number of advantages:
when people come to retire they will experience a reduction in income - a pension makes up for some of this loss of income in retirement;
pension schemes can provide protection in the form of lump sums and pensions to dependants in the event of a member's death;
in order to encourage pension schemes, the State provides tax relief on contributions made to pension schemes and the growth in their investments.
For Purchasing a Pension plan or any help visit here : http://www.thepolicykart.com/calculator.php?id=Pension%20Plan
Cultural factors too have contributed to the importance of retirement planning. Families have got nuclear – it has become more common for children to travel elsewhere in lookout for good career opportunities. Even if children stay committed to supporting their elderly parents, the latter increasingly want to avoid over-relying on this support. The mindset has changed to plan to be self-reliant, and take the support (financial or otherwise) offered by children as a welcome bonus.
There are various dimensions of a retirement plan, in terms of how they are useful and what factors should one go about looking for in each of them.
Pension arrangements have a number of advantages:
when people come to retire they will experience a reduction in income - a pension makes up for some of this loss of income in retirement;
pension schemes can provide protection in the form of lump sums and pensions to dependants in the event of a member's death;
in order to encourage pension schemes, the State provides tax relief on contributions made to pension schemes and the growth in their investments.
For Purchasing a Pension plan or any help visit here : http://www.thepolicykart.com/calculator.php?id=Pension%20Plan
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