As one grows older and reaches the age of 60 years, the desire to retire and live a life of rest and relaxation increases. Many people have a host of leisurely activities planned for their retirement years. Some have plans to invest in a new hobby, some want to travel the country or the world, while others simply want to relax in their backyard and spend time with their grandchildren. To be able to enjoy these pleasant retirement benefits, one must have a secure source of income. This is why retirement planning is important.
However, many young people often focus simply on their present and near future and keep delaying their financial planning for retirement, which can lead to serious consequences as retirement time nears. This article takes a detailed look at why retirement planning is important.
- Retirement planning helps you be financially independent
Whether one is in their late 20s or early 70s, being financially independent is always a good thing. Not having to depend on others for one’s needs brings a sense of freedom and confidence in oneself. However, many middle-aged people often do not take retirement finances seriously because they are convinced that others will take care of them. But there is no saying what turns life can take. It is always best to manage one’s financial needs oneself.
Investing in a pension plan that provides you regular pay-outs once you retire can be an effective way to achieve financial independence during the golden years of your life.
- Medical emergencies are taken care of
Though retirement is a period of rest and repose, it is also fraught with illnesses, visits to the doctor and hospitals, medical check-ups, and so on. The immunity system weakens as one ages, leading to an increased vulnerability to diseases. A strong financial system is important to have to deal with this onslaught of health issues. With no regular source of income available anymore, retirees may have to depend on others or let their ailments go untreated. This can easily be avoided by opting for well-designed retirement plans in India.
These plans provide a pay-out at the frequency of your choice. You can choose to receive annual, monthly, or quarterly pay-outs. These pay-outs can help relieve the financial aspect of your health woes to a great extent.
- Retirement planning is the only way to tackle inflation
Inflation is a reality one must face when planning to achieve any financial goal in the future. And when it comes to retirement, which may be a decade or decades away, inflation can leave one in a tight spot. Hence, one must invest in retirement plans in India that provide returns at a healthy rate. If you are looking to create long-term wealth that can help tackle inflation, especially from a retirement perspective, then you must consider ULIPs as well. These plans provide life coverage while also allowing you to invest in equity funds, debt funds, or hybrid funds, as per your requirement.
- Goals become easier to achieve
Having goals is inherent to humans, and this only sharpens with age. Thus, there may be several goals you have set for your retirement years. It may include a trip to Europe with your spouse, buying and practicing a certain musical instrument, or you may have a plan to start your own enterprise. To avail of the funds for these and enjoy retirement benefits, one must invest in the right kind of retirement planning at the earliest.
- Retirement planning ensures peace of mind
After one has lived a major chunk of their life, the most important thing they seek is peace of mind. No longer faced with the pressures of work life, retirees wish to live the rest of their lives unfettered by worries or tensions. And when one has already carried out the work required to plan their retirement, this peace of mind becomes easier to achieve. As a retiree with a good pension plan in place, you do not have to worry about when your next paycheque will arrive, whether you will be afford that trip to South India, or whether the next medical check-up could be done at a good-quality hospital.
Your retirement plan ensures that many of these things are taken care of, so that all you have to do is sit back and relax.