Importance of Steady Income in Your Retirement Years

Did you know that 70% of Indians will have to take their children’s support after retirement? According to a study by HSBC, titled Future of Retirement, comfortable retirement is expected by nearly 75% of the Indian working class. However, it is sad to see that only 33% are saving money to fund their non-working years. This study clearly indicates that no matter how much we want, we are not preparing ourselves financially to meet our retirement goals.

The study also found that most people believe in living life in the present, without planning for the future. Their goals are mostly short term. Most people are unable to foresee the problems they might face in old age. This was highlighted in an article by The Economic Times, published on September 17, 2018.

Saving for retirement is important and one of the best ways to do so is by investing in gratuity or provident funds that offer immediate annuity.

Here are five benefits of maintaining a steady income during retirement by investing in the best annuity plan in India.

1. Peace of Mind

What can be better than knowing that your life after retirement will not depend on anyone else? That you will be able to meet your goals and fulfil your retirement dreams? This can only occur if you plan well in time, with investments that will pay you a regular income during your retirement years.

2. Legacy Opportunities

When we grow old, our interest gradually moves towards charitable causes. Asking the family to do it on your behalf can be too much to ask of them. Having an income source lets you fulfil your wish list, without the need of any favours.

3. Better Health Management

Health issues are an inevitable part of old age. Even with a healthy lifestyle and proper diet and exercise, health does fail with age. It is important to plan financial resources for health, such that you can access the best treatment.

4. Fulfill Pre-Retirement Decisions

We all have dreams about what we will do ones we retire. It can be personal goals like taking a world tour or some career-related goals. Having funds to fulfil these desires and achieve your goals is important.

5. Tax Benefits

Retirement planning offers tax benefits too. So, investing an annuity plan with immediate can even add to your savings, given that you can deduct payments towards such plans you’re your income tax amount.

When planning your retirement, make sure you are investing in different types schemes, such as tax free, taxable and tax deferred. This will help you to strategically withdraw money when needed.

Look for the best annuity plan in India, which assures regular and timely payment of the returns generated. After all, retirement should be a time of peace and joy.