Reasons Why You Need to Buy Pension Guaranteed Plans Now

Reasons Why You Need to Buy Pension Guaranteed Plans Now

Retirement is the time to reap the rewards of years of hard work. It is the time to stop working and start living life without any worries. In order to live a stress-free retired life, it is necessary to begin planning for it today.

There are numerous retirement plans available in the market, for those who wish to remain financially independent in their golden years. Such retirement plans, also known as pension plans, provide a regular stream of income upon retirement. This amount acts as income replacement after your primary income source stops. You may use the amount for numerous purposes such as meeting lifestyle needs, undertaking a dream vacation, meeting your children’s wedding expenses, and paying medical bills, among others.

Following are five major reasons to invest in a pension guaranteed plan at the earliest.

  1. To combat rising inflation

The rate of inflation in India is increasing. The cost of goods and services are becoming expensive with each passing day. Therefore, it is necessary to shield yourself from rising inflation. You may consider investing in a pension guaranteed plan to help you manage expenses accordingly.

  1. To remain independent

Instead of having to rely on your children post-retirement, you may opt for a retirement plan. Such a plan secures the future of you and your spouse. You may remain financially independent and meet all your expenses without being a burden on anyone. A pension scheme, therefore, ensures that you have a comfortable independent future without any financial worries.

  1. To inculcate a saving habit

A retirement scheme is a long-term investment with regular premiums payable over a period of time. This inculcates a disciplined habit of saving and helps you build a sizeable corpus over the years. You may, therefore, begin investing in pension plans early in life, and enjoy the benefit of compounding.

  1. To meet your dreams and goals

Many often take retirement as an opportunity to accomplish things that they always dreamt of doing. This includes taking your dream vacation with your spouse or undertaking a hobby you dreamt of since a long time. Through regular payouts and high yields, you may easily meet your dreams and goals.

  1. To enjoy tax benefits

The government encourages individuals to save for their retired life and hence offers tax deductions towards the same. Section 80CCC of the Income Tax Act, 1961, offers tax benefit on contributions made towards pension funds. Besides, you may consider investing in National Pension Scheme and avail of additional tax benefit of INR 50,000 under Section 80 CCD (1B). This helps in reducing your tax liability largely.

Pension planning is one of the most steps in building wealth for the future. You may, therefore, invest smartly in a pension guaranteed plan and enjoy your golden years.

Categories: Finance

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