How Do You Choose the Right Retirement Plan for Your Needs?

The Indian market provides numerous Retirement Plans to help people achieve financial independence for their golden years, but not every product is a right match for your portfolio. Some plans are designed to provide a steady income post-retirement, while others are exclusively for wealth accumulation for golden years. 

You should always choose investment options that help you achieve your desired lifestyle and goals for a secure, worry-free, and comfortable retirement. You may explore Shriram Life Insurance’s retirement solutions if your primary goals revolve around financial security and stability. 

This blog discusses more about choosing retirement plans aligned with your needs so you accomplish all your retirement goals.     

Define Your Aspirations for Financial Independence

Identifying clear aspirations should be your starting step during the retirement planning phase because it will help you choose the right investment plans. Decide whether you want a modest, need-based retirement or one filled with travel and leisure. 

Additionally, factor in crucial aspects, such as medical costs, living expenses, inflation-adjusted expenses, emergency funds, etc., to determine the amount you’ll need to live your dream retirement life. 

If you’re looking for post-retirement income options to create a stable income flow during retirement, consider investing in Shriram Life Assured Income Plan (UIN: 128N053V05). It provides regular income options and combines the best features of Retirement, Child, and Savings Plans. 

Assess Risk Preferences for Smarter Savings 

Everyone should evaluate their risk tolerance before choosing retirement plans. Those with high-risk tolerance may invest in market-based plans like equities or mutual funds to earn higher returns over time. 

However, people with a low-risk profile desiring financial stability and predictability in retirement should opt for safer options, such as non-linked Life Insurance-backed plans. This approach will help you prevent financial distress during economic downturns, depleting your retirement savings. 

The Shriram Life Early Cash Plan (UIN: 128N093V02) is one of the best low-risk plans that preserve your capital investment and provide steady growth through the power of compounding and cash bonus guarantee, so consider exploring it for a secure retirement. 

Maximise Benefits with Tax-Saving Retirement Plans 

One of the smartest ways to maximise your savings is investing in plans that qualify for tax benefits u/s 80C, 80CCC, 10 (10A), etc.

For instance, if you include the Shriram Life Pension Plus plan (UIN: 128L065V03) in your retirement portfolio, you can claim the premium payments as standard deductions u/s 80C while filing Income Tax Returns (ITR) to lower your taxable income and tax liability. 

Maturity proceeds can be partially or fully tax-exempt u/s 10(10A), subject to certain conditions. We recommend evaluating the tax benefits of pension plans and other options to make strategic choices. 

Embrace Flexibility to Meet Changing Needs 

Retirement may not always go as planned; hence, always choose investments with flexible features. Rigid policies may cover today’s goals but may not accommodate evolving family needs, healthcare emergencies, or desires to pursue a hobby or travel the world. 

If you’re exploring flexible options, you may check the Shriram Life Saral Pension Plan (UIN: 128N092V01). Besides providing two annuity options, lifelong annuity payment, inbuilt critical cover, it lets policyholders take policy loans to cover unexpected financial needs. 

Secure Instant Income After Retirement 

Since retirement marks the end of a predictable, stable salary income, you must invest in plans that generate substantial income to maintain your lifestyle during the golden years. Look for post-retirement income options, such as annuity plans, that provide immediate financial support. 

The Shriram Life Immediate Annuity Plus Plan (UIN:128N063V07) is one of the best annuity plans for retirement as it provides immediate annuity plus insurance. You can use it to enjoy regular savings and tax benefits while receiving a steady flow of income for post-retirement stability. 

Conclusion

Investing in any financial product isn’t enough to achieve financial independence and stability during retirement. You must invest in plans that match your risk profile and help you achieve the desired economic goals in a realistic time frame. If you’re overwhelmed with the available options, consider evaluating them using the discussed tips. 

It will help you find the right retirement plan. At Shriram Life Insurance, we provide various plans, including Child Plans, Retirement Plans, Protection Plans to help people achieve diverse financial goals. You can contact the Shriram Life Insurance team to get assistance with choosing the right plan for your needs.