Best Age For Investing In Pension Plans
- DetailsWritten by PolicyBazaar -
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Updated date : 08 November 2019
Is there a best age for investing in pensions schemes? It is completely wrong to think so! When it comes to your post retirement life there is nothing called an early planning. With the expenses of daily life increasing at a rapid space, nobody knows what is going to happen when you are no longer in a stable job. People are in their most vulnerable stage during the old age. With the joint family structure crumbling rapidly, there is nobody you can fall back on. The only backing that can have any meaning in such a scenario is the all-important financial backing. When you are in a job your salary remains your strength, but when even this stability ends, what remains for you!
In order to make the life of people easy and give complete security in the old age there are a number of pension schemes available that can provide you the ideal coverage over the existing pension plan in your office.
Start as soon as you are in a job
Only when you start planning from an early stage will it be possible for you to develop a corpus which his ideal for covering you when you are no longer in a job scenario. This is the reason why most organizations call for 12% savings from the basic income of individuals from the very first day of employment. If your office or institution has an existing pension scheme well and good, otherwise it is ideal to go for a saving scheme that takes 12% from your regular income and provide the related benefits when you retire.
When You are in Your Mid 30s
Those who have an existing pension scheme at the organization they work in presently should take stock of their situation during the mid thirties and project how much they are going to need after retirement. Is the current scheme ideal for such situations, or do you need to save more in keeping with the rising expenses? Based on the answer to these questions find additional plans to invest in and secure your future.
Planning in Mid 40s
Mid forties is a time when you are ripe to think of retirement and any planning afterwards can simply lead to a naught. Therefore, this is high time to consider your situation and give realistic projections regarding your future. For example, you know by now where you are going to live when you retire, about your plans to travel or remaining in the same place, as well as your liabilities post retirement. Base your planning on such scenarios and find a scheme that works.
You may also like to read : Retirement Planning in India
Mid 50s Planning
Mid fifties is the time when some serious planning is in the offing. Now you simply cannot take tings lightly any more, because the water is under the bridge! Health care becomes a major issue at this stage therefore find a plan besides your existing investments that takes care of such crucial issues.
Any age is a good age to start thinking of retirement once you become ready to earn and make a living. Crucial steps in planning involve understanding the importance of such plans and changing your lifestyle to accommodate the required savings for a secure old age!
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