Pension Plan

Monthly Expenses: While planning for retirement, it is very important to keep in mind the monthly expenses. After retirement, the regular source of income is cut-off. Thus, in order to keep up with the regular monthly expenses of the family, important to create a financial corpus big enough to take care of all these expenses. Apart from the monthly expenses, it is important to allocate ample fund for the post-retirement unexpected financial emergencies.

Inflation: While purchasing a Pension Plan, it important to keep in mind the growing inflation rate and plan accordingly that how much Corpus will be sufficient enough to maintain a financially secured lifestyle after retirement.

Life Expectancy: There is no way to correctly predict how long an individual will live. Thus, while purchasing the best pension plans your retirement fund should be sufficient enough to support your financial needs during the old age.

Medical Expenses: Young people often tend to ignore the future medical expenses. However, when one gets old, they may have to spend a bomb on medical check-ups and treatments. Thus, it is very important that your Pension Plan should provide you with an adequate fund to deal with any type of medical emergencies.

Assets and Loans: Another important thing that you should consider while purchasing the best Pension Plans is your outstanding loans and current assets. In case you have any outstanding loans, then repay off these loan(s) on time, If you tail to repay the loan(s) on time then it can take away a chunk of the annuity income.

Understand Your Financial Needs: It is crucial that you understand how much you need to sustain yourself and your dependents after your retirement.

Do Some Research: Read through the pension plan details in depth to understand what you are signing up for. The pension details in the pension scheme will offer information on the periodicity of your income, how much is guaranteed, how much is dependent on market scheme, etc.