Pension Planning

POSTED BY sonadhi ON April 27, 2013 4:46 pm COMMENTS (3)

Hi,

What you think about pension plans available in the market?It seems necessary to cope up with the monthly expenses by considering the inflation after few decades.As working in private sector,after the retirement to get monthly amount equal or more than the monthly expense,what you suggest in spite of the gender.I refer the pension plan to NPS(New pension Plan).

3 replies on this article “Pension Planning”

  1. Prasanna Kottapalli says:

    See a good planner and first find out what should be your corpus by the time u retire. Based on the output, start investing in various sips in MFs and RDs. Besides, your PF, Gratuity and any existing endowment plans will also add up.

    Pension plans are a waste and i never suggest them to my clients as i dont see them considering my future lifestyle. Blindly investing in some sips not knowing your corpus may not lead you to ur goal.

  2. Dear Sonadhi, no matter which vehicle you chose to travel, the end result i.e. pension in your retired life ‘ll depend upon the corpus created by you over the years. So do not think that anything named as pension or retirement in it’s name is the only option for you to save for your retirement. Try to create a big corpus. As big as you can. You never know, what may be the inflation & it’s impact in future.

    As rightly pointed out by dear Pattu above, PF+PPF+Eq. MFs may be an ideal vehicle for you.

    Thanks

    Ashal

  3. investing in instrument which give real returns (returns above inflation) is necessary to cope with expenses when you retire.

    Traditional pension plans (non-market linked plans) do not do this. So best to stay away.

    Ulip based plans are like balanced mutual funds with huge expense ration and exit loads. An actively managed mutual fund with good history will do any day better.

    Mixing investment with insurance is like drinking and driving. You will reach somewhere. No guarantee that it will be home.

    Best to invest in MFs+PPF+EPF for retirement after using a good retirement calculator like … 🙂

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