Retirement Planning Guide

Retirement Planning ensures that a satisfactory income and enjoy a comfortable lifestyle, even when you quit you job. A growing number of young Indian professionals are moving away from the traditional extended family. Given that the support does not come easily, the parents understood the need to meet their needs during their retirement years.

Until recently, there are many young Indians 20 and 30 were ignorant of the retirement planning and have not been taken seriously. For them, retirement is something that was too far away.

However, the clever advertising campaigns by private companies, life insurance, such as ICICI Prudential Remove job, no life, "HDFC Standard retire with pride, I live with respect" and a last Ageon religare "Superannuation amount you owe? Know the exact amount of the pension. "Helped awareness about retirement planning.

Planning for retirement does not stop once you've taken a pension plan one of these insurance companies. It's just a beginning, and if you start at an early age is very useful. Wondering why you always need a retirement plan? Here are a few reasons:

1. Inflation: Because of inflation, which diminishes the value of money to keep from year to year, so the value of 100 rupees, five years ago was much larger than the value of 100 rupees per day. Since there is concerning about this, it is also necessary to take account of inflation-adjusted returns on their investments, while planning their retirement.
2. Increasing life expectancy: the increased longevity is the greatest benefit for the citizens of India since independence, away from state pension and income levels. Life expectancy, as in 2007, for males at birth is 67 years and 71 years for women. The globalization of medicine and modern medical practice is globalized high life expectancy. With the advance in medical technology, life expectancy is likely to increase. Result: You will have to divide for more number of years after retirement.
3. Medical Emergencies: With age come health problems. With health problems, medical expenses that may come to a gap in income after retirement. Please could lead to liquidate (sell) their assets to meet such expenses. Remember that health insurance is not always enough.
4. Changing social structures: the culture of the extended family is changing. Today, a growing number of young Indians living away from their families due to employment. So people have to develop a body to last through their retirement, without any help from the family.
5. Lack of government support pension plan: unlike the United States and the United Kingdom, where they Roth IRA and the State Council, respectively, as a social security benefit in retirement, the Indian government does not such benefits. Only 4% of India's population, mostly government employees - are covered by pensions. The remaining 96% consists of independent and professional employees who have no formal offer for compulsory retirement.
6. Job Hopping: Go With young regular jobs who cannot get pension plans considerable benefits, including super and tip. Since these two schemes require several years working in the function of a particular purpose.

There is no easier way to begin planning for the savings accounts for retirement through work such as Provident Fund Employees Pension and Family Pension Fund and the diversification of these, by their own means having the appropriate insurance coverage and invest in a mix of asset classes.