- Savings for long-term Today, there are different of pensions plans in the market that you can choose. Some plans require you to pay a lump sum upfront, other need you to pay smaller amounts periodically. No matter, the type of plan you choose, rest assured you would have savings in the long run. The pension plans are specially designed to create an annuity, which can be further invested to generate a steady stream of income in your post-retirement life.
- Beat inflation One of the biggest advantages of starting to invest in pension plans from a very early age is that it helps you to counter the effects of inflation. While assessing the different types of pensions plans make sure that you look for a plan that guarantees inflation-adjusted returns. Invest in a plan that assures returns that help you can keep with the rising prices of the goods in the long run.
- Pension plan for every need Every individual has different financial goals and needs. The good thing though is that today there are plenty of pension schemes available in the market; you can choose the one that best suits your retirement plans. If you have surplus funds, you can invest the amount in a lump sum and get annuity payments immediately. For people who cannot afford paying in a lump sum and prefer monthly payment approach, you can choose to invest in a deferred annuity plan and get the benefit of compounding interest before you start getting the pay-out.
- Protects the interest of your loved ones It is one of your primary responsibilities to safeguard your loved ones and ensure that they life a happy and financially independent life even in your absence. This is where investing in a pension plan becomes so important; it gives you the leverage to create a pool of wealth. You can choose to invest in a pension plan that guarantees dual benefit of insurance as well as monthly income to your family while you are not around.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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