Language

Call us

/content/dam/tataaialifeinsurancecompanylimited/navigations/new-call-us/Close.png

starFOR EXISTING POLICY

Have query on premium, payout or any servicing need?

Dedicated NRI Helpdesk:

Call Icon +91 22 6251 9966

Monday - Saturday | 10 am - 7 pm IST
Call charges apply

Plus IconFOR NEW POLICY

Want to buy a new policy online?

For Indian Residents

Call Icon +91 22 6984 9300

Give missed call for a call back:

Call Icon +91 11 6615 8748

Monday - Sunday | 8 am - 11 pm IST

Exclusively for NRIs

Initiate Internet Call

Data charges may apply

Give missed call for a call back:

call +91 11 4473 0242

Available All Days | 24 x 7

Back Arrow Icon
Close Button
Back Arrow Icon
Close Button

Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

+91 dropdown arrow

Select Plan dropdown arrow
  • Term plans
  • Saving plans
  • Wealth plans
  • Retirement plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in. T&C apply.

5 Golden Rules to Bring Your Retirement Planning on Track

Yes, it is a way to explore the world and do things you intended to do when you didn't have the time! So, what will keep you going to accomplish your goals in your retirement life? A weak financial condition! Well, yes! Many of you often invest in retirement plans. But have you done justice to your hard-earned money? Is your retirement plan on track? If not, here are five golden rules to do the same! So, let us get started!
 

  1. Evaluate Your Retirement Corpus

    Investing in retirement plans is not just the right key. It would be best to do it proficiently to reap more returns. So, how to go about doing it? Well, you can start by calculating your current monthly expenses. It will include your household expenditure, medical expenses, etc. There are other entertainment expenses and family commitments too.

    If you want to lead the same kind of life after your retirement, you should plan for a retirement corpus that is at least 20 times your current expenses. On the other hand, you can also account for at least 6% inflation and evaluate your financial needs. 

  2. Choose Retirement Products Wisely

    Financial service organisations such as insurance providers offer various retirement solutions to safeguard your life. You must choose the right product for your financial needs. For instance, if your family has a good legacy leaving behind a house property for you to settle down and independent of your earning, you have to work on an annuity plan to manage your routine expenses and other short-term emergencies.

    On the other hand, if your family is dependent on your earnings for their survival, you have to ensure a financial condition to secure their future with the retirement plan. In such cases, you have to research and get introduced to the varied retirement plans available, compare their benefits and choose the right solution. Insurers also provide flexible features to enhance the plan based on your needs. So, you can always reform the basic plan to accommodate your financial goals based on the current flow of income. Therefore, choosing the right product will help you invest better and earn well.

    Annuity insurance and  pension plans from life insurance companies are considered a reasonable choice for good returns, flexibility and tax* benefits. Immediate and deferred annuity plans are the two most important choices made in retirement plans. The immediate annuity option starts providing the regular income immediately, while the deferred annuity option defers the beginning of regular income payment later.

    Also, the Income Tax Act, 1961 provides tax* deduction benefits up to ₹1,50,000 on investment plans under Section 80C. And Section 80CCC is a subsection that allows for a deduction on the taxable income for annuity plans issued by life insurance companies. Therefore, when you buy an annuity plan ensure you receive the maximum benefits while saving on tax*.

  3. Increase Your Investment When Your Income Increases

    Early retirement planning is the best way to start. As your commitments are less, you tend to invest more. Also, you will develop the discipline to invest regularly. However, with increasing family commitments and standard of life, you will have to start investing more to retain the same standard after retirement. And, to do so, you have to increase your investment amount with the increase in your annual income. This will help your retirement planning stay on track with the increasing inflation rate.

  4. Keep Revising Your Retirement Plan

    You must have witnessed a lifestyle change, increased financial investment products, and corresponding features. Financial service organisations keep modifying the products to benefit the customers according to the rising needs. Therefore, you should keep yourself aware of such developments and keep improvising the investment in retirement plans to keep it on track.

  5. Stay Invested

    The final and most important golden rule to keep your retirement plans on track is to stay invested. It is evident that the longer you invest, the better your returns are. Unfortunately, some individuals keep withdrawing funds from retirement plans to fulfil temporary family obligations or to manage an emergency. While it is difficult to handle such a financial crisis, it is better not to disturb your retirement funds to receive better returns later when you are in need.

 

Conclusion
 

Retirement plans are important to lead a happy and peaceful retirement life. It ensures that you stay protected and ascertain financial assistance in an emergency when you grow older. You must have started investing in a retirement plan from a young age. However, it would help if you made the necessary efforts to keep your retirement plans on track for the best returns.
 

Evaluating the retirement corpus taking into account the inflation rate, choosing the right retirement solutions, increasing the investment with an increase in your income, revising the plans, and staying invested for a longer period are five golden rules to keep your retirement plans on track. Follow these rules and realise the importance of retirement planning to fulfil your financial goals!
 

L&C/Advt/2022/Nov/2723

Discover Tailored Financial Planning Solutions to Secure your Future

+91 dropdown arrow
  • +93 Afghanistan

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.


 

Looking to buy a new insurance plan?

Our experts are happy to help you!

+91

Select plan
  • Term plans
  • Saving plans
  • Retirement plans
  • Wealth plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in

People Like You Also Read

Limited Pay vs Regular Pay Term Insurance Premium
Read More
6 Types of People Who Need Term Insurance
Read More
Term Plan and Comprehensive Plan: Understanding the Plans
Read More
Should You Purchase a Renewable Term Insurance Plan?
Read More
What is Direct Term Life Insurance? - Advantages And Features
Read More
Why Must You Pay the Term Plan Premium Till the Age of 60?
Read More
3 Options When Your Term Insurance Plan is Getting Expired
Read More
Types of Term Insurance Plans and How to Choose the Right One for You
Read More
Do You Get Money Back with Term Life Insurance?
Read More
How to Cancel a Life Insurance Policy
Read More

People Like You Also Read

Limited Pay vs Regular Pay Term Insurance Premium
Read More
6 Types of People Who Need Term Insurance
Read More
Term Plan and Comprehensive Plan: Understanding the Plans
Read More
Should You Purchase a Renewable Term Insurance Plan?
Read More
What is Direct Term Life Insurance? - Advantages And Features
Read More
Why Must You Pay the Term Plan Premium Till the Age of 60?
Read More
3 Options When Your Term Insurance Plan is Getting Expired
Read More
Types of Term Insurance Plans and How to Choose the Right One for You
Read More
Do You Get Money Back with Term Life Insurance?
Read More
How to Cancel a Life Insurance Policy
Read More
Website Logo Image Icon

Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance

Disclaimers

  • Insurance cover is available under the product.
  • The products are underwritten by Tata AIA Life Insurance Company Ltd.
  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.