As a woman's role and responsibilities in the family and society constantly evolve, their retirement planning becomes more important! With a longer life expectancy, financially dependent culture, and unique challenges, investing in retirement plans becomes critical in a woman's life in India.
For the journey towards financial freedom, a woman must embark on a path towards being self-reliant, fulfilling their retirement needs.
While there are varied retirement plans for women, choosing the most suitable product is important to secure it long-term.
Here are a few tips to help them make smart financial decisions.
Financial Freedom Ahead: Retirement Planning Tips for Women
Save and Invest Wisely, Embrace Longevity!
Women are known for making improved healthcare and lifestyle choices. And therefore, their life expectancy is higher than that of men. So, they should save and invest wisely to ensure they are financially secure throughout their life after retirement and until death.
Dream, Plan, Achieve: Set Timely Goals!
Retirement planning for women can be successful when future money goals are set precisely and timely. Thinking along the following lines can help determine their goals.
What do you want to do during your life after retirement?
What are your future family financial commitments?
Only when women set their goals timely can they determine the funds required and take the necessary steps to accomplish them with effective retirement plans.
Guarantee the Golden Years: Opt for Retirement Plans
Retirement pension plans can be one of the most preferred choices for securing their life after retirement.
Pension plans have two phases:
Accumulation phase— In the accumulation phase, the policyholder will secure a specific amount regularly for the retirement corpus. The amount will be invested in varied financial products based on their risk appetite.
Vesting phase — At the end of the accumulation phase, the policyholder can withdraw a portion of the fund and utilise the remaining to purchase the immediate or deferred annuity plans for a regular income throughout their retirement.
Women policyholders can research the best retirement plans and customise them based on a convenient policy period, premium, and the required maturity benefit to compare and determine the most suitable product.
Furthermore, a pension plan for women can be available with added advantages such as a discount on the premium.
Shielding their Future: Purchase Life Insurance for the Family’s Financial Security
Being single or married, women having a dependent family should always secure their family with a life insurance policy.
Our Tata AIA Life Insurance Plans are tailor-made for individual and specific needs. They can be customised to provide savings and investment benefits to help secure retirement while ensuring a life cover.
Empower the Finances, Create a Budget!
The primary goal of retirement planning should be not to compromise on the current lifestyle. Therefore, women must create a budget based on their current income, expenses, and other liabilities and allocate a fund regularly for their retirement corpus.
However, securing that fund for retirement plans should not affect their current lifestyle preferences. Such a practice will help them invest for the long term conveniently.
Picture Retirement Life: Assess Retirement Needs!
Assessing retirement needs is crucial while devising strategies for women and retirement planning. They should determine the basic financial requirements considering their daily routine, such as groceries, medical expenses, clothing, transportation, etc., to assess their retirement needs and plan their savings and investment journey accordingly.
While considering these financial requirements, one must account for the inflation rate. Otherwise, the retirement corpus accumulated may not suffice for their future needs, as desired.
Planning Beyond Finances: Health at the Heart of Retirement!
With the changing lifestyle preferences and stressful professional life, women are more prone to various critical illnesses. Therefore, while allocating funds for retirement planning for women, considering the increasing medical expenses is an important tip. Purchasing a health insurance policy, an add-on rider# option such as for the critical illness benefit in life insurance, etc., can be helpful.
Fortify Finances: Seek a Diversified Portfolio
As varied financial products are available for retirement planning, a diversified portfolio is crucial to securing investments. Considering a fine mix of equity, debt, and hybrid fund options based on investment horizon and risk tolerance is a good choice. Furthermore, they can automate investments to make regular and timely investments convenient.
Take Control of the Finances: Be Self-Reliant, not Dependent!
Women should always look for opportunities to break free from financial dependence. Whether single or married, having their own savings for their retirement plans will provide the necessary financial security and flexibility during unforeseen circumstances.
Retire Strong: Invest for the Long-Term
While planning for retirement, saving or investing in financial products for the long term is essential. The longer the investment, the better the benefits. For example, investments in financial securities can negate temporary financial fluctuations and increase the investment value in the long term.
Seize the Future, Start Early!
The earlier women start investing for the future, the better and the higher the returns. When women start investing at a younger age, they will start developing the habit of investing regularly.
In addition, they can save and invest more in retirement planning because they will have significantly fewer family commitments at an early age.
Women can always embrace the power of retirement planning with smart financial planning decisions! While considering retirement plans, starting early, setting clear goals, creating a budget, diversifying the investment portfolio, venturing into pension plans, taking control over the finances and breaking free from financial dependence can strike a secured life after retirement for women.