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Preparing for retirement should always be a well-thought-out and detailed process. After all, when you finally have the time and the chance to spend your days with your family, pursue your hobbies, travel, or start something of your own, you should not have to worry about the finances.
And this is why retirement planning should start at a stage when you are earning enough to allot some savings for your future expenses. There are a variety of retirement plans that allow you to accumulate your money over the years and then receive a steady flow of income that will support you during your post-retirement life. To understand retirement planning better, take a look at all the aspects of the term.
What is Retirement Planning?
At every stage of your life, you will need financial resources to help you meet your goals and commitments for yourself or your family. These can range from the smallest daily expenses like groceries and household bills to major purchases or expenditures such as education fees, business investments, buying a new car, etc.
Retirement planning involves making a long-term plan well before your retirement to ensure that you and your family are able to lead a comfortable life and fulfil all your retirement goals with the help of a guaranteed regular income or an assured lump sum of funds.
It is important to understand that every person’s retirement needs will not be the same. Depending on the number of family members and one’s individual goals, the funds you will need to sustain yourself and your family will vary. And hence, there are several retirement plans which you can choose from and customise by selecting a guaranteed sum assured, a policy term, a premium payment term, and a payout mode of your preference. This will help you ensure that the golden years of your life are financially secure and that you can enjoy them with dignity!
After 30-40 years of professional service, your body and mind need to relax and get rid of the stress, which is why you give up your professional duties. However, this also means the lack of a steady monthly salary that sustains you and your family. A pension plan provides this sustenance in the absence of a salary.
With a higher life expectancy rate in today’s time, you will need to ensure that you can save enough for your retirement fund to sustain you and your family through your retirement years. This means planning well in advance to ensure regular income for a greater number of your retirement years.
Given how inflation affects the prices of all commodities, you will need a regular stream of income to fulfil your daily and basic needs. You can decide the sum assured of your pension plan after factoring in the inflation rate so that the increasing cost of goods does not stop you from leading a comfortable life.
In your retirement years, if there is a medical emergency, you need to be equipped with the financial resources to face the challenge. While your savings may not be enough, retirement planning, or a pension plan can effectively help you get through the expenses of the treatment.
After your retirement, you are left with a lot of time which you can spend with your family and try some new hobbies and aspirations. If you have always wanted to start a business, a workshop, or an art boutique of your own, a retirement plan can provide the financial support you need.
If you have been employed in the private sector, you are not entitled to a government pension on retirement which makes it necessary for you to make one of your own. A retirement insurance plan can help you with the regular pension funds just like a government-backed pension plan
A Non-Linked, Non-Participating, Annuity Plan (UIN:110N161V04)
HAVE A HAPPY
RETIRED LIFE
Ideally, it is advisable to start planning for your retirement at an early age when you are earning a stable income and a regular salary. To understand better, here is a breakdown of when and how you can start your retirement planning
In your 20s
In your 20s
In your 30s
In your 30s
In your 40s
In your 40s
In your 50s or beyond
In your 50s or beyond
Having a retirement plan in place lets you live your post-retirement life in peace since you do not have to worry about your family’s daily expenses or about the fulfilment of major goals. The pre-planned retirement policy will help you earn a guaranteed* regular income which will be adequate.
The life insurance cover in a retirement plan is meant to ensure that your family is looked after in case of your untimely death. Your family will be paid out the sum assured as a death benefit in case you pass away during the policy term.
With the help of a regular income from your retirement plan, you can focus on your short-term and long-term goals. This will help you set aside some money in case you have some major expenses coming up while helping you and your family out for your day-to-day sustenance.
The tax# benefits that come with retirement planning can help you save more for your retirement so that your retirement corpus can be directed towards meeting the needs of your family. There are tax deductions and tax exemptions under Section 80C and Section 10(10D) of the Income Tax Act.
Your retirement plan is designed to grow your wealth such that the inflation rate over the years does not eat into your savings. Hence, by the time you have accumulated your retirement funds, you will have adequate resources since the returns are not affected by the inflation rate.
When you retire, your retirement funds should not only suffice for your basic needs but also for emergencies which may be too expensive for your savings. A retirement plan lets you accumulate and save any amount of funds for various emergencies which you should be able to meet effectively.
A Non-Linked, Non-Participating, Annuity Plan (UIN:110N161V04)
Tata AIA
These are the broad steps that show the working for a retirement plan
Along with the maturity benefits, the life cover of a retirement plan also offers death benefits if you, the policyholder, happen to pass away during the policy period. This life insurance will provide your family with a death benefit that will help them sustain their livelihood in your absence.
Preparing for retirement at least 15-20 years before your retirement age is a safe bet since it allows you to save adequate retirement funds during this term. A longer tenure means you do not have to compromise on your other expenses while investing in the pension policy.
Decide which annuity option will work better for you, your family, and your financial goals. You can choose if you want to accumulate your funds through premiums and then receive the benefits on maturity or invest a lump sum right before you can start receiving the benefits.
It is always better if your retirement plan allows you to increase the payout benefits through a top-up. Such a feature can help you avail of a greater regular income in case you need to fulfil additional and unplanned financial goals later on during your retirement years.
Having a reliable insurance provider is important since their claim settlement ratio and reputation in the industry will determine if your claims will be settled on time and what are all the options they have to offer when it comes to getting you a suitable retirement plan.
What is retirement planning?
Retirement planning comprises building a financial plan over the years so that you can enjoy financial stability during your retirement years. You can choose to receive a guaranteed* regular income during your retirement that will take care of you and your family’s needs, any major goals as well as emergencies.
Is retirement planning for everyone?
Yes, everyone should have a retirement plan as it will help them be financially independent during their retirement years. When you retire, the absence of a monthly or regular salary should not stop you from providing for your family and fulfilling their aspirations.
How do I purchase a retirement plan?
To purchase a retirement plan of your choice online, you can visit the official Tata AIA Life Insurance website. If you wish to purchase an annuity plan offline, you can locate any of our branches and visit us.
Are retirement plans the same as pension plans?
Retirement plans are similar to pension plans. However, all pension plans may not provide a life insurance cover for you and your family. All Tata AIA Life Insurance retirement plans come with a life insurance cover for your family’s financial security.
What are annuity plans?
Annuity plans are retirement plans which provide a guaranteed* regular income to you during your retirement years. Depending on the type of annuity plan you choose, you can select how you want to invest in the plan and how you would like to receive the benefits.
What are the types of annuity plans?
There are two types of annuity plans available – deferred annuity and immediate annuity. Under a deferred annuity plan, you can pay the premiums over the policy term and then receive the guaranteed* benefits on maturity. Under immediate annuity, you invest a lump sum closer to the maturity of the plan and start receiving the benefits immediately.
Do retirement plans have a life insurance cover?
If you purchase a pension plan that only helps you save for your retirement, you may not be able to avail of a life insurance cover. However, all Tata AIA Life Insurance retirement plans comprise a life insurance cover to protect you and your family.
How much retirement funds do I need?
To understand the amount of retirement funds you need, consider all the basic and major expenses after your retirement, the financial commitments of all your family members, as well as any emergencies such as an illness for which you will need adequate funds.
Can I add riders to my Tata AIA Life Insurance retirement plan?
Yes, you can add one or more of the available riders^ to your Tata AIA Life Insurance retirement plan. Riders provide additional plan benefits and increase your plan coverage.
Can I choose the premium payment term in a retirement plan?
Yes, a retirement plan offers you the option to pay your premiums either as a Single Pay (lump sum) or for a certain number of years, depending on the policy term and as per the policy terms and conditions
What are the premium payment modes in annuity plans?
Most popular Annuity plans offer the following premium payment modes – Annual, Half-yearly, Quarterly, or Monthly mode of payment.
Can I calculate how much premium I should pay for my retirement plan?
Yes, you can calculate the premiums as well as your retirement plan sum assured with the help of our Tata AIA Life Insurance Retirement Calculator.
Do I opt for a regular income plan or a lump sum benefit?
Whether you opt for a regular income plan or a lump sum benefit under your pension plan will depend on your needs. If you have some major expenses to be fulfilled when you retire, you can choose the lump sum payout. Likewise, if you have smaller retirement goals to be met, you can opt for the regular income option.
How do I file a claim on my retirement plan?
To file a claim with us, you can choose any of the following channels to reach out to us.
Email us at: customercare@tataaia.com
Call our helpline number - 1860-266-9966 (local charges apply)
Walk into any of the Tata AIA Life Insurance Company branch offices
Write directly to us at
The Claims Department,
Tata AIA Life Insurance Company Limited
B- Wing, 9th Floor,
I-Think Techno Campus,
Behind TCS, Pokhran Road No.2,
Close to Eastern Express Highway,
Thane (West) 400 607.
IRDA Regn. No. 110
Do I need to file a maturity claim for my retirement plan?
Yes, you will have to file a maturity claim for your retirement plan as the benefits by submitting the necessary documents at any of the Tata AIA Life Insurance offices.
Can a death claim be filed soon after the death of the policyholder?
A death claim should be filed soon after the death of the policyholder, subject to all the documents and certificates being present with the nominee.
What are the documents needed to file a claim?
Please click here to know the list of documents needed for the claim intimation and settlement process.
Disclaimer
*The word Guaranteed, and Guarantee means the annuity payout is fixed at inception of the policy and will be payable for whole of life or till death of the Annuitant(s).
^Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch.
#Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfillment 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 implication mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you
~All Premiums, Charges, and interest payable under the policy are exclusive of applicable taxes, duties, surcharge, cesses or levies which will be entirely borne/ paid by the Policyholder, in addition to the payment of such Premium, charges or interest. Tata AIA Life shall have the right to claim, deduct, adjust and recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy.
Product Option Immediate Life Annuity with Return of Purchase Price is available under PoS as well.
This product is underwritten by Tata AIA Life Insurance Company Ltd. The plan is not a guaranteed issuance plan, and it will be subject to company’s underwriting and acceptance. Insurance cover is available under this product. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.
In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.
L&C/Advt/2022/Nov/2883
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