Does planning for retirement matters?
No doubt, we all spend a considerable time to plan our vacations. It is much before the vacation season arrives we are all set with tickets and our belongings we are going to carry with us to enjoy holidays. Isn’t it imperative that we plan for our retirement too?
Ask individuals about their vacation plans during their old age, they do not have a clue. Retirement planning is one of the last things in their mind. They do not mind growing old without any thought of how they are going to fulfill their basic necessities during old age, planning for vacations is a far-off matter to think about.
Most of us rely on our provident fund, but is that enough? Only a small percentage of the salary is saved as a provident fund. Moreover, this amount won’t suffice your needs in present, how would it be sufficient after 10 or 20 years when inflation rate would increase the cost of living by many folds?
Plan right now. Consider your every need after saving an amount for your pension plan. Provident fund is available to those who have accumulated it through their salary based jobs, what about those who are self employed or running a business?
Pension plan, a kind of insurance plan helps you to focus on savings and accumulate interest on it. It also helps you to plan for unexpected and unfortunate events. In other words, it provides you investment opportunity as well as insurance.
We all have different needs and priorities. Pension plans are designed keeping our different types of requirements in the view. Experts suggest, the earlier you invest in a pension plan, better are the returns. You get a considerable time period to accumulate interest on your amount as well as there is comparatively lower pressure on you to save. However, many people invest in their middle age or when they are on the verge of retirement. Pension plans provide solution and help you accomplish your retirement goals irrespective of your age.
What you need is only planning and investing for your retirement. It helps you to not just invest your savings in a planned manner but also secures your retired life in an intended way.