Life Goals Loading…

Get Life Goals Back-up Plan

Have us call you

Please enter a Name
Please enter a Mobile No.
Please select a option
Please select a option

Thanks for sharing your details, A Sales representative from
Bajaj Allianz Life will contact you shortly.

Dear Customer, we request you to connect with us in our next business working hours, (Monday to Saturday 24*6) Thank you, Have a great day ahead.

3 Signs You Need To Update Your Retirement Planning Strategy

How to update your retirement planning strategy

3 Signs You Need To Update Your Retirement Planning Strategy


calender-blue

June 25, 2020

By : Bajaj Allianz Life

After a lifetime of work, retirement is a time Indians look forward to relaxing. People prefer to spend their post-retirement life with children and family. Collective living reduces the consumption of financial resources at an individual level, which is often the motivation for people to ignore retirement planning. However, with the rise in the number of nuclear families, retirement planning has become extremely important. Retirement planning entails setting aside resources during one’s working life to achieve financial independence by the age of retirement. To build a corpus that could last 20-25 years, one needs to save regularly and invest in long-term financial products. Long-term investments build wealth over several years and help preserve the value of the savings.

Considering inflation and the resulting fall in the value of money over time, one needs an amount equivalent to 80%-90% of his/her total income during retirement.

 

How to start retirement planning?

 

The earlier you start planning for retirement the better. It takes time to accumulate sufficient wealth for stress-free retirement life. A number of retirement-focused financial products are available in the market. It is important to formulate a retirement goal before investing in any retirement plan. Everyone has different income and retirement goals. One should use a retirement calculator to ascertain the amount one needs to save for retirement. A retirement calculator will give a clear picture of the resources you need to commit to achieve retirement goals. Prepare a comprehensive retirement investment plan once you have a personalised retirement goal. A retirement investment plan consists of investments in multiple products all focused on achieving retirement goals. A pension plan is a base on which a comprehensive retirement plan may be built. New age unit-linked insurance plans have emerged as a popular option for retirement planning. Investing in retirement-focused ULIPs may help you build a substantial corpus by the time you retire.

Contributing towards a retirement investment plan diligently will most likely help you achieve retirement goals. However, market-linked products can never provide cent percent assurance. As an investor, you should continuously monitor your retirement corpus and look for shortcomings. Look for certain signs that will tell about the need to tinker with your retirement planning strategy.

1. Not enough returns

Only consistent returns over several years can help you achieve retirement goals. Retirement plans invest the money either in bonds or in equities. Government and corporate bonds are a preferred choice as they are relatively safe when compared to equities. However, stability comes at a cost. The returns from bond investments can be low which leads to slower growth of the retirement corpus. If the value of your portfolio is not growing at an acceptable rate, it is time to modify allocations. One can shift a part of the investments to equities. If you have invested in a ULIP, you can utilise the fund switching option to move some funds to equities. Equities may give better returns and are relatively safe over the long term. One can also opt for certain government-run schemes that offer relatively higher returns. Conduct thorough research before making any changes to the portfolio. Take into consideration the performance of the fund, credibility of the provider and the inflation before finalising an investment option.

2. Lack of sufficient savings

Once people start putting aside money for retirement with a goal in mind, they realise they have not been saving enough. Savings fall short if you do not put aside sufficient funds or if you start late. If you start late, it will be difficult to build a retirement corpus even if you save a substantial portion of your income regularly. The best way to mitigate the risk of a savings crunch is to start early. If you start investing in a retirement investment plan when you are young, even a small amount will compound and lead to a large corpus at retirement.

3. Increase in expenses

Most people start retirement planning with the assumption that the expenses will reduce after retirement. The expenses reduce to an extent but the gap between pre and post-retirement expenses is not very large. The correct way of retirement planning is to take the upper estimate of expenses and plan accordingly. Major expenditure components should be taken into consideration and a plan should be formulated. For instance, medical expenses rise manifold, which can be managed by having an adequate health cover. Health insurance will reduce the pressure on your retirement corpus. Many other expenses remain the same or increase after retirement. Investing in a pension scheme may help you achieve financial freedom after retirement. Retirement plans help in ensuring that you have sufficient funds to live a fulfilling and stress-free life after retirement.

 

Conclusion

 

No investment plan could go wrong if you have planned your investment well, which is why you should actively monitor your investments for retirement or take active advice from subject matter experts. A hands-on approach helps in early detection of shortcomings and necessary modifications can be done on time. Use a retirement calculator to get a clear idea of your needs, start early, save regularly and invest patiently to accumulate adequate funds for retirement.

Bajaj Allianz Life Videos

Video Icon

Flexi Income Goal – Variants, Features, Benefits Explained

Video Icon

Why Choose Bajaj Allianz Life To Help Get Your #LifeGoalsDone?

Video Icon

#DostiWithDad - Happy Father's Day | Bajaj Allianz Life | Life Goals Done

Video Icon

Covid-19 Survivor Story | Bajaj Allianz Life Smart Protect Goal | Bajaj Allianz Life

Video Icon

Lage Raho India - Keep getting your #LifeGoalsDone

Video Icon

Don’t Let COVID-19 Lockdown Get in The Way of Your #LifeGoals

Video Icon

Coronavirus (COVID-19) Advisory Video #DooriHaiZaroori

Video Icon

Coronavirus COVID-19 impact on markets - CIO Commentary | #KeepCalmStayInvested

Video Icon

Bajaj Allianz Life Leadership Team | #PlankForIndia

Our MD & CEO, Tarun Chugh launches #PlankForIndia campaign and planks with Sanjiv Bajaj MD & CEO, Bajaj Finserv and Chairman Bajaj Allianz Life & the rest of the group leadership team.

Video Icon

#PlankForIndia | Bajaj Allianz Life

Bajaj Allianz Life will contribute to the training and development of India's future sports stars. Come together to Plank for Good Health, PlankforIndia.

Video Icon

#PehlaDinPehlaResolution

#PehlaDinPehlaResolution | Happy New Year | Smart Protect Goal | Bajaj Allianz Life

Video Icon

Bajaj Allianz Life Goal Assure

Bajaj Allianz Life Goal Assure - A ULIP Investment Plan To Achieve Life Goals

Video Icon

Valentine's Day

Valentine's Day

Video Icon

Bajaj Allianz Health Care Goal

A Comprehensive Health Insurance Plan with Critical Illness Cover | Bajaj Allianz Life Health Care Goal

Video Icon

#36SecPlankChallenge video

Promote Healthy Living for a Better Tomorrow with our #36SecPlankChallenge

Contact Us

Bajaj Allianz Life Insurance Company Ltd.

Bajaj Allianz House, Airport Road, Yerawada, Pune - 411 006, Maharashtra

Tel No: 020-66026773

Fax No: 020-66026789

Branch Visit Timings:

Weekdays - 9:00 AM to 3:30 PM

Saturday - 9:00 AM to 12:00 noon

Customer Care Helpline:

1800-209-7272

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

For NRI: +91 20 67871700 (Call charges apply)

Monday to Saturday 9.00 AM to 7.00 PM (IST)

Sales Enquiry Helpline:

1800-209-4040

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

For NRI: +91 20 67688888 (Call charges apply)

Monday to Saturday: 9:00 AM to 7:00 PM (IST)