Benefits of Early Retirement Planning in India
Published On Nov 03, 2021
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In India, majority of people are of the view that in order to be financially stable and independent, one needs to save adequate money. This is because we believe that saving money can help us in having a safe financial future. However, in order to have a protected future and a hassle free financial life, you are required to have a retirement plan. Highlighted below are the advantages of early retirement planning :
1. Increased Returns on Savings
You receive minimal benefits by putting your savings in the bank. Investment options help you in maximizing the profits by providing you with the option of better returns. Retirement plans offer higher returns in comparison to bank savings.
2. Protect Your Assets and Have a Safe Future
To get better retirement income, you do not have to liquidate your assets. By investing in a retirement policy, you don’t need to depend on your assets. Therefore, early retirement planning can help you in having a safe future.
3. Early Planning for Maximum Benefits
You are required to start with retirement planning early in order to reap maximum benefits of your retirement policy. For instance, you must invest in your 20’s because this way you can enhance the plan duration and pay lower premiums.
4. Extend Support to Your Dependents
By having a sturdy insurance plan in hand, you can extend financial support to your dependents. A retirement plan can act as a financial cushion and offer your dependents financial safety. This way you can also ensure that there is no income loss post retirement by doing smart financial planning.
5. Unprecedented Medical Emergencies
With the help of a retirement corpus, you can sustain any kind of unprecedented medical emergencies. If you have a retirement plan in place, you can make use of the accumulated funds as and when needed. You must make a note that with the increase in age, your healthcare expenses are bound to increase.
6. Tax Benefits
One of the major benefits of having an early retirement plan is tax benefits. By investing in feasible insurance policies, you can save some tax. Also, retirement plans help you in diversifying your tax payments.
To have a sustainable financial goal, you are required to go for early retirement planning. As having a retirement plan in place can help you in accomplishing all your financial goals. Before you decide to invest in a retirement plan make sure to carefully analyze all the available options and then zero in on a retirement plan that best fits your budget and requirement.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.