3 Ways in Which Pension Plans Change Your Perception of Old Age

retirement-6206754 Has the thought of raiding a bank crossed your mind, ever? Be honest, be very honest. If you have successfully answered, positively, without hesitation, then the thought of old age was probably the motivation for answering this. Most of us have an image of kicking-up our feet and enjoying a long holiday, in the finer years of our life. If you thought that this was the reality can could only be achieved by millionaires, then think again. Perish the thought of robbing a bank, when you can reap the benefits of your hard-earned living, at old age. Pension plans are investments that can be reaped after allocating money towards these investments, over a long period of time.

Changing the way you view your life- Pension Plans For most of us, the thought of eking out a living in the finer years of our life, means living on a pension. Yet, pension earners were synonymous with government and bank employees or those working with public sector undertakings. The trend of working with privately-owned companies kicked off in the recent decades, without successfully enabling pension schemes for employees. In today’s world, with rising inflationary trends, it may seem impossible ‘live like a king’, at an old age. Yet, it is possible to have all the benefits in life without pinching on the important investments. In order to suffice our needs at an old age, we often think of dipping into our savings and investments.

Here’s a look at three critical ways in which pension plans can help you out at an old age:

1. Earning money without working: Pension Plans are secured after investing over a period of time towards gaining a good income that will sustain your lifestyle at an old age. Estimating this lifestyle can be difficult, yet there are schemes that have predetermined income figures based on estimated inflation rates.

2. Sustaining a lifestyle, independently: Most of us imagine that our children will support when the need comes. But, with pension, we do not need to consider such eventualities. Perish the thought of depending on your children’s income or dipping into your inheritance. With the provision of secured income coming in monthly or quarterly, independence at old age is possible.

3. Changing your perception of old age:
As wine grows better with age, it’s possible to live a dignified and steady life, with a secured pension plan. The thought of having a secured channel of income and security, can trigger the realisation of our dreams. It is possible to have a great lifestyle and fulfil our dreams at any stage in life. So, is retirement planning, the ultimate solution to happiness? Consider it so, for the hard-working individual, it is a reality that can be achieved, without any hesitation. So, if your definition of happiness is having a worry-free life at an old age, without delving into borrowing or scrimping on essentials, then begin your future planning today. Go for a scheme that begins at a young age, and provides significantly more than your current spending. It would be advisable to go for a scheme that gives more than your current income in order for you to sustain your lifestyle, comfortably in the future.

About Author:

HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.