We work hard all throughout our lives to provide a seamless life to our loved ones and be able to enjoy our retirement without any financial constraints. For this, it is imperative to start planning for our retirement years while we are young and earning. Moreover, we never know when we might face an unforeseen event and may require a financial backup without any prior information. No one wants that, right? That’s where a retirement plan comes in. Investing in a retirement plan ensures that you do not have to worry about your retired life and fulfil your dreams without any financial constraints.
What is a Retirement Plan?
A retirement plan is one of the best investment plans to have a secure and comfortable life and unwind all your goals and dreams, even when you retire. This is an investment plan wherein you invest your money and build a financial corpus for your retirement. This plan ensures that you are financially secure and provides you with regular income so that you can manage your expenses, even when you retire.
We often face hassle while choosing the ideal retirement plan for us and will ensure that our loved ones or we are secure and face no such financial emergencies when we retire. That’s why we have prepared a comprehensive guide for your better understanding.
Retirement Plans for You to Invest In
- Unit Linked Insurance Plan (ULIP)
Unit Linked Insurance Plan, commonly known as ULIP Plan, is one of the best investment plans for retirement. This investment plan offers dual benefits of investment as well as insurance. In simple words, one part of the premium paid by the investor for the ULIP investment plan is used for providing insurance. The other part of the premium is used for investment in market-related options such as stocks, bonds, shares, equity, etc. Therefore, this investment plan helps in wealth creation as well as provides financial security to the investor.
Benefits of Unit Linked Insurance Plan (ULIP)
- Financial Security
In the long run, investing in a ULIP investment plan provides financial security to the investor and his or her loved ones. Moreover, investing in ULIP will ensure that your retirement period is financially secure and you are at peace of mind.
- Develops the Habit of Saving
One of the key benefits of investing in a ULIP investment plan is that it helps the investor develop a habit of consistent savings in the coming years.
- Tax Benefits
Another key benefit of this investment plan is the tax benefits. The premiums paid by the investor are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The investor can claim upto 1.5 lakhs tax benefits in one financial year. However, tax benefits are according to tax laws, and are subject to change from time to time.
- National Pension Scheme (NPS)
National Pension Scheme (NPS) is also one of the best investment plans for retirement. It is a government-backed retirement plan ideal for creating a financial corpus for your retired life.
Benefits of Investing in National Pension Scheme
- Financial Security
NPS provides financial security to the investor and his family. Investing in this investment plan ensures that the investor faces no financial constraints in his or her retirement and is able to enjoy his life with ease.
- Tax Benefits
Another key benefit of NPS is the tax benefits. The premiums paid by the investor are eligible for tax benefits under 80C of the Income Tax Act. However, tax benefits are as per existing tax laws, and are subject to change from time to time.
Now that we have told you the best retirement investment plans that help you be financially stable and provide regular income during your retired years. When you plan to invest in a retirement investment plan, it is recommended to go for a reliable and reputed insurance provider.
