How to Save for Retirement?
The best way to begin saving for retirement would be to find out the life style that you wish to lead after retirement. This can help eliminate one of the unknown factors in retirement planning. The other parameters that you must know are the inflation rate and the rate at which your current savings will appreciate.
The second factor that you need to determine is how much to save on a monthly basis. This will depend on your current income and expense. Experts plug the savings rate at 15% of your income. Try to keep your savings around this. For more help in this regard, you can find a number of online retirement calculators that will help you arrive at the approximate financial requirement post retirement.
- Metlife offers two pension plans: Met Deferred Monthly Income Plan, Met Monthly Income Plan
- HDFC has introduced a new immediate annuity plan for the late starters. This is a one-time investment which guarantees steady income for the rest of your life.
- Life Insurance Corporation of India (LIC) has been offering the Jeevan Akshaya which can be purchased by paying a one-time lump sum amount. The salient features of this plan include incentives for high purchase price.
- ICICI Prudential Life Insurance also has joined the band wagon in offering attractive plans like ICICI Pru Immediate Annuity.
Real Estate: Remember, you cannot sell the house that you are living in after your retirement. Therefore, investing in a second property can make sense, though the two properties ideally should be in two different cities or localities. Even the rental income from one of the properties can fund your retired life.
Gold Schemes: Investing in physical gold is fast being replaced by gold schemes and gold bonds which are soon to be issued by Government of India. This eliminates the security risk associated with the physical gold. These bonds can be converted to cash or physical gold on maturity.