What are Retirement Plans?
Retirement Plans are plans for retiring financially well, not having to bother where one will secure resources to cater for their needs after retiring and not being paid a salary anymore.It contains a list of retirement plans, especially the various types of plans an employer can offer to his/her employees.
Pension plans are basic plans which enable an individual to start contributing a sum of money periodically, so that it can compound and be in a position to pay a pension to an individual who has retired and has no other source of income other than the pension.
Pensions plans are designed with regard to inflation, thus, you do not have to bother about your quality of living or reducing your expenses so long you are alive. These are meant to provide you with the kind of life you are living now, so the arithmetic is done suited to this, in order to help you save and invest for this kind of life.
Annuity plans, therefore, guarantee you full income for your entire life. It is same to the pension plan, but when one ceases to earn an income or reach the retirement age, he or she can invest the total pension amount for this particular annuity plan. This plan then safeguards that for the terms and conditions agreed upon you receive monthly payments for the rest of your life.
Like all other investment options, annuity plans have no entries, but are categorized on the basis of whether you would prefer to receive the annuity now, or in the future.
Immediate annuity: This plan helps make certain that the:first, you begin to receive monthly payment as soon as you purchase this plan. This plan is ideal for a person who perhaps just retired and can hence afford to buy this plan whose cost is normally met from the retirement money.
Delayed annuity: When you have reached a certain age, you will start receiving the payouts without having to worry about choosing a plan at that point. It is similar to a retirement fund, where you have time to accumulate the sum, over several years.
If you are plannings to set up a retirement fund, our team at Policyinserv will assist in ensuring you have understood all the terms of the contract correctly.
