Although essential, retirement planning could be quite challenging in the early stage of your career. You are young and extremely busy starting off and excelling in your career, starting a family, or settling in a new location. You don’t have the time or feel the need to think about planning for your retirement just yet.

However, time flies so fast, and you will have to think of it then. So, why not start now?

Here’s how Retirement Plans in India help in keeping the financial freedom intact:

• Retirement funds can help you face any unexpected circumstance, be it health issues or wealth worries, in the future.
• Even after retirement, you can financially support your dependents towards their financial needs.
• You can even fulfill your dreams or life goals such as travelling the world, etc.
• With all of this, most importantly, you can still enjoy your financial freedom after you retire.

Not just this, a Retirement Plans helps you safeguard your dependents’ financial future; where in case of the unfortunate demise of the life insured, the nominee can avail the financial benefits of the plan.

Inflation is a big factor you need to consider when you start thinking about planning your retirement. You need to take into account how much will you need in order to maintain the similar lifestyle after retirement.

For example, you currently require Rs. 1 lakh a month to maintain a good lifestyle. 20 years from now, you will have to spend Rs. 3.27 lakh a month to enjoy the same lifestyle, considering constant inflation of 6% during the period.

You may want to use a retirement calculator to know how much money would you need in future for your retirement in India.

While choosing a Retirement Pension Plan, think carefully about the following aspects:

• Investment options available for you
• Current annual earnings and estimated retirement income
• Rates of return-on-investments and compound interest
• Risk and return of various schemes and assets
• At what age and how long from now you wish to retire

Planning for retirement is a long-term goal, and investing early will give you more time to save and invest better, in a manner that will provide you higher pay outs as retirement corpus. Your risk appetite is higher in the early stage of life, and you have more time to make up for any losses incurred over the period.

However, as you move closer to your retirement age, your risk appetite gradually scales down.

Every individual sees and lives life differently. Keeping this in mind, we have designed plans to fulfill your life goals and support your aspirations even after retirement.

Aviva Retirement Pension Plans provide the following benefits:

• Get a guaranteed savings corpus
• Opt for lump sum investment
• Avail tax benefits on premiums paid under section 80C of the Income Tax Act

Moreover, you can choose the time period for which you wish to avail the benefits of the plan. Some of our plans are also designed in a way where, in case of annuitant’s demise, the nominee will avail the benefits till the annuity period is over.

Aviva gives you 7 Annuity options and and helps you plan for your retirement:

1. Life Annuity: An equal annuity is paid in arrears as long as the annuitant survives

2. Annuity Guaranteed for 5 years and life thereafter

3. Annuity Guaranteed for 10 years and life thereafter

4. Annuity Guaranteed for 15 years and life thereafter

5. Annuity for life increasing at 3% per annum simple interest: Life annuity increasing at 3% p.a. is paid in arrears as long as the annuitant survives.

6. Life Annuity with Return of Purchase Price: A level annuity is paid in arrears as long as the annuitant survives and the Purchase Price of the annuity is paid to the nominee in case the annuitant passes away.

7. Joint Life Last Survivor Annuity: An equal annuity or pension is paid in arrears as long as both or either of the two annuitants survives.

Many investors and policy buyers often mistake a retirement investment plan as a means of savings until they are 65. Actually, if you start early and are in for long-term planning, these plans offer whopping benefits.

A Retirement Pension Plan works in two stages:

1) Accumulation stage: The stage when you start and continue to invest in policies, to build a retirement corpus.

• At the start, you choose a pension plan, and the estimated amount you wish to receive upon maturity. This will help you align your policy term to your desired age of retirement.
• Choice of the investment period (Premium Paying Term) – Depending on your lifestyle choices as well as investment and risk appetite, you need to decide the period for which you want to pay the premium for the plan. In case of a lump sum investment, you will be paying the whole amount at once.

2) Vesting age: The age at which your pension plan will start paying out. Your decision to quit your job at an early age will depend a lot on your financial status.

• Once your retirement pension policy matures, you can avail the built corpus based on the annuity options chosen by you.