Retirement comes with an exemption and a fear of later life with no source of income. This concept is being continuously modified where people are seeking for voluntary retirement as they cross 40. However, inadequacy of the financial plans put a question mark over post retirement life. Very poor amount of people including women nods positively that they possess a strong retirement plans. Regardless of this poor quantity, one must understand the importance and need for these pension plans. Let’s take a quick look how pension plans can keep you self-contained post your retirement.
Investing in pension plan manifests to be a smarter choice, regardless of your age. One must need to realize the importance of this aspect of financial planning. As commonly known, post 40 human body starts degrading and needs periodic medication to stay fit. On the other hand, thanks to improved medical and healthcare services that our generation is living longer than the previous ones. One must need to gather enough funds to gratify these medical needs in later years of life. Employer pension scheme and government funded pension plans cannot gratify this huge income need post retirement. The poor funds obtained from these pension schemes are not sufficient to maintain the later lifestyle; medication remains out of question.
Many times, people don’t want to depend on their children, relatives or family after their retirement. Being self-dependent, they just want to get their lives self-funded after kipping down from work. Nevertheless, to maintain the social security, retirees should go for pension plans and meet their regular income after retirement.
Being an integral contributor to the family, retirees always wish to help or financially contribute to their children, grandchildren or family. Peeping through the current emerging trend retirees are exploring independent venture after kipping down from work and to back up all these they should be financially self-contained.
Moreover, post retirement phase is considered to be the resting time for retirees. People usually fork up all the responsibilities to others and follow some hobbies or go on a long vacation. These hobbies and international holidays need heavy funding.
Retirement is not just getting free from work responsibilities but a phase where you need to manifest yourself as self-dependent or self-reliant. Having gone through the above important points, pension seems to be an essential financial planning that one needs to do regardless of age.