10 Frequently Asked Questions About Retirement or Pension Plans

Considering investing in a retirement or pension plan? Do you have multiple concerns in mind? If so, make sure you consider your basic requirements regarding the type of retirement or pension plan you want in the first place. Once you are clear about what you are looking for in your retirement or pension plan, it would be easy for you to make an informed choice. 

Keeping your confusion regarding retirement or pension plans in mind, we have listed a few frequently asked questions that may have come across your mind as well. Make sure you go through all the questions to have a better understanding of the retirement or pension plan concepts. 

10 Frequently Asked Questions About Retirement or Pension Plans

The list includes:

• What age is considered ideal for early retirement?

In India, there is no specified age for early retirement, however, the age of 45 years to 50 years is considered favourable. 

• How can 35 to 40-year-olds choose the best retirement plan?

People aged between 35 and 40 years can choose the best retirement plan by keeping their specific financial needs in mind. Moreover, thorough research on investment products and considering different suitable products after conducting proper objective analysis is a must before making an investment.

• How much money should I be saving every month for retirement?

The amount of monthly savings varies on the basic financial needs of the buyer. However, as per the recommendation of financial advisors, people should save around 15% of their income every month for retirement.

• Will my spouse automatically become the beneficiary of the retirement account?

No! You will have to nominate your spouse to receive retirement benefits in your absence.

• Is insurance an important part of retirement planning?

Yes! Insurance will help your family to lead a peaceful life without any financial concerns if you are no longer there to provide it. 

• What does vesting age mean?

Vesting age or vesting date is the age after which you will begin receiving your monthly pension or gain freedom to withdraw the money from the plan.

• Can I change the nominee of the plan?

Yes! Change of the policy nominee can be done at any time. 

• How can I easily pay the pension plan premium?

If interested, you can choose to auto-debit the premiums from your savings account. Nonetheless, you can also opt for online payment of premiums through your debit card, credit card or payment wallet.

• Can I along with my spouse contribute to the same retirement account?

Yes! The government of India gives permission to all central government pensioners to open a joint account with their spouses.

•  What if I become disabled before the retirement age?

On saving a significant amount of your income for retirement you may not face issues after retirement. Even if you become disabled and fail to contribute to retirement plans, the latter will multiply your savings. You can even plan to invest in pension plans that are specifically designed for people with disabilities.

Also Read: 

How Do I Create A Retirement Plan?

Planning For Your Retirement? Consider These Factors NOW

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.