Check Out These Options Before Buying Retirement Plans!
BENGALURU: India is a country where the majority of Indian population comprises of elderly people and most of them are deprived of common necessities and being left by their children they are not taken care of. Most of the elderly can be seen lying on the pavements in utterly bad condition or living in shelters and old age homes.
Retiring is a very dreaded thing in one’s life and most of the people don’t take it seriously while they are young, healthy and wise with lot of financial options at their desk. Making retirement plans has become a necessity in today’s world and people should make it a point to choose the best retirement plan available to get themselves secured in their old age and when they have no source of income.
In the financial market, there are many attractive retirement plans available but the whole point is to choose them intelligently and looking at all other perspective and prospects. So what’s the best pension plan or investment plan for your retirement? Retirement planning is a long process with benefits at the end.
Currently Reliance Mutual Fund got the government’s approval to launch a pension plan and already Franklin India Pension Fund and UTI Retirement Benefit Pension Fund are existing; and these two firms invest up to 40 percent in equities and the rest in fixed income instruments. The scheme with which Reliance is coming up has an exit load of one percent if the units are redeemed before the age of 60 years and additionally it comes with a lock-in of 5 years.
As reported by Rediff, as per the expert views, equity-oriented pension plans are likely to outpass debt-oriented ones in the long run.
“The equity option is ideal for those starting their retirement planning at a relatively young age. However, you should take this option only if you have the required discipline to stay invested for the long term,” said Hemant Rustagi, chief executive officer, WiseInvest Advisors.
“We intend to create wealth over the long term. The equity-oriented plan will be run like a balanced fund. It will be a diversified portfolio with 65-75 percent in large caps and the remaining in quality mid caps,” said Sunil Singhania, chief information officer, equity, Reliance Mutual Fund.
Depending only on Provident Fund, Public Provident Fund, or Employees Provident Fund for your future retirement plans can be way too risky to think that you can live happily beyond retirement. Chose pension plans with an equity component in it.
Those in their 50s, Reliance MF’s Income Generation Plan or other plans that invest between five percent and 30 percent in equities and between 70 percent and 95 percent in debt and money market securities are best option to choose from.
The good part included in this plan is that investors can switch from a Wealth Creation Plan to an Income Generation Plan at anytime and without worrying to pay any extra exit amount.
Going by the expert views, who want to invest in debt-oriented plan, for them Franklin India Pension Fund or UTI Retirement Benefit Pension Fund would be beneficial as it comes with a 15 year record giving low double-digit returns for a 10 year period.
