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How to Invest in Retirement & Pension plans in India?

January 25, 2011

NRI’s – non resident Indians and PIO – person of India origin, and many foreigners who want to settle down in India to share in the economic growth, are looking at possible retirement benefits that they can enjoy after their term is over. If you are young and an earning individual, there are several attractive plans you can avail of that can ensure you mange a lifestyle similar to the one you are used to now. The primary need of a retirement benefit is to keep maintaining the same lifestyle and live comfortably in future.

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Live life on your own terms

Among the many retirement plans that are much sought after, the Reliance Retirement Plan is one of them. It will ensure that you keep earning reasonably good money once you hang up your boots. You can live life on your own terms even after retiring from your work place where you could have earned a fat salary. Even though you will not enjoy the perks that went with the cushy job, you can still maintain a similar standard of living.

You can even take holidays with your family or spouse like you did when they were paid for by the company you worked for. You can even start a new business of your own after retirement if you have lined up a good and effective plan when you were young with years of employment ahead of you. Many people in India have gone into businesses or started their dream ventures as soon as they retired from service.

To do that, you will need money later on in your life which can provide the seed capital for a start up venture to realize your long cherished dream of financial independence. To make your old age satisfying and golden, the retire plan offered by Reliance offers a guaranteed return on your investment, additional premium payment facilities, vesting age choices between 45 to 85, tax free commutation and tax deductions for premiums paid.

The main reason for the rise in so many retirement benefit options in India is because of a breakdown of the joint family system.

More nuclear families

Old parents, after their retirement from service, do not want to depend on their children to look after them. Instead, they are trying all possible avenues to ensure that they can enjoy a reasonably comfortable lifestyle after they retire from service. With more and younger people going in for nuclear families, the situation will leave little hope for elderly people 10 or 20 years later to be looked after by their children. Living costs are going up along with medical care which requires families to have considerable money after they retire from service.

The situation is similar in middle India as well with second rung cities coming into focus all of a sudden. Many IT companies are also locating to smaller cities to tap the local work force. In addition to the changing scenario, the elderly people these days want to maintain an independent lifestyle which would not hinder the set-ups of their children. Children are also re-locating elsewhere and they do not generally want to come back to their place of birth.

The need for a good retirement policy in India has become acute as old people are living into their late 80’s and 90’s these days.

A longer span of life requires a comfortable bank balance and a regular income well into their old age to maintain a good lifestyle. People are also not willing to cut down on their incomes or pair down their lifestyles anymore. On the contrary, they are looking for ways and means for increasing their income to keep up with the rising living costs.


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