Top 5 Reasons Why You Need a Pension Plan - Even If You’re Already Saving

There are several people we meet – relatives, friends, colleagues and we end up discussing one of the most interesting topics – investments! Majority of us talk about FDs, stocks, real estate etc, that will help us in retirement planning; however, what we don’t talk about is adding a pension plan to make life simple and stress-free post-retirement. Isn’t it?

We all think the same way, but the more we look into it, the clearer it becomes that investments and a pension plan are two separate things. One helps you build wealth, while the other guarantees that you don’t run out of money when you are no longer working or earning.

How can a pension plan be beneficial in addition to your investments?

When inflation rises, it quietly eats into your savings

As a legacy, we have seen our parents securing their money through bank deposits, but in those days which was probably 20 years ago, the interest was more than enough to cover their monthly expenses. When we evaluate the current situation, medical bills, grocery prices, even electricity - everything has multiplied. Suddenly, what felt like a big sum wasn’t so big anymore.

That’s what happens when inflation hits. A pension, with its regular payouts and fixed annuity rates, helps keep pace and makes sure your lifestyle doesn’t take a hit.

Life span of an individual has increased

These days, it's increasingly common to see people celebrating their 85th or even 90th birthdays — a wonderful milestone emotionally, but what about financially? If we retire at 60, or even at 65, that could mean living more than 25 years without a steady pay check, all while expenses continue to rise. The question is: are we financially prepared for this extended chapter of life?

Most of us plan for a retirement lasting 10 to 15 years — not nearly three decades. A pension plan ensures your income keeps flowing for as long as you live, so you don’t outlive your money.

Markets crash but retirement can be protected

Just when COVID hit India, markets crashed overnight. Imagine if you had retired that year and were depending on your stock portfolio for income. One bad year can throw your entire retirement planning off track. That’s where a pension plan comes in. It may be routine, but it’s steady and predictable, which is exactly what you want when you are retired. When you other investments become adventurous; your pension becomes your calm in the storm.

Family dependency continues

Retirement does not mean a responsibility-free life. Some people still support adult children, others have dependent spouses, or dependents with health issues.

A joint-life pension option ensures that if something happens to you, your spouse continues to receive the income. It’s not just about your peace of mind but your loved ones too.

The most common hesitation - What if I don’t live to use it – well, we have a solution.

The thought of paying premiums and then not being around to enjoy the benefits feels unfair, right? That’s why many plans come with a Return of Premium feature. If you are not there, the money you put in goes back to your family, so nothing is lost.

Balance your investments for financial freedom

Consider your investments to be similar to the construction of a home. Without a pension, you're leaving yourself vulnerable to risks you never anticipated. It's like the lock on the front door. Securing your wealth is just as important as increasing it, particularly when your future independence and comfort are at stake.

This is where a well-crafted pension plan comes in, not to take the place of your investments but as a potent supplement to round out the picture of financial independence.

 Explore RNL Nishchit Pension

RNL Nishchit Pension is built to give you exactly that — certainty. Whether you're looking for lifelong income, joint cover for your spouse, or the peace of mind of a return of premium option, it offers flexibility to match your retirement goals.

Your retirement shouldn't be a question mark. With the right plan, it can be a confident full stop.

RNL Nishchit Pension, a non-linked, non-participating, individual, deferred annuity plan. UN: 121N158V02

In case of Joint life annuities, the payout continues till either of the lives chosen in the policy is alive. ^The word Guaranteed means that annuity payout is fixed at the inception of the policy. The Total Premiums Paid is equal to annualized premium multiplied by premium payment term and is exclusive of GST & other statutory levies. Monthly Income is 8.07% of Yearly Annuity. Please check the prevailing annuity rate at the time of purchasing policy. Reliance Nippon Life Nishchit Pension (UIN: 121N158V02) is A Non-Linked, Non-Participating, Individual, Deferred Annuity Plan. For more details on risk factors, terms and conditions please read Sales Brochure carefully before concluding a sale.

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