Why Should You Consider a Retirement Plan in India in 2023?

A retirement plan can help you accumulate enough funds throughout your working years to meet your needs during your post-retirement period. As you keep investing in the plan, the funds accumulated in it grow. Thus, your retirement savings grows, thereby, providing you with a major corpus after you retire. Over the years, the importance of retirement planning has continued to increase. So, here are the reasons why you should consider a pension plan in India in 2023. 

You Can't Work Always

Practically, it's not possible to work till the day of your life. As we age, poor health reduces our ability to work. When you can't work anymore, you can benefit from the regular source of income ensured by a pension plan. The investments that you make in the plan over your working years will pay off in your golden years. 

Rising Inflation

The rate of inflation in India is 4.95% in 2023 and is expected to be around 4% by 2028. Inflation leads to a rise in all sorts of expenses that you can think of. Now consider the number of years after which you expect to retire. Imagine by that time, prices would go up by how much extent, being subject to constantly rising inflation.

Therefore, you need to start building a significant corpus from now on so that by the time you retire, you have enough savings to maintain the same quality of your lifestyle despite the increase in living costs. Consider using a pension calculator to know how much you should save based on the number of years after which you plan to retire. 

You Need to Save for Medical Emergencies

With age, we become increasingly prone to contracting or developing health problems. Age does not just impact your health but your money too. Medical expenses are among the most recurring costs after retirement. In case you don't have a senior plan, it would be more important for you to buy a pension plan. A medical emergency can cost a lot, mainly in your later years. A retirement scheme can help you manage such emergencies without financial constraints.  

You May Have Things to Tick Off Your Bucket List

You may have made several compromises since you were a child. These could be not making the most desired travel plans or following all your dreams. But you can fulfil them after retirement if you have planned for this phase in advance by investing in a good retirement plan. 

You'd Like to Stay Financially Independent

As long as you are financially independent, you won't be a burden or big responsibility for your children after you retire. Thus, you'll have mental peace and your children will be satisfied to see you financially secure. 

You Can Help Your Loved Ones Too

A retirement plan can even allow you to support your loved ones during their times of financial crisis if you build quite a significant corpus. 

Go ahead and use a pension calculator to estimate how much you should invest in a retirement scheme to sign off gracefully and start saving for your golden years.