How to plan a financially secured retirement?
When retirement is nearing, the thoughts of financial challenges can be overwhelming. Having financial security during retirement simply means having the financial means to take care of daily expenses and emergencies without compromising on lifestyle and quality of life. Moving into retirement phase usually means the loss of a stable income as one stops working. Therefore, careful planning is necessary to achieve financial security so that you can enjoy a carefree retirement. So, how to achieve financial security and remain free from worries at the time of retirement? A highly recommended way is to opt for a retirement plans. How does it work? Here is an article that attempts to understand the functions and benefits of retirement planning.
What is a retirement plan? In an article published by The Straits Times in the year 2021, it was stated that Singapore is expecting more market volatility. With constant swings in the market, the cost of living can be hugely affected. As the trends in Singapore shows instability in the market, it is difficult to predict the cost of living in the future. This calls for the need of retirement plans which can provide protections against the market volatility. Retirement plans are designed in a way that helps to even out the markets uncertainties and provide a stable monthly income after a certain age as defined by the insurance terms. The payout age starts from age 50 for most of the plans offered. However, it is advisable to check with the preferred insurance company to know the age limits specified by their terms.
What are the key benefits of a premium retirement plan? Having retirement plans plan can bring great advantages that will make your future safe and free from worries. Here are some of the highlighted advantages of retirement plans that are mostly available with the plans available in the market: 1. A steady monthly income: One of the biggest benefit of retirement plans is the guaranteed monthly income plus a non-guaranteed portion that can potentially increase in value depending on fund’s performance. 2. Customizable payouts: With premium retirement plans, payouts period can be customized according to needs. The insured can choose when to start receiving payouts, or save the payouts to grow his/her retirement funds and withdraw lump-sum payouts in the future. 3. Accident coverage: Another advantage of retirement plans is that most of the retirement plans provide coverage for accidental disability. In such cases, the insured receives additional monthly income plus enjoy waiver of all future premiums. This way, a premium retirement plan ensures optimum security during the thick and thins of time. 4. Family protection: In the event of death of the insured, the payout brings protection to the family. Furthermore, the policy can be transferred to the appointed spouse.
Concluding lines The smartest way to plan a retirement is to plan it right away. With retirement plans offering a range of benefits, it is possible to live a retired life free from worries of cash crunch. The above mentioned benefits are general benefits offered by premium retirement plans. However, it is advisable to check with the preferred insurance company to know the benefits specific to them.
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