What should I look for in a retirement plan?

A perfect retirement plan will be the one that provides old-age security and safeguards the spouse in an unfortunate event with joint-life benefit. It is important to have pension schemes that not only extend benefit to the spouse after the death of the annuitant or pensioner, but also offer equal benefit to what the annuitant used to receive. It is also important to know how much corpus is required to be allocated in a pension scheme to lead a better lifestyle at old age or ensure adequate income for the spouse. The quantum of corpus required to get a certain annuity amount every month can be arrived at using various calculators on the websites of insurers. Bajaj Allianz Life Insurance website has such a calculator where one can find out such details. Immediate annuity schemes today come with more than just pension. For example, these plans also give an option to get return of purchase price after the annuitant’s death. So, take these things into consideration while buying a retirement or pension plan.

OLMdesk@outlookindia.com