I I am 55 years old and planning to take voluntary retirement very soon. How do I best evaluate insurance policies to ensure I am getting the best value for money while planning for retirement?
Name withheld on request
Planning for your retirement early and building up a corpus is an important step towards securing your financial future and ensuring a comfortable retirement. There are two major risks that need to be considered when planning for retirement – guarantee risk and longevity risk. Guarantee risk refers to the risk of declining income later in life, while longevity risk is the risk of exhausting your savings. One way to address these risks is to consider an annuity product as part of your retirement plan. An annuity provides regular, guaranteed income for life and the option of continuing the income stream for your spouse in the event of your death.
One investment strategy for potential growth in wealth over time is to allocate a portion of your money to equity investments. With this approach, you can make systematic withdrawals from your equity holdings, thereby reducing your risk of significant losses as well as potentially benefiting from market gains. You can also ensure that you have a balanced and diversified portfolio. This enables you to manage risk and optimize returns over the long term. Having said that, as we always mention – consider your investment goals, your risk tolerance/ability to manage risk and your overall financial position before making any investment decision. You can consult a financial advisor to help you make an informed decision about your financial objectives.
Sameer Joshi – Chief Agency Officer, Bajaj Allianz Life Insurance.
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