The average life expectancy of Indians has nearly doubled from 31 years in 1947[1]to almost 70 years today, thanks to the advancements in healthcare facilities. While our increased lifespan certainly calls for celebrations, it is equally vital to ensure a quality of life since people will be living longer after retirement. But according to a series of studies conducted by the World Economic Forum, on average, retirees are set to outlive their retirement savings by 8-20 years.
Importance of planning for retirement
It becomes essential to start retirement planning as early as possible. Some of the biggest worries for retiring individuals are irregularity of income, how to beat inflation and rising medical expenses. Additionally, some people might want to retire earlier than the expected retirement age while some may have dreams and aspirations, which they might want to fulfil once they retire. Factors such as nuclear families and children migrating overseas for job opportunities have made financial independence an indispensable part of retirement life.All these make it essential for individuals and families to have a dependable financial plan in place to ensure a stress-free retired life.
Offerings of ICICI Prudential Life Insurance for retirement planning
ICICI Prudential Life Insurance offers a range of retirement products to help individuals lead a financially independent retired life. ICICI Pru Guaranteed Pension Planprovides customers the flexibility to choose between ‘Immediate and Deferred’ annuity. Customers on the cusp of retirement, wanting an option to receive immediate regular income, can opt for the immediate annuity variant of this product by paying a one-time premium. Those whose retirement is still sometime away can opt for the ‘deferred annuity’ variant that provides the flexibility to receive income at a later point. For instance, customers who still have a few years left for retirement; have the option to defer the start of the income for a maximum period of 10 years. Some notable features are the early return of purchase price option and the return of the premium amount on diagnosis of specific critical illnesses and permanent disability.
Inflation is an uncontrollable factor that hampers retirement planning even for those with the best laid-out plans. While annuity products guarantee a fixed lifelong income, it is possible to combine multiple products or their options to ensure that the income amount increases at certain periodic intervals. This way, the impact of inflation can be minimised during the golden phase of one’s life.
ICICI Prudential Life’s innovative retirement solution has been developed by combining two variants of the popular ‘ICICI Pru Guaranteed Pension Plan’. It provides customers with increasing regular lifelong income that doubles after five years and triples after the 11th year, thereby shielding them against the rising cost of living.
[1]https://timesofindia.indiatimes.com/sa-aiyar/swaminomics/our-greatest-achievement-longer-lives/articleshow/2291641.cms
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