Retirement income planning is the process of setting aside money from your savings for use after retiring from your work. If you want to get a constant income after retirement and live a descent life, it is important to save now and to take a retirement savings account. This article highlights the process of retirement income planning.
Retirement savings options
Investment banks and insurance companies provide various retirement savings options and retirement advice which you can utilise to plan for your future beyond retirement age.
Pension fund arrangement Life insurance companies offer pension fund arrangement where you contribute to the pension poll through your employer or as an individual and you access your money on retirement. The pension fund manager invests the contributions on your behalf up until your retirement age where you can access the money and the accumulated interest. Life insurance products Life insurance products like life endowment policy and life trust account gives you the option to claim back your money on the maturity date. This policy pays out a lump sum amount to your beneficiaries if you die during the term of the policy or alternatively, the money is paid back if you live beyond the policy maturity date. This provides a source of retirement funds if you match the maturity date of the policy with your years of retirement. Personal investments Personal savings and investments are whereby you open a savings account with a bank or with any investment institution and set aside funds for future use. You can open a fixed-term account with the option to renew up until your retirement age. Another option for long-term investment is to buy stocks where you can enjoy dividend payouts. You can also sell the stocks after retirement.
Business investments Besides opening a normal savings account and retirement insurance policy as well as taking up a part-time job after retirement, you can invest in other businesses which you can run after retirement.
Why planning for retirement
To get constant income after retirement
If you plan and invest now for your retirement, you will be able to live a decent life after retirement.
Source of income Retirement packages like a pension account are a good source of retirement money to cover your basic expenses such as food, entertainment, medical and accommodation.