Take a fresh look at your lifestyle.

Are You Retirement-Ready?

Steps to Invest Right Today for a Safer Tomorrow!


After a lifetime of hard work to build a secure future for your family, you may have dreams for your retirement years. You need to plan well to make those dreams come true. Inflation can erode the value of your savings, and this will continue after your income stops too. You need to estimate the amount you will need to lead a comfortable life and make the right investments for wealth creation. These plans have become especially important with the continuing COVID-19 pandemic, where unexpected changes have led to financial instability for many. With investments that help in building a stable corpus by your side, you can be better prepared to face the future no matter what situation comes your way.

Here are some retirement plans that can help you build a sizable corpus to last your retirement years and support you in emergencies.

Unit Linked Insurance Plans (ULIPs)

By now, you might have purchased a term insurance plan to ensure financial protection for your loved ones. But, with a ULIP, you will have the added advantage of growing your savings for your retirement years. Part of the premium you pay towards a ULIP is invested in an equity-debt fund mix, as per your risk appetite. Your returns will be market-linked and paid to you on maturity. ULIPs also provide tax benefits under Section 80C of the IT Act, 1961.

Guaranteed Income Plans

Guaranteed income plans, as the name implies, are investment tools that provide you with life insurance as well as regular guaranteed payouts. Frequency and amount of these payouts can be determined by you at the time of plan purchase. Some guaranteed income plans, like Edelweiss Tokio Life’s Premier Guaranteed Income, also offer riders such as Payor Waiver Benefit Rider, Critical Illness Rider, Hospital Cash Benefit Rider and more so you can customise your plan completely to your needs! Such plans ensure you have a regular second income no matter what the circumstances.

Pension Plans

There are many types of pension plans, where you pay a premium to get a guaranteed income after a certain period. For instance, in a life annuity plan, you pay premiums for a certain period and then get income for your lifetime. In the event of an unforeseen situation, the pension will be given to your spouse. An example of such a plan is the Edelweiss Tokio Life – Saral Pension Plan, where you can choose the annuity mode and even surrender the policy if you are diagnosed with a critical illness.

You can also choose a deferred annuity plan, where you invest money regularly throughout the years and receive pay-outs after retirement when the invested money has accrued interest.

National Pension Scheme (NPS)

The NPS is a long-term, government-backed investment plan. In the active choice, 50% of your contribution is put into equity investments, and the rest is in corporate and government bonds. If you choose the auto mode, your contributions will be invested in assets based on your age. At 60 years of age, you can withdraw up to 60% of your funds, and 40% must be retained to receive regular pensions. Moreover, the NPS Tier-I account offers tax benefits under Section 80CCD. You can also change your fund manager if you are not pleased with the fund’s performance.

It is important to start retirement planning as early as possible. Keep in mind your lifestyle preferences while calculating your retirement corpus and make investments accordingly. A flexible and balanced portfolio will help you lead a comfortable and stress-free life. But the sooner you start, the more your nest will grow! That is why we recommend contacting financial experts at Edelweiss Tokio Life Insurance so you can begin your investment journey with the right plans for your goals.

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