Importance of Pension Plan in India

Post retirement, it is essential that the people remains financially independent. In India, there are many different retirement plans which help to aid the living of a person after he serves his tenure as an employee. There are many factor which highlight the importance of investing in such a pension plan. While it may seem like a far-fetched thing to think about retirement when you are young, you will realize the importance of such a step when you get older. Have a look at the following points to understand why it is so prudent to invest in a good retirement plan.

1. Sole source of regular income: As you retire, you get off from a regular job. While some people might continue to do certain business or a private job,  age might not favor everyone to seek these options. Many times it so happens that a retired person is not able to work and earn regularly. During such times, the amount obtained from your pension plan might be the only source of income which comes on a regular basis.

2. Covering your everyday lifestyle expenses: As stated in the earlier point,  old age causes a person to slow down and it is not easy to earn money to support your lifestyle. However, if you have invested in a good pension plan, then your expenses will be taken care of post your retirement.

3. Payments for medical bills and other health related treatments: There is no denying the fact that in maximum cases, hospital visits increase as a person grows older. Paying your hospital bills, expenses for medicines and treatments etc., can turn out to be a burden if you are retired and sans any regular income. But if you have income coming from a pension plan, then you will not find these hospital visits  a burden on your pocket.

4. Securing your future: Unfortunately in India, recently there have been many cases wherein the children refuse to take care of their parents/ grandparents. In such a scenario the retired parents are left on their own. If they have a good pension plan, then they can get financial security and live an independent life.

5. Lessening the mental stress caused due to budget constraints: Throughout your life, you are used to being employed and earning your own money. However, once you retire, this regular income ceases . This might force you to make serious changes in your spending habits and your overall lifestyle. Such budget constraints can lead to mental stress and affect your health. Thus it is prudent to invest in an pension plan while you are young. That way you will have financial support and you can minimize your stress.

The above points emphasize on the fact that it is highly important to seek out a good retirement plan and invest in it. You can lead a self-sufficient life financially without having to be dependent on friends or relatives. You can choose the best suited options from many pension plans in India

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Sanjeeb was born with six toes on each foot. The extra toes were removed before he was a year old, robbing him of any super-powers and ending his crime fighting careers before it even began. Unable to battle the forces of evil, he instead work as a professional in Digital Marketing arena, currently living in Kolkata, India. Founded with the purpose to share his experience and interesting tech news. Connect with him on