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Retirement Planning – An Option Today, A Necessity For Your Future !
A retirement savings plan has nowadays become essential in today’s life, for the simple reason that no one can guarantee what kind of pension you will be receiving once you approach your retirement age. Today people live longer, need more money to maintain their lifestyle as they age, and yet save less. Think about this, would you be able to maintain the same standard of living that you have now when you come to retire?
Having a retirement savings plan may provide you with a lump sum of income at maturity that may guarantee a certain level of lifestyle for you and your family. It can cushion the emotional and economic blow of a divorce or accident and give you the upper hand when faced with unexpected problems.
Every single person’s aim will be different, but the flexibility of these products enables us to find a specific product that will satisfy all your requirements whatever your personal circumstances may be. Retirement plans may start from as little as Lm 20 per month and may be kept for a minimum period of ten years.
If you're feeling guilty or panicked for not already having a personal financial plan in place, rest assured that you are not alone. Most people claim that now they are in that time of their life that starting now would not make sense as they are already late to start saving. Nonsense. IT IS NEVER TOO LATE to start planning for your retirement.. For example, it would not be wise to invest in a 100 % equity based investment, whereas it would be much wiser that your choice of investment would be that of a low risk investment, such as bond funds, managed funds, with profit funds or even better, guaranteed products.
With a possible life expectancy of 80-85 years, the chances are that you still have a lot of life to look forward to, and hence to save for. So don’t wait another month or year. Start now, because the sooner you start saving, the more time your money has to grow.
There are different types of investment vehicles that one can use to set aside money for retirement .The most simple maybe being that of a normal bank savings account, or investments in cash funds, to the new, more innovative and now widely available unit linked savings plans.
Whilst when saving using a bank account or a similar cash fund, has very low risk if any at all, the unit linked saving schemes may be that little bit more riskier. But then again, it goes without saying that the possibility of return is much greater than that of a savings account.
This is the main reason, why these types of savings are aimed for the long term, that is more than 15 years. The longer you maintain a savings plan the better, so again, it is never too early to start.
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