Retirement insurances are the best investment for olden days

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Retirement insurances are the best investment for
olden days
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• With increased life expectancy, financial
  planning for the retirement days is essential.
  While there are lots of ways to plan your
  retirement fund, the one thing which is required
  is the flexibility because unexpected things are
  likely to happen. A retirement insurance policy
  will provide you with the desired flexibility you
  need and be an important part of your retirement
  fund. Retirement days are the important days of
  life. You have lived life respectfully and do not
  want to run out of money during these days as it
  will be difficult for you to earn money at such
  stage. To prevent this, you should focus on the
  long-term planning and the savings should last
  for two lives that would be yourself and your
  spouse. The plan needs to have a margin for
  safety because it is impossible to gauge what our
  world would be in next two to three decades once
  youve retired. Retirement insurance policy helps
  you protect your retirement by building in a
  back-up plan, to protect yourselves and spouse
  from circumstances we never expected.
• Apart from offering a life insurance cover, your
  money is invested in various market based funds
  such as equity, debt and mix funds. You can
  co-ordinate with your financial expert and work
  upon the funds so as to create sufficient
  finances for your old-age.
• The article gives you few essentials risk tips to
  be monitored while choosing a good retirement
  insurance policy

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• Longevity
• Living long has become possible to a large extent
  due to improved healthcare, better amenities,
  growing lifestyle changes etc but it could also
  increase your expenses in retirement. Researchers
  say that due to improved lifestyle changes and
  fitness awareness, healthy diets and foods the
  average life expectancy for a 65-year-old has
  extended by 15-20 years more. Therefore, your
  planning parameters are slowly shifting into the
  house of 80-90s and needs more focused approach.
• Inflation
• Inflation is the major concern across all forms
  of investments. While structuring your retirement
  plan your annual income could be more than double
  over the course of your retirement. For example,
  let's say you need Rs 50,000/- a year in
  retirement. In 25-30 years, if inflation averages
  2.5 a year, you may need more than 100,000 a
  year to maintain the same standard of living. So,
  this has to be dealt properly and well
  incorporated in your earnings for the days post
  retirement.

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• Healthcare costs
• Although things have improved in terms of
  amenities, diet food, healthy living etc but
  uncertainties can never come knocking at your
  door. It can be anytime unexpected such as a
  critical illness. Therefore, with the ailing age
  your healthcare cost you dearly in retirement.
  You need to keep this important factor in mind
  and create your retirement plan accordingly.
• Investment Risks
• Since a part of your fund is invested in the
  markets, there are risks linked to it. Poor
  market performance early in your retirement can
  significantly impact how long your savings will
  last. Therefore, it is important you stay in sync
  with financial expert and understand the market
  movement, projection and forecast to your
  earnings. Strategic fund allocation, fund
  switching when required, taking a proper call on
  aggressive, debt or balanced funds investment and
  options like annuities will help you develop
  retirement income that is not exposed to market
  risks.

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• Taxes
• It may sound weird but at times increase in
  taxes, new types of taxes, evolving healthcare
  reform, or changes in programmes like social
  security, medicare, and medicaid can have a
  significant impact on your income in retirement.
  Though shifts in tax structures are out of your
  control, you can still help yourself by creating
  a strategy to counter these situations and save
  money for your long-term goals.
• By taking a realistic approach for your
  Retirement Fund and accounting for some of these
  risk factors mentioned you can ensure that your
  retirement life is not only happy but can be
  lived with pride and dignity.

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