The millennial guide for an easy-breezy retirement


Millennials need to strike a delicate balance between planning for the future and paying for today. Living in a world dominated by technology and the pressures of keeping abreast with lifestyles of the rich and famous in a social media dominated world, planning for a retirement that could be 40 years away often gets pushed to the bottom of the priority list for millennials, loosely defined as those born between 1980 and 1999. 

But, how important should it be? Just like you need money today to live comfortably, travel, shop and eat out, you will want to enjoy a similar lifestyle after you retire as well. And, for this, saving for retirement is key. In fact, financial experts feel that time is a big asset when it comes to retirement planning. So, the sooner you start, the better it is going to be!

There are several reasons why millennials should start planning for their retirement early-on. 

Longevity

After hitting burnout in high-stress jobs, many millennials wish to retire early. Unlike their parents who worked till their mid or even late-60s, millennials aspire to hang up their boots by 50. But, this means that we will live close to 30-40 years without any steady source of income or salary hitting the bank account. And, the expenses will remain. This makes it imperative to start planning for retirement early on so you have a sweet buffer to bank on when you wish to retire.

Saving for a rainy day

Millennials were the worst segment when it came to job losses during the Covid-19 pandemic, as those between the age group of 25 to 29 years accounted for nearly 46 per cent of all job losses in 2020. In today’s world, lay-offs are also real and younger talent replacing less-productive resources is a common occurrence. Events such as these teach us to create a buffer for a rainy day, which a retirement fund can provide for. 

Changing family dynamics

With increasing urbanisation, the younger generations are moving out of their family homes in search of the right work opportunities. As a result, nuclear families are becoming more and more common. Unlike our parent’s times, it is unlikely that millennials will live with their children in their old age, making it all the more important to have the financials sorted out before hand and have a steady source of income that can cover all the expenses. 

Following a passion

Having your finances sorted allows you to lead a comfortable life even if you stop working. So, you can follow a passion or take up something you love to do post retirement without worrying about the funds for it. If you have something identified when you are younger, you can even create a separate buffer for this which is separate from your living and medical expenses post retirement. 

How HDFC Life Systematic Retirement Plan can help you

There are many ways to secure your financial future post retirement. The clutter of products that invest across diverse asset classes can get confusing even for the financially wise. You should ideally choose a plan that helps plan for retirement in a systematic manner so that you can be worry free when you stop working. 

One such product that ticks all the boxes is the HDFC Life Systematic Retirement Plan which offers you: 

The option to defer annuity pay outs by choosing the deferment periodOffering guaranteed income for your whole life by paying premiums for a limited payment termThe choice of receiving annuity monthly, quarterly, half-yearly or yearly as per your convenienceThe option of return of getting the total premiums paid in the event of death

In addition, HDFC Life Systematic Retirement Plan has several other benefits, such as: 

1. Choosing your annuity options at the time of inception. You can pick between Life Annuity or Life Annuity with Return of Premiums. While the annuity rate will be guaranteed at the time of inception of plan, the premium will vary depending upon the option chosen.

2. Choosing your annuity pay out frequency. The annuity amount is always paid in arrears but you can select how you wish to take it – annually, half-yearly, quarterly or monthly. You can choose to get the pay outs on the day of your policy anniversary, or on any other date of your preference.

3. You can also avail of a Grace Period of 15 days for monthly frequency of premium payment and 30 days for annual, half yearly and quarterly to pay premium without any penalty.

Disclaimer: This article has been produced on behalf of the brand by the HTBS team.

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