Young Indians Want To Retire Early And This is How You Can Too

Live life king size. Secure your life post retirement with HDFC Life's Systematic Retirement Plan.

Burnt out from your corporate job? Here is how you can retire early.

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Saving up for retirement takes the front seat, especially as India witnesses a spike in life expectancy along with soaring inflation rates. With our cultural shifts towards nuclear families, high costs of education, expensive healthcare and more, the need for a clearly defined retirement plan is quite crucial. Exhausted and burnt out from the demands of their corporate jobs, increasing number of young Indians are working towards a stable and early retirement now more than ever. How can you plan the same?

HDFC Life’s recently launched HDFC Life Systematic Retirement Plan is one such option that gives you a head start to an early retirement. A non-participating, non-linked, and savings deferred annuity plan, this can help you save for your retirement systemically. It allows you to lock in your preferred annuity interest rates right when you sign up for the policy. This means, no more living with the fear of exhausting your retirement savings as annuity ensures a guaranteed income for life.

But why do young adults need to pay attention to early retirement planning?

1. Increasing Life Expectancy

India’s current life expectancy is estimated at over 70 years as opposed to 66 years, a decade ago. With a longer life span, retirees also want to live a healthier life. This highlights the importance of proper retirement planning since a longer retirement period would need a larger corpus for sustenance.

2. Inflation

The cost of living today is significantly higher than what it was 20 years ago. India has been witnessing a steep cost-of-living or soaring inflation for years now. Inflation also has its merits. For the young it reflects in a bump in their salaries and in certain circumstances it signals economic growth. But it pinches the retired citizen the most. Savings are your all-weather friend and you can live with inflation if you strategically map out your retirement. Add to that the added expense of healthcare that comes with old-age and the challenge becomes clearer.

3. Financial Independence

Living in nuclear families presents many challenges especially around caring for the elderly when we are all tied up with the demands of our corporate jobs. While parents tend to rely on their children under difficult circumstances, they are often used to doing things by themselves. They have lived their entire lives without being dependent on anyone and most of us are raised to follow the same principles. Thus, selecting and investing in the right retirement plan for you means you will not have to depend on anyone else for your needs - be it your medical costs or everyday expenses. So how can HDFC Life’s Systematic Retirement Plan helps you?

The Plan assists you in living your post-retirement dreams by choosing from two plan options – Life Annuity and Life Annuity with Return of Premiums. Key features include:

● Selection of a premium payment term of 5 to 15 years while the deferment period can be up to 15 years.

● You receive guaranteed income for life by paying premiums for a limited payment term.

● You decide upon the annuity rate at the start which remains unchanged for the duration of the policy.

● You can pick your preferred annuity payout date with the “Save the Date'' feature. This makes cashing out on birthdays, anniversaries and other special occasions a lot easier.

● You can choose between monthly, quarterly, half-yearly or annually annuity payout frequencies.

● Issue your policy within 24 hours with no medicals and underwriting as long as necessary documentation and verification is completed via chat.

So, while your active income stops at retirement, you can still rest easy and live a healthy life with the proper retirement plan in position. Taking all of the factors into account, you can in fact build a corpus big enough for your retirement. The secret is to start early.

Visit here for more information on the HDFC Life’s Systematic Retirement Plan.