A Retirement Plan is a long-term financial plan that helps you save money during your working years so you have a steady income after you stop working.
It ensures you can enjoy a comfortable life even when your regular salary ends.
Because after retirement you still need money for:
Monthly expenses
Medical costs
Travel and hobbies
Emergencies
Maintaining your lifestyle
A retirement plan gives you financial independence in old age.
It usually has two stages:
You pay money (monthly or yearly) into the plan during your working years.
After retirement, the plan gives you:
Monthly pension, or
Yearly income, or
Lump sum + monthly pension
Regular income after retirement.
You invest money once or over time, and receive guaranteed income for life.
Market-linked plans (like mutual funds or ULIPs) that grow your money over time.
Examples (varies by country):
Social security
National pension schemes
Provident funds
401(k) plans
Public pension programs
Steady income even after you stop working.
Some plans offer pension for life.
A lump sum amount at retirement age.
Many retirement plans offer tax deductions.
Choose:
Monthly pension
Annual pension
Lump sum + monthly pension
If something happens to you, family may receive pension or lump sum.
Everyone who wants to be financially independent in old age — especially if you want:
A comfortable post-retirement lifestyle
Protection from inflation
Peace of mind for future expenses
No financial burden on family
The earlier, the better.
Starting early gives:
Lower premiums
Higher returns
Bigger retirement corpus
Even if you’re older, it’s never too late to start.
This depends on:
Your current salary
Monthly expenses
Retirement age
Lifestyle goals
Health needs
A common rule:
Save at least 10–15% of your income for retirement.
Financial freedom
Guaranteed income for life
Support during medical emergencies
Helps beat inflation
Reduces stress about the future
