5 reasons why you should invest in pension plans

Let us fast forward a few decades into the future. How does your future look like? Are you spending the much needed time with your family?  What about the retirement wishlist that many tend to harbour? Questions like these may seem far-fetched in a young age. But as one gets older, the more resonance these questions have in life? So, while we choose to live in the present, it wouldn’t harm to invest a little bit into our future? How you may ask? There are so many options out there. Understanding your confusion, we have looked through the best options to zero in on pension plans. Here are five reasons why you should invest in pension plans. 

More years spent in retirement

The average life expectancy of an India who is age 60 is about 17.5 years. So, an average person in India is expected to live up to 77.5 years. Now, add to this number the early retirement that many intend to take, you have a long time to spend with retirement. To ensure all your needs and wishes are met, pension plans come into the picture. All you have to do is pick a plan that suits your requirements and be worry free for the future. 

Medical Expenses

Now, while we are at the active stage of our lives, falling ill isn’t a big deal. Our body and finances can take care of any and all emergencies, in our opinion at least. However, that might not be the case in future. As you grow old and move into retirement, there won’t be a healthy body and a regular source of income to play the medical bills. Hence, you should opt for a good pension plan that covers your medical expenses in future without breaking a sweat. 

Financial Dependence

We are in a time and phase where personal independence is not just a need, it is seen as a right. But imagine this, after living independently for your whole adult life, you being compelled to be dependent on others for your expenses. Does not look like pretty picture, right? But that is bound to happen as that’s how society functions. Unless, you choose to plan early and invest in good pension plans. 

Tax Benefits

Taxation is a major worry that the working class population faces year after year. However, there are some measures that one can take to avail benefits. One such measure is investing in pension plans. With these plans, you can avail tax benefits on the premium paid up to a limit of Rs 1.5 lakh. In addition to that, at the time of maturity, the pay-outs you will receive at the plan’s maturity time are also completely tax-free. 

Security for your children when you are not around

The thought of having kids may or may not come to our generation. But, that does not mean we can rule out the possibility completely. In case, you eventually decide to have kids, pension plans can be of great help to you even then. There are provisions in these plans which your children a lump-sum amount in your and your spouse’s absence. This will help you safeguard the future generation of your without much stress. 

If you were to deep dive into details regarding pension plans, you are sure to find many more reasons behind its need. So, go ahead and read up on pension plans thoroughly before taking a call.