Retirement happens to be one of the most important life-stage goals, if not the most important! Yet, most of us do not plan prudently to ensure we have a happy and hassle-free post-retirement life. One of the studies by Tower Watson (an US-based Consultancy Company) mentions that 78% of Indians don’t save enough for their retirement.
Retirement is increasingly becoming more pertinent now due to some of the following reasons:
- Increasing cost of living due to high inflation: Implication – Individuals have to save smartly to beat inflation
- Increasing Life Expectancy: Implication – Individuals have to ensure that the retirement corpus is fairly large to support the long post-retirement life
- Lack of formal Social Security System: Implication – Individuals cannot hope for external support for their retirement
- Move towards a Nuclear Family System: Implication – Individuals have to ensure that they fend for themselves
Retirement is a fairly long-term goal, which requires careful considerations and planning. A 30-30 rule of thumb says an individual earns for 30 years, to provide for 30 years of post-retirement life where the individual’s income would have stopped, yet the need to maintain similar life style exists.
Introducing: Tailor Made Retirement Fund
We are happy to introduce to you a Retirement Fund – a one-stop Equity & Debt Oriented Retirement Solution with an aim to help your staff save & accumulate for enjoying their post retirement life. Retirement Fund encourages them to start saving for their post retirement life from the young age. The scheme provides flexibility to the investors to select or change their asset allocation anytime, depending on their changing risk profiles and investment requirements. Along with the fundamental concept of encouraging investors to prudently save for their retirement, the scheme combines various facilities such as Step-up, Auto Transfer, Auto SWP, etc., in order to help them effectively meet their retirement objectives. The product has 5 years lock-in, to instill discipline amongst investors towards staying invested for the longer term.
Key Features of the Fund:
- Retirement Fund offering equity-oriented solution
- The Fund will have 2 Schemes: (Both the Schemes will have different portfolios)
- Wealth Creation Scheme - Equity Oriented (65%-100% in Equities)
- Income Generation Scheme - Debt Oriented (5%-30% in Equities)
- Note - The Fund allows unlimited switches between the two schemes, without any exit load
- A host of features for investors to suit their exact requirements
- The Fund has been notified as a Pension Fund under Section 80C(2)(xiv) of the Income Tax Act, offering tax deductions for investments up to Rs. 1.5 Lakhs.
What is in it for your staff?
Your staff can follow 3 simple steps for an effective Retirement Planning using Retirement Fund
- Step 1: To SAVE prudently, the Fund offers the flexibility to choose asset class, depending on the actual requirement
- Step 2: To ACCUMULATE a healthy retirement corpus, the Fund offers an option to increase SIP through STEP UP Facility in the underlying schemes (Wealth Creation & Income Generation Scheme)
- Step 3: To ENJOY post retirement life, the Fund offers AUTO SWP Facility and other Liquidity Benefits
We believe Retirement Fund can help your staff effectively meet their retirement goals, by allowing them to invest into equity / debt-oriented asset class, depending on their requirements, and combining them with features and facilities to suit their actual requirements.
An individual could use the Fund to save, say, Rs.5000 per month for 30 yrs, accumulate a retirement corpus of ~Rs.3.5 crores at age of 60 and enjoy a post-retirement pension of ~Rs.3 Lakhs per month for 30 years!!