Pension plans mean security and stability in the field of monetary matters. Everyone should make plans for their old age when they will not have that vigour, no source of earnings or income. Your retirement plan will help you to live a life with respect, without compromising or changing the standard of living in the rest of the year. You can make a plan where to invest, how to invest and can get the maximum benefit from your Pension scheme. If you invest it properly can get a heavy amount of money on a regular basis through pension plan after retirement.
What is the pension release?
Pension release, which is also known as pension unlocking, means, that you are taking money from your pension system before your retirement. It is not totally illegal means some parts of your pension you can avail, but not fully. That means you cannot draw the full amount of your pension. You are eligible to take money if you fifty-five years old or more than it. Therefore, if you are asking for release my pension, you have to go through certain steps for getting money.
Consult a take advice from an adviser
It is always better to consult with a financial adviser and then you proceed to release my pension. The adviser is an expert, he knows the rules very well, then he can suggest you a product which is suitable for it. If you are going to purchase it without taking any advice, you may fall into trouble. Your products may turn out to be wrong and you may lose all the money.
Therefore, the company is there to help you, by giving you proper financial plan. They can show you the right place for investment such as:
- Investing, tax planning
If you want to plan your tax saving properly and observe that the total contribution to EPF including that made by the Employer as well as by Employee is less than Rs. 1.5 lakh the difference amount may be deposited in Tax Saving Funds.
- It is better to invest 30% of the salary ion different equity mutual funds. You should not invest in stocks directly. You just make a routine of this habit.
- Invest 50% of your annual bonus for a long term in auto-renewing bank FD. It is for your emergency fund.
- You can spend your remaining bonus on travel, or take a course, or do fun stuff.
- You can pay your home loan from the bonus money in three ways and pay one-third as prepaying the loan.
- If your family is depending upon income, then you can invest for a long term say, you can buy a product for the 40-year term. You can invest twenty-five for life insurance plan. You can invest for thirty-five or thirty so that you can get a recurring income. Every time you have to ensure that your total sum will be 30x of your salary.
- You should not invest in life insurance policy if you do not have dependents.
- You can invest your money on health insurance for the members of the family. You can invest in car insurance, insurance of your house, and on its contents.
- Refurbish the insurance every year, before the completion of the date.
Thus, if you want to release my pension, then you have to take advice from an expert who can show you the right path. You would like to spend the money in proper place so that you can get dividend after your retirement.