Skip Navigation
0 of 0 Displaying
 |   Displaying

No Results

    Options for Retirement Plan | PNB Metlife

    What You Need to Know About Your Retirement Plan Options If You’re Starting Your First Job

    Last Updated On 17-07-2023

    When you are in your 20s and 30s, especially at the peak of young adulthood, it can seem weird to fast-forward and think about retirement. Retirement can seem far-off for those in their 50s and 60s to worry about, especially at the start of your career. The last thing you want to worry about is the future when the present feels like all you’re going to enjoy.

    But no one financially wise will tell you that thinking about your retirement only when it arrives is sensible. In today’s hyper-independent world, it is almost impossible to remain complacent in your retirement planning and expect things to continue the way they are now.

    Unless you have a family fortune to fall back on or are sure someone else will take your responsibility, you need to start retirement planning as early as possible. And starting from your first job is a wise way to do that. The benefits of starting retirement planning early and the retirement options available right from your first job are plenty.

    Get a Callback

    OTP sent successfully

    Thank you for getting in touch with us. We will contact you shortly.

     
     
     

     

    What are the Retirement Benefits of Retirement Planning As Soon As You Start Your First Job?

    Here are the benefits of retirement planning:

    • First, you understand your long-term goals.

      One of the foremost retirement benefits of starting your retirement planning during your first job is the clarity you gain on your short and long-term goals. You can suddenly see the bigger picture in life and identify what is of importance to you, whether it is marriage, higher education, travelling the world, or buying your dream home. You get to decide the type of life you want pre- and post-retirement.

    • You start budgeting and saving early.

      When you begin a new job, it can be tempting to splurge money and spend it on yourself. But while pampering yourself once in a while is okay, you have to be careful about making it a habit and spending without any aim or restraint.

      You must realise that you cannot start retirement planning without tracking your expenses and sticking to a budget. Once you begin identifying your goals, one of the most automatic retirement benefits is that you start to think about ways to save your money for retirement.

    • You get a higher return on investment.

      The most valuable retirement benefit of early retirement planning is that you get a higher return on any investment, especially with market-linked investments. Most profitable investments rely on the principle of compounding, and compounding only works when your money gets to grow over many years. The higher the number of years, the better other factors are considered. When you start late in life, you are more likely to reap lesser from your investments.

    • You can beat the effects of inflation.

      With early retirement planning, you can also negate the effects of inflation. As inflation is the continuous rise in prices, what costs you 10% today might cost you 60% more ten to twenty years the line. But early retirement planning helps you become proactive about saving, investing, and finding ways to tackle the price hikes.

      That way, you also stay prepared in the face of emergencies that require immediate financial assistance, like medical crises, job loss, accidents, and injuries, among other life-altering scenarios.

    What are the Retirement Options Available As Soon As You Start Your First Job?

    When you start retirement planning at a young age during your first job, almost all retirement investment plans and tools will be available to you. You will have the time, space, and eligibility to experiment with multiple retirement plans like:

    • Retirement plans

      There are many types of retirement policies in the market, but you can categorise them into two broad categories – market-linked and non-market-linked retirement plans. Retirement plans are also known as pension plans.

      In market-linked retirement plans, your money gets invested into capital market-related instruments, and you get compounded interest returns over the years. In non-market-linked plans, you get compounded returns but at a pre-specified interest rate. A retirement policy can also come with the added component of life insurance.

    • Annuity plans

      Annuity plans are another category of retirement plans. Annuity plans work on the same principle as other retirement plans and come in market-linked or non-market-linked options. However, the returns you receive in an annuity plan are in the form of regular income payouts lasting your entire retirement tenure.

      There are also two sub-types of annuities – immediate annuity and deferred annuity. In an immediate annuity, you receive the income payouts as soon as the annuity plan ends, and in a deferred annuity, you receive them after a delayed period. For an annuity plan to work, you have to pay a lump sum at the start.

    • Government schemes

      Just as every type of retirement and annuity plan will be available to you at a young age, so will government-offered retirement schemes. Of course, most pension and annuity plans are offered by banks, insurance companies, and other financial institutions.

      But there are some retirement schemes offered by the government of India, in particular, to serve the goal of retirement. Some of the most popular government retirement policies include the Public Provident Fund, National Pension Scheme, Employee Pension Scheme, Atal Pension Yojana, and others.

    • Life Insurance

      Life insurance is one of the best retirement benefits and options available while starting out at a job. Because the younger you are, the lower your life insurance premiums will be. Life insurance is not a proclaimed retirement tool, but it is vital if you want to live a stress-free retired life.

      You get to protect your loved ones in your absence and provide them with financial support with life insurance. This will be even more beneficial if you are the sole income earner of your family. With life insurance, you also get to save and grow your money through compounding. Most retirement plans also offer life insurance, but if not, you can get it separately.

    • Health insurance

      Another retirement option available at a lower cost to you when you are young and beginning a new job is health insurance. Health insurance is not an accumulative financial tool but a protective and essential one. Financial experts often stress the importance of having health insurance to cover the costs of medical emergencies. And given that your retirement age is when you will get exposed to critical ailments, you need to have a financial safety net.

    Conclusion

    One of the best benefits of starting retirement planning early, especially at the beginning of your career, is that multiple retirement options are available at affordable prices. In addition, you get to unlock various investment benefits and benefit most from compounding when you begin early, as opposed to starting just a few years before your retirement age. To know more about term planulip planterm insurancelong term savings and more visit PNB MetLife website.

     Disclaimer:

    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883
    For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
    Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.

    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.

    AD-F/2022-23/318

    RELATED PRODUCTS

    Read this Before Buying Immediate Annuity Plan | PNB MetLife

    RETIREMENT

    The retirement years can be a wonderful period in life when planned properly. You can sit back, relax, travel, rest and do whatever you want with a...

    Learn To Choose And Decide The Right Insurance Plan | PNB Metlife

    RETIREMENT

    Picking a suitable Life Insurance plan | PNB MetLife Insurance

    As the health insurance needs of individuals have grown, health insurance companies in India have made sure to launch better plans offering a wider...

    New Daily Life Retirement Planning | PNB Metlife

    RETIREMENT

    Dreaming of your new daily life - retirement planning

    Financial security is a key component of a happy retirement, but how you choose to spend your daily life throughout retirement is critical as well....

    Retirement Plans for your All Need | PNB MetLife

    RETIREMENT

    Life insurance is imperative as a safeguard against the uncertainties that hover around us all the while. Human life is fragile and subject to risk...

    Tips to Manage your Finances for your Dream Retirement Home | PNB MetLife

    RETIREMENT

    Building a retirement nest is easy if you use your pre-retirement years well. We share 5 tips.. It is every person’s dream to have a peaceful reti...

    Want to know more about how you can protect your family?

    See all our articles

    Disclaimer

    Collapsed Expanded

    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

    Site best viewed in following browsers
    Chrome 70+ , IE 11+, Firefox 76+, Safari 11+

    Get a Callback Get a Callback

    Ask khUshi

    Hi! I’m khUshi. How can I help you?