WHAT IS PENSION?
In simple term, pension is a type of plan which is generally done after your retirement that provides monthly income in your retirement period. It is also a type of fund which is given after retirement to the person on monthly basis.
It gives you a guaranteed amount of monthly income in retirement and also place the investment for your help.
Pension saves your money for later life; it helps to save money during your work life and after you get retired, the saved money is being carried to you which is thus as a monthly income which will make you financially strong even after your retirement.
Thus, every person must get pension to fulfill his/her needs even after the retirement.
IMPORTANCE OF PENSION
Pension is what helps you to maintain your standard of living in retirement without facing any kind of discomfort. Pension ensures a financial support in your post days which is your post retirement days.
- Pension is a planning for a secure future, your future is secured and in safe hands if you have your pension.
- Pension ensures independence for money, wealth even in those days when there will be nobody left to help you even after you do not have job in your life. Thus, it will help you in every possible way to fulfil your needs if you have your pension.
- To bend down in front of somebody seems quite griming and bewildered so it is better if you have your pension which will give you a pass to all your problems. Pension thus, is very important for an individual to keep their future secure and in hand and also to avoid any kind of financial problem in your future.
- Pension plan is also known as the “benefit plan” where your fixed sum of amount is regularly paid to a person or a defined contribution plan under which a fixed sum is invested and then it becomes available at the age of your retirement.
- A pension makes up for some loss in the retirement. If you suffer from any financial problems after your retirement so its better that you secure it in your early lifetime to avoid such circumstances in future. Thus, pension is beneficial for the person to make their life secure in all its circumstances and efforts made by them during their life.
WHY YOU NEED PENSION?
Pension is needed to fulfill your needs after retirement. Pension do not allow you to be in a state of beggar or borrower rather makes you more independent to live your life peacefully even after you are retired.
Also read: Planning retired life with Lic Pension plans
LIC of India Pension Scheme
Pradhan Mantri Vaya Vandana Yojna PMVVY 842 is a Government of India’s initiative to provide a respectful and self reliant life to senior citizens. The interest rates in this plan are always kept higher than any other current running plan.
The plan can be taken by anyone above the age of 60 years. The plan can be taken for a maximum amount of 15,00,000 and the maximum time period allowed in the plan is 10 years. There is medical examination required in the policy. Other detials like to current running interest rates, how to apply can be found on this page.
All pensioners are required to submit Existence certificate or life certificate every 5 years to continue their policy.
Pension can also be called as helping hand to the people for whom jobs are out of their age. Though, age doesn’t define your ability to learn something new, rather the most perfect age to become more productive and constructive is at the age between 65 to 95 where you get to learn many things properly.