Retirement Planning Strategies by Vivek Jain, Head of Investments at Policybazaar.com

Vivek Jain, Head of Investments at Policybazaar.com, has some valuable advice for those planning for retirement. According to Jain, if you are below 40 years old, you can consider investing in a market-linked retirement plan as your risk appetite is higher and you have a longer investment horizon. This strategy could potentially yield good returns over a 20-year period in the stock market.

On the other hand, if you are closer to retirement, around 50-55 years old, Jain recommends putting most of your savings into a guaranteed pension plan. This ensures a secure source of income during your retirement years. Jain emphasizes the importance of diversifying your portfolio, with a mix of market-linked and guaranteed instruments based on your age and risk tolerance.

When it comes to retirement products offered by insurance companies, Jain highlights two main types. For younger individuals below 40, market-linked plans with potential returns of 12-15% are available. These plans offer market-linked returns but come with some risk. On the other hand, guaranteed pension plans, also known as annuity plans, are suitable for individuals above 45 looking for a secure income stream during retirement.

One unique feature of some retirement plans is the systematic withdrawal option, allowing investors to withdraw a percentage of their fund value after a certain period. Additionally, certain plans offer tax-free maturity values and pensions for investments below a certain threshold.

Overall, Jain stresses the importance of planning for retirement early and considering a mix of investment options to secure a comfortable retirement. By diversifying your portfolio and choosing the right mix of market-linked and guaranteed plans based on your age and financial goals, you can ensure a stable financial future post-retirement.