It is never too early to begin your retirement planning, which is one of the most important aspects of financial planning.

It is the corpus that we build during the working days that will help us live that 'stress-free' retired life. If we do not plan in advance or invest, then life after retirement is bound to have financial woes which may also render us to depend on others. Therefore, proper retirement planning is a sure way to ensure hassle-free and dignified post-retirement life.

There are many investment options available in the market. One of the most secure ways of building retirement funds is to buy a retirement plan offered by an insurance company. It is an investment plan that helps you accumulate your savings which in return helps you in drawing regular income even after retirement.

Let us take a look at the most important aspects to consider before buying a retirement plan.

Rate of inflation

Buying a retirement plan is the first step but there are other important things to consider while buying a plan. One of the foremost things is to opt for a plan that helps you beat the rate of inflation. The money you invest over time is bound to lose some of its value due to inflation. The worth of Rs 20,000 would not be the same after 20 years as it is today. Hence, the return should be enough to meet the expenses in the future.

Know how much you want

A good plan is not enough if you fail to calculate your future expenses. Hence, it is important to make a list of all possible expenses (including medical emergencies) — regular or irregular — before arriving at the value that you would be needing.

Guaranteed income plan

The annuity or pension plans available in the market come with different payment options, from lump sum to regular payment. While choosing a plan, it is important to opt for a policy that promises guaranteed regular income. This helps you with a regular flow of money. While we may be able to save a lot before retirement we cannot predict future expenses. Hence, a regular income post-retirement is a must.

Compare plans

The retirement plans are long-term investments and hence they should be made after proper scrutiny. With web aggregators offering a variety of services, it is highly recommended to compare all the plans online. A thorough analysis of return on investment and benefits should be done to arrive at the best plan possible.

Take the help of a financial planner

It is quite okay for a person to not understand all the retirement plans that are available in the market. Besides, considering the great value of the retirement plans, it would be a good idea to speak to a financial planner before investing. A financial planner should be able to clear all doubts alongside helping us go through terms and conditions.