How to Get Guaranteed Income for a Wealthy Retirement?

Retirement marks the beginning of a new life phase driven by freedom and relaxation. It allows individuals to spend their time how they want and live the life they always dreamed of. However, it can only be achieved with financial stability during retirement. With retirement, one of the biggest income sources, i.e., income from a job, comes to an end.

Not having any dependable income stream to replace this lost income can lead to financial uncertainty, making your post-retirement life challenging. Hence, invest time in thoughtful retirement planning during active work years. Numerous options exist to accumulate substantial funds for a secure retirement, such as Fixed Deposit (FD), annuity plans, PPF, guaranteed income solutions, etc. In this blog, we discuss some of the best income strategies for retirees that can secure their retirement.

Importance of Financial Security in Retirement

Financial planning for retirement is crucial because every retiree requires a stable, predictable income to maintain the desired lifestyle comfortably. Not having enough income streams can make it challenging to manage day-to-day living expenses, medical costs, and other emergency expenses that may emerge unexpectedly. If you’re in your 30s, 40s, or 50s, you can invest in different Retirement Plans that provide assured income during your golden years.

We encourage individuals to explore different investment options that align with all their short and long-term financial goals and risk profile. For example, if you want a risk-free plan that provides consistent retirement income, explore annuity plans, PPF, and guaranteed income solutions. People with a moderate to high-risk profile can explore Investment Plans like Shriram Life Wealth Pro (UIN:128L096V01) to build substantial wealth for retirement.

Exploring Guaranteed Income Solutions

Reliable Income Streams

One of the biggest benefits of guaranteed income is its predictability and stability. Retirees who rely primarily on their accumulated savings or investment income must have multiple assured income streams that provide assured income for retirement security. It can help them manage their daily living expenses while budgeting accordingly to maintain their desired lifestyle.

If guaranteed income is a core part of your long-term financial security, consider investing in Fixed Deposits (FDs), annuity plans, Public Provident Funds (PPF), government bonds, and guaranteed income solutions. These investment options provide stable returns and aren’t affected by market fluctuations. 

Benefits of Low-Risk Investments

Every individual must include at least one low-risk plan in their financial planning for retirement portfolio to enjoy financial peace of mind during retirement. Retirees can enjoy income predictability since low-risk investments preserve their capital, and the returns don’t deplete because of market volatility. This fixed income can help them live a comfortable life without worry and financial uncertainty. 

You can invest in numerous Retirement Plans and Protection Plans that are non-linked and non-participating by design. Other low-risk investments include FDs, PPFs, government bonds, municipal bonds, certificates of deposit, annuity plans, post office savings accounts, and gold.

Risk-free Assured Income Plans

Retirees who value stable, consistent retirement income over fluctuating market-linked returns must explore guaranteed income solutions, like the Shriram Life Assured Income Plan (UIN: 128N053V05). It is a Savings Plan that provides dual benefits of Life Insurance coverage and assured income. Let’s explore this low-risk and stable income-generating plan better.

Assured Income Plans as a Secure Option

These non-linked and non-participating plans protect your initial investment against economic downturns and market fluctuations while providing stable growth on returns. When you pay periodic premiums on these plans, the insurer accumulates and invests them in several low-risk financial instruments. The earned returns are paid to policyholders in the form of assured income. The plan’s security and income predictability make it an attractive retirement security tool.

Why Consider Assured Income Plans?

Shriram Life Insurance’s Assured Income Plans (AIP) (UIN: 128N053V05) are keys to long-term financial security. They provide dual benefits of life insurance coverage and regular income, providing multifaceted protection to policyholders. Besides coverage and assured income, the features and benefits of AIP include flexibility, additional protection via riders, higher benefits for higher premiums, death benefits, and more. 

Unlike other guaranteed income solutions such as FDs, PPFs, government bonds, certificates of deposit, etc., Assured Income Plans provide additional life coverage benefits, flexibility, and options to upgrade financial coverage.

How to Choose the Right Investment Strategy

Assess Your Financial Goals

Assessing your financial goals lays a strong foundation for effective retirement planning. If you want to secure retirement for a worry-free and comfortable post-retirement life, start by evaluating your financial obligations and goals for the short-term and long-term periods. Estimate the amount you’ll need during retirement to maintain the desired lifestyle. Factor in inflation, upcoming major life events, etc., to arrive at a realistic figure.

Now, start looking for plans that align with the set goals and can help you fulfil them. Investing in plans like Shriram Life Premier Assured Benefit Plan (UIN: 128N094V04) is ideal if your primary goal is to secure your family’s financial future when you’re not around while building your retirement fund. On the contrary, investments in child plans like Shriram Life New Shri Vidya Plan (UIN: 128N051V03) are a better choice if you want to first build funds for your child’s education expenses.

Compare Different Options

Once you’ve identified your financial goals, shortlist at least three to four plans that can help you achieve the desired goals. Then compare all the plans against crucial parameters, such as flexibility, payout frequency, policy terms, available riders, and terms and conditions around life insurance coverage, cash bonus (if any), guaranteed income, settlement options, etc.

Seek personalized guidance from qualified CAs and financial planners if you’re overwhelmed by the features and cannot understand how a particular investment fits into your overall plan for long-term financial security or what specific clauses for different coverages under retirement plans (AIP) mean. They will use their expertise to guide you through the various investment options, so you can make informed choices based on your goals.  

Real-Life Examples and Case Studies

Mr. Ravi, a 45-year-old government employee, wanted to secure his retirement by creating a stable, risk-free income source. He chose the Shriram Life Assured Income Plan (UIN: 128N053V05) and opted for a 10-year premium payment term, a 15-year policy term, and an annual premium of ₹1,00,000/annum. He received ₹1,80,000/annum from the 11th year onward as regular income and maturity proceeds at the end of the 15th year. This amount helped him maintain his desired lifestyle during his golden years.

Ms. Rashmi, a 38-year-old business owner, invested in Shriram Life Assured Income Plan (UIN: 128N053V05) to create a significant retirement fund to support her lifestyle during her retirement. She chose the 6-year premium payment term, 12-year policy term, and an annual premium of ₹1,50,000. Since she timely paid all her premiums, she received ₹1,35,000/annum from the 7th year. Ms. Rashmi also received maturity benefits as she outlived the policy term, significantly boosting her retirement savings for comfortable post-retirement living.

Conclusion

Individuals desiring a smooth life during their golden years cannot ignore efficient retirement planning during their active work years. It will help them explore reliable income strategies for retirement that can replace their lost income. Out of all the other available options, Assured Income Plans (AIPs) emerge as a dependable and risk-free investment plan, so ensure you include it in your retirement portfolio. 

You can explore several guaranteed income solutions like AIP at Shriram Life Insurance. We also provide a wide range of savings, protection, investment, retirement, and special plans to help you achieve different goals, such as child education, buying a house, child marriage, retirement funds, wealth accumulation, and more.