Last Updated on December 31, 2019 by Gopal Gidwani
The development of e-commerce has grown significantly in India. Today, the active penetration of e-commerce in India has increased to 28%. Due to the increasing need for technology, India has adopted the fin-tech services. Hence, there has been a significant rise in technology-driven financial planning.
Retirement planning can be an essential element of financial strategy. Since the pension income in India is usually low, digital advancements can bridge the gap with personalization and better decisions. Due to the emergence of technology, many insurance companies have availed plans on their online portals. Purchasing a pension plan online ensures flexibility, accessibility, and affordability. In addition to this, the online process is time-saving as well as hassle-free.
When it comes to retirement, you can find out numerous online planning instruments that can help you to analyse your retirement funding requirements as well as track the progress towards your post-retirement goals. Since retirement might be a long-term commitment, you should ensure that you receive maximum benefits for your survival in the future. Therefore, let’s take a look to understand how to use technology to simplify the process:
Every pension plan, which acts as an income replacement plan, might consist of the following factors mentioned below:
- Cost of living
- Healthcare expenses
- Emergency savings
Note: Your retirement plan might be incomplete if it does not consist of the factors mentioned above. If you use online comparison and assessment tools, and artificial intelligence-backed advisory services, you can see to it that you are adequately covered under retirement plans.
Before purchasing a pension plan, you should mention your post-retirement goals and financial requirements; hence your insurers might customize plans for you. Therefore, let’s go through the changes made by your insurers with the help of technology:
a) Unconventional products
During your active working years, you might not be able to fulfil your dreams due to the financial responsibility of your family. Hence, when you retire, you might focus on achieving unfulfilled goals like traveling, starting a new business venture, and so forth. According to a report, over 42% of the millennials in India wish to achieve their life goals after retirement.
If you want to meet your life goals, you should balance your savings and investments accurately. You should select investment instruments, which can allow you to maximize your portfolio based on your risk appetite. A Unit Linked Insurance Plan (ULIP) can allow you to secure your invested capital as well as provide you with high returns on your investments.
b) Automated savings
There can be times when you might have financial dependents even after your retirement. Since your family might depend on you financially, you might be unable to build a retirement corpus for yourself. Hence, it is imperative to automate your retirement savings. All you have to do is schedule your retirement transactions regularly, either on mobile apps or online portals of your insurer. On doing so, the amount would be deducted from your bank account.
The auto-payment method can help you to inculcate a disciplined habit of saving. In addition to this, you can track your investment performance as well as manage your finances. With an automated savings method, you wouldn’t have to worry about skipping your monthly payments towards retirement corpus.
To sum up, to live a peaceful retirement period, you might require a well-thought retirement plan. Today, you might be solely responsible for ensuring that your retirement is stress-free without any financial burden in the future. Therefore, you should actively participate in investments and save your money at the same time. The technology advancements would simply act as a perk in your retirement planning.