One of the most important financial goals for any individual is to prepare for one’s retirement. In general, the habit is to push it for later, given immediate liabilities and aspirations. But retirement years can last as long as the number of working years, with ongoing responsibilities. Given the increasing cost of living, medical expenses and the inflationary impact, the value of money is gradually diminishing. Are people prepared to free themselves from these retirement worries?
It is no secret that investing in mutual funds is one of the best options to plan for one’s retirement. However, the challenge is to find a suitable product. This year, how about celebrating Independence Day by helping your clients achieve financial freedom post retirement.
Aditya Birla Sun Life Retirement Fund is one such scheme that provides a retirement plan suitable for different age groups and profiles, at the same time taking care of corpus creation. The open-ended scheme has a lock-in period of minimum five years or till retirement age, whichever is earlier. To help investors plan their retirement efficiently, the scheme offers four asset allocation plans. The objective is to suit clients of all age groups and risk profiles. This is a solution oriented scheme and will help an investor plan his retirement smoothly, through the various phases of financial planning.
In total, there are four diļ¬erent investment plans: The 30s Plan, The 40s Plan, The 50s Plan and The 50s Plus – Debt Plan.
In case of ‘The 30s Plan’, 80-100 % of the corpus is invested in equity and equity related instruments and the rest in debt and money market instruments. ‘The 40s Plan’ has a flexible equity exposure of 65-80%, while the rest go to debt and money market instruments. ‘The 50s Plan’ has a flexible debt exposure in the range of 75-100%. ‘The 50s Plus Debt Plan’, designed for those nearing retirement age, and invests up to 100% in debt and money market instruments.
Along with value additions like Step-up SIP, Century SIP, SWP, STP, the scheme offers a trigger facility for seamless transition of risk profile and asset allocation. As one grows older and reaches new milestones in life, it calls for automatic changes in asset allocation (change of one plan to another). For instance, when an investor turns 40, the investment plan would change from the 30s Plan to the 40s Plan. Similarly, the investment plan would change to 50s, as investor turns 50. To obtain this facility, the investor needs to opt for it while investing in the scheme.
The scheme provides investors an investment solution to plan retirement from as early as in their 30s to factor in the rising cost of living. Efficient retirement planning is extremely important to manage future expenses and an investment option like this will help one spend the golden years of one’s life in peace.
