How To Calculate Retirement Corpus In India
Retirement corpus refers to the pool of money that your investments have grown to form over the years. This is the amount of funds required to get you through your post-retirement life. To calculate the corpus needed to maintain your quality of life after retirement, you need to follow these steps:
- Calculate the number of years left until you intend to retire .
- Identify the number of years to come after youve retired .
- Account for inflation by applying the inflation rate on your current annual expenses to arrive at your annual cost of living post-retirement.
- Multiply your annual cost of living after retirement by the number of post-retirement years, and you have your retirement corpus.
What Kinds Of Life Insurance Can I Get At Work
Life insurance comes in two main types term and permanent which may both be available through your workplace.
Term life insurance pays a specific lump sum to your loved ones for a specified period of time usually from one to 20 years. If you stop paying premiums, the insurance stops. Term policies pay benefits if you die during the period covered by the policy, but they do not build cash value. They may also give you the option to port. That is, you can take the coverage with you if you leave your company.
Generally, you should consider a term life insurance policy to:
- Get valuable coverage at an affordable price
- Help cover specific financial responsibilities like a mortgage or college expenses
- Supplement a permanent policy
Permanent life insurance policies do not expire. They are intended to protect your loved ones permanently, as long as you pay your premiums. Some permanent life insurance policies accumulate cash value. That means, the value of the policy will grow each year, tax-deferred, until it matches the face value of the policy. The cash can generally be accessed via loans or withdrawals, and can be used for a variety of purposes. This type of plan is typically portable so coverage can continue if employment terminates.
Consider a permanent insurance policy if you want:
- Protection for life
- Payments that stay the same each year
- To put additional money into the policy on a tax-favored basis
- Cash value you can use while you are living
What Factors To Consider While Buying Pension Plans
When youre buying pension plans in India, consider these factors to ensure that you buy the best pension plan to suit your specific requirements:
- Your age at the time of purchase
- The age at which you plan to retire
- The amount of premium you can afford
- The size of the retirement corpus youll need
- Any other benefits or riders offered by the plan
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Director Of Administration Retirement And Income Solutions Operations
Date Posted: Mar 4, 2022
Location:Tampa, FL, US, 33647
Role Value Proposition:
Responsible for a variety of activities relating to the administration and customer service of group policies for MetLife customers. Provides administrative services relating to enrollments, case implementations, claims, billing administration and call center activities.
Essential Business Experience and Technical Skills:
- BA and 10+ years of relevant work experience in Financial Services industry. Must include experience in a leadership role.
- Deep understanding of existing RIS products.
- Customer-focused and demonstrates empathy for customers, both internal and external.
- Strong written and verbal communication skills.
- A self-starter with the ability to learn quickly and thrive in a fast-paced environment. Proven ability to manage multiple priorities at the same time.
- FINRA or NASD Series licenses preferred
At MetLife, were leading the global transformation of an industry weve long defined. United in purpose, diverse in perspective, were dedicated to making a difference in the lives of our customers.
What Are The Eligibility Criteria For Pension Plans
The eligibility criteria for pension plans vary from one scheme to another. In general, however, these are some commonly required eligibility conditions that need to be satisfied:
- Theres a minimum age you need to attain to invest in this plan.
- Theres also an upper age limit beyond which you cannot purchase a pension plan.
- A minimum premium or purchase price is payable by the investor who wants to buy a pension plan.
- Similarly, some plans also have a clause about the minimum and maximum vesting age allowed.
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Why Should I Choose Pnb Metlife For Investing In A Pension Plan
When it comes to retirement and pension plans, PNB MetLife offers a plethora of choices. You can compare different solutions and pick the one that best suits your specific needs. If youre an employer looking to take care of the pension fund of your employees, we have a traditional employee benefits plan as well as a unit-linked employee benefits plan on our roster. There is also a group superannuation plan on offer. Alternatively, for individuals seeking to build a retirement corpus, PNB MetLife offers an immediate annuity plan as well as a retirement savings plan.
In addition to the great choice of plans on offer, heres why you should choose PNB MetLife for investing in a pension plan:
- Simple and minimal paperwork
What Are The Things I Need To Keep In Mind Before Choosing My Retirement Policy
- Calculate the approximate amount of money you would require to sustain a comfortable life post-retirement. Find an appropriate plan that meets your requirements.
- Check the affordability of the premium rates and the efficiency of the claim procedures in advance.
- Do an in-depth research on all the options available before settling on a plan.
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Metlife Investment Management Originates $156 Billion In Private Placement Debt And Private Structured Credit In 2021
WHIPPANY, N.J., March 09, 2022—-MetLife Investment Management , the institutional asset management business of MetLife, Inc. , today announced it originated $15.6 billion in private placement debt and private structured credit across 247 transactions in 2021. This included $3.0 billion of investments originated on behalf of unaffiliated institutional clients. MIMs total private placement assets under management stood at $103.7 billion as of December 31, 2021.1
MIMs private placement origination for 2021 included $8.4 billion, $5.1 billion, and $2.1 billion in corporate, infrastructure, and structured credit transactions, respectively, and added 104 new credits to the portfolio.
Corporate origination in 2021 extended across a broad range of industries and was led by investment in financials, REITs, transportation and sports finance.
Jennifer Potenta, Head of Corporate Private Placements at MIM, noted: “The deep industry knowledge, structuring expertise and relationships maintained by our groups sector-specific credit analysts helped facilitate strong origination volume in end markets where we saw attractive value.”
Corporate origination highlights included $2.8 billion in financing for U.K. and European issuers, over $650 million of investment into the Healthcare and Lifesciences sector featuring a directly-placed, multi-currency loan totaling nearly $250 million and in excess of $600 million in credit tenant lease transactions across 10 offerings.
What Is Life Insurance And Why Do I Need It
Life insurance is a cost-effective way to protect your family and finances. Should something unforeseen happen to you, it helps ensure that short and long-term financial obligations could be met.
If you have a spouse, or a family , they may rely on you to help keep the household running. Life insurance gives you confidence that your family would be financially prepared without you to handle expenses.
In the event of your passing, life insurance provides money directly to the individuals you select, your beneficiaries, who can use the money as they see fit, including:
- Replacing lost income
- Paying household debts, estate taxes, and funeral expenses
- Funding a childs education
- Supplementing retirement savings
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What Is The Right Time To Buy A Retirement Solutions
Its best to invest in Retirement Solutions as early as possible. The earlier you invest, the more premium you can pay, and correspondingly, the bigger your retirement corpus will be. Purchasing a pension plan early also allows you to pay your premiums comfortably and makes you eligible for tax benefits for a longer period. So, if you havent already invested in a retirement plan, now might just be the best time to do so.
Why Do I Need To Plan For My Retirement
During your working years, it can be easy to maintain a comfortable standard of living. However, when you retire and that regular source of income ceases, it becomes increasingly difficult to retain the same quality of life. If you arent employed in the public sector, your employer may not pay out regular retirement benefits to help you meet the cost of living after youve retired.
Heres where retirement planning can help. By investing in the right pension plan, you can make sure that your post-retirement life is smooth and comfortable.
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Top Retirement Plans For You
- PNB MetLife
- Financial security through regular income
- Cover for spouse
Retirement Solutions, also known as pension plans, allow the policyholder to allocate a part of his/her savings to accumulate over a specific period. Once the policyholder retires, these plans help him/her in having a steady flow of income.
In India, retirement planning is gaining a lot of importance, ever since people have realized the significance of being financially independent.
Here are the highlights of Retirement Solutions:
- It is advisable to plan for your retired life from an early age to get maximum benefits.
- Use the retirement calculator to estimate the amount you would need to invest now, to lead a comfortable life, post-retirement. There is an algorithm with factors like inflation rate, retirement age, the present cost of living etc. to derive an approximate figure.
- You receive regular payouts post your retirement which is called annuity. An annuity can be received on a monthly, quarterly or yearly basis, depending on your policy type.
- An affordable premium has to be paid to get these benefits.
How To Choose The Best Retirement Solutions
The first step to choosing the best Retirement Plan for yourself and your spouse is to identify your post-retirement goals. Figure out how much of a monthly income youll need to sustain your quality of life when youve retired. With this done, compare the many pension plans available in the market and identify the ones where the benefits align with your goals. Thereafter, you can go ahead and choose the plan that fits into your budget and offers you the advantages youre looking for.
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Can A Person Have Multiple Pension Plans
Yes, a person can have multiple pension plans in place. For instance, it may so happen that you could have invested in a pension plan when you were 25. And at 30, you could have received a hike in your salary that puts you in a more comfortable position to invest further in your retirement. In situations like these, you can certainly go ahead and purchase another pension plan. However, you need to keep in mind that the tax benefits on your premium payments are only limited to Rs. 1.5 lakhs under section 80C.
What Are The Advantages Of Purchasing Life Insurance Through Work
Getting life insurance through work can be an easy way to protect your family. If your employer offers a group plan, consider signing up for advantages that may include:
- Competitive group rates
- Guaranteed issue, meaning you can get a certain amount of coverage without answering health questions or taking a medical exam
- Convenient payroll deductions
- Easy access to enrollment and educational tools that can help you make the right decisions about the type and amount of insurance thats right for you
- The confidence of knowing that your employer has reviewed and selected the plan
All you have to do is sign up, and sometimes enrollment is automatic.
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What Are The Benefits Of Retirement Solutions
Investing in pension plans or retirement Solutions can help you in the following ways.
- They help you maintain a comfortable standard of living once youve retired.
- Youre eligible for tax benefits on the premiums paid.
- With a joint annuity option, you can also obtain a protective cover for your spouse.
- Depending on your post-retirement goals, you can choose from a variety of Retirement Solutions available in the financial market.
What Are The Important Features Of Retirement Solutions
While some features may vary from one retirement plan to another, all the best pension plans have certain common characteristics.
|Guaranteed income||Depending on the kind of pension plan, you can receive a fixed income each month either after you retire or right away. This guaranteed income is essentially the pension.|
|Accumulation phase||This is the phase between the date you purchase the plan till the date it matures. Over this period, you continue to pay premiums if youve opted for period premium payments. The premiums invested build up to form a sizeable corpus, which is where your retirement benefits come from.|
|Vesting age||Vesting age is the age when you start to receive the guaranteed monthly pension. Depending on the plan you choose, the vesting age can be as low as 40 or even as high as 90.|
|Payment period||Payment period is the duration over which the guaranteed monthly pension is paid out to the investor. In most cases, the payment period begins after the accumulation phase. However, some plans may allow for partial withdrawals even during that phase.|
|Surrender value||If you decide to stop investing in your retirement plan, you are required to surrender the policy to the insurer. If the terms of the policy permit, you might receive a set percentage of the premiums paid by you as the surrender value.|
|Liquidity option||This is a feature that allows the investor to make partial withdrawals from their retirement corpus even before the accumulation phase is complete.|
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What Are The Tax Benefits In Case I Opt For A Pension Plan
Investing in pension plans in India make you eligible for tax benefits, as specified in the Income Tax Act, 1961. Section 80CCC of this Act provides that premiums paid as part of contributions towards Retirement Solutions and pension plans can be deducted from your total taxable income. The maximum amount of deduction permissible is Rs. 1.5 lakhs. So, your tax liability also reduces correspondingly.
As for withdrawals made from the corpus fund at maturity, the tax benefits are generally limited to the portion thats immediately paid out to the policyholder at the vesting age. In most cases, this is one-third of the corpus fund, and its entirely tax-free.
Why Should I Invest In Retirement Solutions
Investing in Retirement Solutions offers you the following advantages:
- They help you inculcate the habit of saving up for your retirement.
- Pension plans prepare you for post-retirement life.
- They allow you to fulfil your dreams and aspirations after you retire.
- You enjoy tax benefits on the premium paid during the accumulation phase.
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What do Retirement Solutions provide?
Plan early on with a pension plan so you can retire with a sizeable corpus of savings to fulfill your needs even in the later stages of life.
Receive regular payouts after your retirement on a monthly, quarterly or yearly basis & meet day-to-day expenses.
Cover for your spouse
Being one of the best retirement plans in India, our pension plans protects you and your spouse with a joint annuity option.
In your second innings, having a source of income is invaluable. Keep earning long after retiring from work with our annuity plans.
Your pension plan can get you tax benefits under sec 80 C, I-T Act, 1961 from the moment you start paying premiums! Availing this benefit can help you save more with your retirement pension scheme.
What Documents Would I Need To Buy Retirement Solutions
You might need the following documents to invest in retirement solutions in India.
- Proof of age like passport, driving license, or PAN card
- Proof of address like Passport, Driving License, Aadhaar Card, Voter ID, or even a utility bill
- Proof of identity like PAN Card, Aadhaar Card, Passport, Driving License, or Voter IDM
- Proof of income like Salary Slips, Form 16, or ITR V for the previous 3 years
- Passport size photographs
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How Much Life Insurance Do I Need
Everyone is different, but it may be more than you have now. The insurance you need changes as your life changes for example, getting married, starting a family or buying a home may change the type or amount of coverage you need. Many people are surprised to learn that they may not have enough life insurance to cover the many expenses their loved ones will face.
Its simple to determine the amount of coverage you may need now. Just go to www.metlifeiseasier.com to calculate how much life insurance may be right for you.
What Are The Different Types Of Retirement Solutions
There are different types of retirement solutions available in the financial market. What you choose ultimately depends on the kind of financial support you seek post-retirement. Some of the most commonly chosen types of retirement solutions are listed here.
- Deferred annuity plan: You can choose to pay a single lump sum premium or make periodic premium payments. Once the premium payment term is complete, you will begin to receive regular pension income.
- Immediate annuity plan: You only need to make a single premium payment, after which you immediately begin receiving pension payments regularly.
- Life annuity: Under this type of retirement plan, pension is paid out until the death of the policyholder. Thereafter, if the option had been chosen, the spouse continues to receive annuity payments.
- Pension plan with life cover: This kind of pension plan offers the dual benefit of a protective life cover along with a retirement corpus. Here, the policyholders nominee receives a lump sum amount in the event of the formers death.
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