You might come across people in the everyday life who are 40 or 50 years of age earning rs 15,000 or 20,000 a month. The entire amount was washed up in monthly buys and kids studies and now at this age they have virtually no or a little savings in their banks and almost no investments. Such people post retirement would not be able to fulfill their requirement of medicines.
Anyway st this age it is too late to plan for your post retirement income, health expenses and vhildren's higher education. But there is even hope for such people. They can invest in some low premium pure term plans of life insurance immediately so that it provides high life cover at a low premium cost. Cut down expenses and clear all the credit card liabilities and invest the money in the above. Make monthly regular investments , and the mix of investment and insurance will give better liquidity and higher insurance.
A appropriate mix on equity and debt could work out. Mutual funds are ideal options provided get yourself aquainted with the risks and highs from a insurance advisor. While people are comfortable with debt, equity is often seen with fear. Equity provides high returns while mitigating the risks that are associated with it.
You can also open a PPF account as presently people change jobs frequently and the money from provident fund, gratuity etc comes in smaller amounts after each employment. Such funds get used up often or atleast are not put away syatematically for the future. People should build their own pension, gratuity and PF by saving the money.
Now lets take a fast note of the various options for a person who is aged 40 years.
He can get a pure term life insurance as it provides high insurance cover at a low premium.
He can opt for a pension plan or a retirement plan. If he is likely to take a bit risk he can take the unit or equity linked plans. Endowment plans are not as useful taking into account the inflation factor.
If you are planning for the child's education then it is you need a huge amount in a small time. sip in MF's through high risks is the way for it.
If a person who is at 50 years then
He can take a life insurance term plan
For post retirement , he can invest in high growth equity funds insterd of insurance based products.
For health you should take a family plan.
Take a less and more ration of debt and equity. It is said that debt investment should go up along with the age and at 50 both debt and equity should be equal.
Now considering his monthly investment would be SIP 6,000, health 3000, term cover insurance 6,000, liquid investment 5000.
Hence at this age there is no easy rule. The expenses need to be cut to create some savings for the future. But its better late that never.
Take a look at the Max New York Life pension plan
The Life Makerô Pension Plan is a comprehensive investment linked pension plan to meet your post retirement financial needs, ensuring you complete peace of mind. In this pension plan, you can invest your premium moneys in our investment funds that offer investments of different types; with different combinations of debt and equity assets ranging from potentially high risk - high returns to potentially low risk - low returns to match your risk taking appetite.
The eligibility for this plan is
Entry Age (as at last birthday) Any age between 18 to 65 years
Chosen Retirement Age Any age between 50 to 70 years
Deferment Period Any period between 5 to 52 years(Subject to minimum vesting age)