1. PENSION - THE REALITIES
PRESENTATION BY SHANKAR REDDY
PROFFESIONAL PENSION PLANNER
2. Life Insurance and Pension
Life Insurance and Pension are exactly opposite products .
Life insurance covers the risk of ‘’ DYING TOO EARLY ‘’ ,
While pension covers the risk of ‘’LIVING TOO LONG ‘’ and
both the product are most important pillars in personal financial
planning .
Most of the people have insufficient life insurance protection ,
and the pension-old age income , still not well protected
3. Why Pension ?
Life expectancy has increased. The average life span in India was 32yrs in 1947 and
it will close by 85 by 2020. ( Report by OASIS – Old age social and security )
.Because of education, advance health care and improvement in standard of living.it
means working and non working period will be the same.
Today ,population is living longer and retires earlier.
Everyone prefers less dependency on children and more dependent on one’s own
financial resources.
Now, the young once are setting up there own establishment immediately after
marriage & joint family systems are breaking up fast .
4. What happens if there is no pension ?
Fear of burden on children
The toss is often felt in the form of lack of independence
Reduced sense of self worth
A sense of being a cause of friction in household.
Loneliness & sense of meaningless in one’s own existence
5. Facts -
Everyday thousands of people retire .On retirement the regular income ceases .They move
into to new lifestyle with new needs & new insecurities ,most of them must have frequently
thought about their approaching retirement ,But hardly any one actually planned their post
retirement lives.
In India total age population is 11 crores & out of that only 10% people are financially self-
dependant ,30% population have to work even after retirement & 60% completely depend
on children ( OASIS report ).
It is established fact that we live in aging world . Every one must think of Happy and
Comfortable and care free retirement life , because there is non other than you yourself who
can take care of retired life .Remember ‘’ SILVER IN HAIR IS RESPECTED ONLY WHEN
GOLD IS THE POCKET ‘’ .For life time self dependency and self respect .Pension is the
only core product .
6. YOUR MONEY AS A PENSION OR IN
A LUMPSUM
ONE ALWAYS NEEDS A PENSION
AS THERE IS NO SECONDARY OPTION TO PENSION AS THE PENSION IS
ONLY COMPONENT
IN THE WORLD WHICH DOESN'T CHANGE ACCORDING TO THE MARKET COMPARTIVELY YOU KEEP
YOUR MONEY IN FD , MUTUAL FUND ETC
OR
TAKE LUMPSUM AND THE MONEY WOULD VANISH IN A FEW YEARS
WHEN YOU ARE STILL ABLE TO LIVE .
7. YOUR MONEY AS A PENSION AND
BE STILL AN INVESTOR
THIS IS MOST IMPORTANT QUESTION
HOW ?
WHEN THE PERSON IS UNABLE TO MAKE ENOUGH CORPUS DURING HIS EARNING PERIOD
OR
DUE TO CONTINUE GROWING COST OF LIVING
OR
DUE TO CONTINUE VALUE OF MONEY DEPRECIATING
OR
LONGITIVITY OF LIVING.
THIS IS THE ONLY OPTION !
8. 3. DO YOU NEED MONEY AS A PENSION ,STILL
AN INVESTOR AND HAVE INSURANCE
AS MANY OF THEM DON'T KNOW
THAT ONE COULD & SHOULD
ALWAYS BE AN INVESTOR
EVEN DURING THE RETIREMENT PERIOD AS FOR ABOVE REASON-A PERSON INVESTING IN
LIC FOR A LONGER PERIOD ON MATURING IN DIFFERENT PERIOD ENSURES
GROWTH OF MONEY ,
RECEIVING MONEY TAX FREES PERIODICALLY AT SAME TIME INSURING HIM SELF
AGAINST DEPENDENT SPOUSE ,BY PAYING THE PREMIUM OF LOWER AGE .
9. As per survey below are few line of what older
people between 55 and above think and behave on
life insurance
1) FEEL SHY - BECAUSE IS THERE ANY AGENT WHO COULD HELP HIM BUY
INSURANCE
2) OFF ENOUGH FUND NOT SAVED FOR RETIREMENT, THERE DEATH WOULD
HELP FAMILY OR SURVIVING SPOUSE
3) DUE TO CONTIUED ILLNESS FOR SO MANY YEARS, WHERE THE ENTIRE FAMILY
HAS SPENT ENTIRE SAVING - PERSONS DEATH WOULD HELP THEM RECOVER THE
LOSES
4) INCREASING MEDICAL EXPENSES
5) IGNORED THE TIME TO PURCHASE AND NOW FEEL EXPENSIVE
5) LEAVE UNEARNED MONEY
6) THERE ARE SO MANY REASONS, BUT THESE ARE SOME OF ABSOLUTE REASONS
