Investing in pension funds quite depends upon your age. The strategy also depends on the amount that you have planned and the age from which you have started investing. Here are 10 points which are general to all age group no matter whether in 20’s or 40’s.
1. First things first, stay clear of debts. It is necessary to reduce the debt paying amount for future so that your future corpse amount can be secured.
2. Have a profile analysis before investment. You need to fulfill your current needs too. So in general 20% should go into pension scheme.
3. Once you reach your 40’s try to have an uninterrupted pension fund investment. Try to increase to 40 % if you have not saved any before for pension scheme.
4. Try to have a realistic scheme, too high amount as pension or too low amount will harm. The inflation rate should be kept in mind.
5. Try to have bonuses paid into your pension scheme in order to stay less pressurized during peak seasons.
6. Always try to reassess your pension scheme as your salary increases. Try to increase the amount every time and have a larger pension amount scheme if possible.
7. Always try to have the open market approach and go for the annuity which suits you the best.
8. Stay invested in the company pension plan. It is the best structured plan for the workers.
9. Start saving as soon as possible. The earlier you begin the better.
10. Keep your health premiums and health expenses in mind while you plan your pension scheme. It is one of the major expenses during old age.+