Why plan for retirement early?

Max Life Insurance Company Limited is a Joint Venture between Max Financial Services Limited and Axis Bank Limited.

Corporate Office :

Max Life Insurance Co. Ltd. 11th Floor, DLF Square Building, Jacaranda Marg, DLF City Phase II, Gurugram (Haryana) - 122002.

Operation Center :

Max Life Insurance Co. Ltd, Plot No. 90-C UdyogVihar, Sector 18, Gurugram (Haryana) - 122015.

Customer Helpline: 1860 120 5577 (9:00 A.M to 6:00 P.M Monday to Saturday) * Call charges apply.

Online Helpline - 0124 648 8900 (09:00 AM to 09:00 PM Monday to Saturday).

Fax Number:0124-4159397.

Email ids: service.helpdesk@maxlifeinsurance.com

Website: www.maxlifeinsurance.com

Max Life Insurance is integrated with licensed NBFC FinVu(Cookiejar Technologies Pvt. Ltd. for sharing policy details with regulated Financial Information Users within the Account Aggregator ecosystem after obtaining the Policy holder's consent. Read more about Account Aggregator framework here.

*Life insurance coverage is available in this product. For more details on risk factors, Terms and Conditions please read the prospectus carefully before concluding a sale. You may be entitled to certain applicable tax benefits on your premiums and policy benefits. Please note all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. Tax benefits are subject to changes in tax laws. Trade logo displayed belongs to Max Financial Services Ltd. and Axis Bank Ltd. respectively and with their consents, are used by Max Life Insurance Co.

Insurance is the subject matter of solicitation. For more details on the risk factors, Terms and Conditions, please read the sales and rider prospectus carefully before concluding a sale. Tax benefits are eligible for tax exemption on fulfilling conditions mentioned under Section 10(10D) of income tax act 1961. Tax exemptions are as per our understanding of law and as per prevailing provisions of income tax at 1961 . Policy holders are advised to consult tax expert for better clarification /interpretation. Please note that all the tax benefits are subject to tax laws at the time of payment of premium or receipt of policy benefits by you. Tax benefits are subject to changes in tax laws. The monthly Income Benefit and Terminal Benefit may be taxable subject to extra premium being loaded at underwriting stage.

Disclaimers for Market Linked Plans & Saving plans:

THE UNIT LINKED INSURANCE PRODUCTS DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICYHOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF FIFTH YEAR.

Unit Linked Insurance Products (ULIPs) are different from the traditional insurance products and are subject to the risk factors. The premium paid in the Unit Linked Life Insurance Policies is subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Max Life Insurance is only the name of the insurance company and Max Life Online Savings Plan (UIN: 104L098V05) is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects or returns.

Max Life Online Savings Plan is a Unit Linked Non Participating Individual Life Insurance Plan (UIN104L098V05)

*#Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your Insurer carrying on life insurance business. The assumed rates of return (4% p.a. and 8% p.a.) shown in the illustrative example are not guaranteed and they are not the upper or lower limits of what you might get back as the value of your Policy depends on a number of factors including future investment performance. The guaranteed and non-guaranteed benefits are applicable only if all due premiums are paid.The Maturity Benefit shown in the illustrative example are inclusive/exclusive of taxes.

^*Disclaimer: Applicable for Titanium variant of Max Life Smart Fixed-return Digital (Premium payment of 5 years, Policy term of 10 years) and a healthy female of 18 years old paying Rs.3,60,000/- annually (exclusive of all applicable taxes)

Privacy Policy

^^On completion of policy term

The savings indicated is the maximum premium difference as compared with offline plan & depends on the variant purchased.

^*All claims that qualify for InstaClaim™ will be paid within 1 working day from date of submission of all mandatory documents else Max Life will pay interest at Bank Rate as on beginning of financial year in which claim has been received (4.65 % p.a. for FY’20) for every day of delay beyond one working day. Interest shall be at the bank rate that is prevalent at beginning of the financial year in which death claim has been received.

Claims for policies completed 3 continuous years. All mandatory documents should be submitted before 3:00pm on a working day.Claim amount on all eligible policies4 is less than Rs. 1 Crore. Claim does not warrant any field verification.Mandatory Documents :> Original policy document > Original/attested copy of death certificate issued by local municipal authority > Death claim application form (Form A) > NEFT mandate form attested by bank authorities along with a cancelled cheque or bank account passbook along with nominees photo identity proof > Discharge/Death summary attested by hospital authorities or FIR & Post Mortem Report/viscera report (in case of accidental death)

7CMO Asia BFSI Excellence Award 2019

5Criteria applicable only for “Term plans” for Graduate, Indian resident with declared income >= 10 lacs with CIBIL score >= 650 (salaried) and >= 700 (self-employed) with no disclosed medical condition

4InstaClaim TM is available for all versions of (UIN:104N118V04). Mandatory Documents : • Original policy document • Original/attested copy of death certificate issued by local municipal authority • Death claim application form (Form A) • NEFT mandate form attested by bank authorities along with a cancelled cheque or bank account passbook along with nominees photo identity proof • Discharge/Death summary attested by hospital authorities or FIR & Post Mortem Report/viscera report (in case of accidental death)

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Tax conditions :

3The discount is applicable if you are a salaried employee with a corporate. During policy issuance, Max Life may call for proof of employment if required. In case proposer when asked is not able to prove the employment part, discount offer will be discontinued and additional premium as applicable will have to be paid for processing of the case.

CI Rider disclaimers:

MAX LIFE CRITICAL ILLNESS AND DISABILITY RIDER (UIN- 104B033V01) available as a rider on payment of additional premium.

>Extended cover of up to 85 years is available with gold and platinum variant only

@ 64 critical illnesses covered in platinum and platinum plus variant on payment

22 critical illnesses covered in gold and gold plus variant

6 The life insurer is eligible for a discount on renewal premium under regular pay variant by accumulating Healthy Weeks as per terms and conditions of the rider

*^Total premiums paid inclusive of any extra premium but exclusive of all applicable taxes, cesses or levies and modal extra. Return of premium option is available on payment of additional premium.

~ C onditions for premium break : Available at an additional premium for policies with policy term greater than 30 years and premium payment term greater than 21 years. Option to skip paying premium for 12 months. 2 premium breaks will be available during the premium payment term separated by an interval of at least 10 years

~1 Conditions for Special exit value:

Option to receive all premiums paid back, at a specified point in the term of the policy (free of cost). Available when Return of Premium variant is not chosen. No additional premium to be paid.

~2 Voluntary Top-up Sum assured:

Option to double your insurance cover, basis underwriting, at the time of your need by increasing your sum assured up to an additional 100% of base sum assured, chosen at inception

^^*^^Free look period conditions:

The policyholder has a period of 30 days from the date of receipt of the policy document, to review the terms and conditions of the Policy, where if the policyholder disagrees to any of those terms or conditions, he / she has the option to return the Policy stating the reasons for his objections. The policyholder shall be entitled to a refund of the premiums paid, subject only to deduction of a proportionate risk premium for the period of cover and the expenses incurred by the company on medical examination of the lives insured and stamp duty charges.

^Individual Death Claims Paid Ratio as per IRDAI Annual Report FY 2021-2022

8https://www.moneycontrol.com/news/business/economy/buy-term-insurance-now-as-rates-may-rise-from-april-1-4930921.html

2Total premium will be charged at the time of the policy issuance (subject to underwriting’s decision).

3The guaranteed benefits are available with selected life insurance plans & are applicable if all due premiums are paid

4Tax benefits as per prevailing tax laws, subject to change

Terms and conditions for availing 5% employee discount:

1 The 5% employee discount will be refunded to you once your policy is issued. Submit your documents for getting your policy issued and get 5% employee discount

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The percentage savings is for a regular pay Max Life Smart Secure Plus Plan ( A Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan, UIN - 104N118V04)– Life Option for 1 cr life cover for a 35 year old, non-smoker male for a policy term of 40 years vs a 10 year policy term with the same details’

~*Standard premium for 24-year old healthy male, non-smoker, 25 years policy term,25 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan (UIN:104N118V05)

**Healthy non-smoking male, 24 years, 2 cr cover,25 years policy term,25 year premium payment term, exclusive pf GST for Max Life Smart Secure Plus Plan (UIN:104N118V05)

~~Healthy non-smoking male, 24 years, 1 cr cover,25 years policy term,25 year premium payment term, exclusive pf GST for Max Life Smart Secure Plus Plan (UIN:104N118V05)

Max Life Smart Wealth Plan| A Non-Linked, Non-Participating, Individual Life Insurance Savings Plan| @Rs.9,68,800/- as lump sum at the end of 15 years, for 35 years old healthy male.

ARN - ARN/Web/01/21042021

Past performance of the investment funds do not indicate the future performance of the same. Investors in the Scheme are not being offered any guaranteed / assured returns.The premiums & funds are subject to certain charges related to the fund or to the premium paid.

The premium shall be adjusted on the due date even if it has been received in advance.

For Total Installment Premium -**Total Installment Premium is the Premium payable as per premium paying frequency chosen, it excludes GST and applicable taxes, cesses or levies, if any; and includes loadings for modal premiums, Underwriting Extra Premium and Rider Premiums if any.

For Return of Premium -~The Return of Premium Option is available on payment of Additional Premium. Premium does not include amount paid for riders and is excluding taxes, cesses and levies. Upon Policyholder's selection of Return of Premium variant this product shall be a Non-Linked Non-Participating Individual Life Insurance Savings Plan.

For Riders -#Applicable Rider available on the payment of Additional Premium is Max Life Critical Illness and Disability Rider | Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Rider |UIN: 104B033V01 . Critical Illness and Disability Rider variant opted is Platinum Plus which covers 64 critical Illnesses. The rider cover will only be paid in scenarios where customer is diagnosed with listed 64 critical illnesses or total and permanent disability. Rider will terminate after major critical illness claim is paid to the policyholder. In case customer requests for cancellation of rider only, the solution as a whole will be cancelled and not just the individual rider.

For Additional Benefits -##On Payment of Additional Premium. The accident cover will only be paid in scenarios where death occurs due to accident.

*~Disclaimer | Max Life Smart Secure Plus Plan. A non-linked non-participating individual pure risk premium life insurance plan |Benefit available with special exit value -Total premium paid inclusive of any extra premium but exclusive of all applicable taxes, cesses or levies & modal extra. The premium calculated as per Standard premium for 30 year old healthy male, non-smoker, 40 years policy term, 40 years premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan.

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Applicable for Titanium variant of Max Life Smart Fixed-return Digital plan (Premium payment of 5 years and Policy term of 10 years) and a healthy male of 18 years paying Rs. 20,000/- per month (exclusive of all applicable taxes) with 7.50% return. Life Insurance is available with this product.

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Policy continuance benefit is not available with lifelong wealth variant. **The accrued income will be accumulated on an annual basis at the prevailing reverse repo rate (publish on RBI’s website).

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With “Save the date”, you can choose to take your annual income to any special date in a year.

***Available with early wealth variant. Income benefit will be paid as per selected plan terms.

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Accidental death benefit is available in call variants except for Single premium variant. Life insurance coverage is available in this product.

#~

Term Insurance plan bought online directly from Max Life Insurance has no commissions involved.

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Max Life Smart Secure Plus Plan, A non-linked non-participating Individual Pure Risk Premium Life Insurance Plan| Standard Premium for 30 year old healthy male, non-smoker, 40 years policy term, 40 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan| ~1 Conditions for special exit value: Option to receive all premiums paid back, at a specified point in the term of the policy (free of cost). Available when Return of premium variant is not chosen. No additional premium to be paid. Option to receive all premiums back (exclusive of GST). Flexibility of exiting the plan early. Special Exit Value cover applicable till age 68 & above (of your age). T&C Apply.

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Applicable for Titanium variant of Max Life Smart Fixed-return Digital plan (Premium payment of 5 years and Policy term of 10 years) and a healthy male of 18 years paying Rs. 20,000/- per month (exclusive of all applicable taxes) with 7.50% return. Life Insurance is available with this product.

**

Max Life Critical illness and Disability (UIN- 104B033V01) available as a rider on payment of additional premium. 64 critical illnesses covered in platinum and platinum plus variant on payment.

*

Available on Payment of Additional Premium. The accident cover will only be paid in scenarios where death occurs due to accident.

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Available with Max Life Smart Wealth Plan (UIN: 104N116V08)

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Available with Max Life Smart Fixed-return Digital Plan (UIN:104N123V03). The guaranteed benefits are available with selected life insurance plans & are applicable if all due premiums are paid.

**Disclaimer: Standard premium for 24-year old healthy male, non-smoker, 25 years policy term,25 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan (UIN:104N118V05) with a life cover of Rs. 50 lakh.

**Disclaimer: Standard premium for 24-year old healthy male, non-smoker, 25 years policy term,25 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan (UIN:104N118V05) with a life cover of Rs. 75 lakh.

A friend of mine, we'll call him John, recently wanted to know why retirement planning is important.

Perhaps you've pondered the same question.

John is well educated and enjoys a successful career. Like many people, John is busy and simply didn't feel like there were enough hours in the day to tackle one of the most important decisions in his life.

A lack of time and a feeling of being overwhelmed is what made him hesitate about tackling retirement planning in the first place.

If you are like John and lack the time you need, be sure to download our bonus package that includes 15 of the best retirement checklists available. They are they same checklists we use with actual clients.

→Free Download: 15 Free Retirement Planning Checklists to Help Make Your Money Last

As John quickly found out, there are a lot of reasons why retirement planning is important for just about everyone - regardless of education or wealth.

For starters, retirement can last a lot longer than you think. According to Money Guide, a 65-year-old married woman today has a 50% chance of living to age 90!

SPECIAL NOTE FOR INDIVIDUALS AGED 50+ WITH OVER $1 MILLION: Tying your $1 million+ portfolio to your retirement and tax plan can be hard. If you are interested in learning how we can help fully integrate taxes, investments, and retirement income planning, click here for a free retirement assessment. Get more ideas than you thought were possible.

That means it’s entirely possible your post-career phase lasts 25 years or more. Your life expectancy may be a lot longer than you anticipate.

That’s great news if you’re well prepared. But, if you’re retirement planning is a priority, living longer can be a little terrifying.

The fact is, the average Social Security check in 2022 is only about $1,550 per month, which isn’t nearly enough to maintain pre-retirement standards of living for many individuals. Social security benefits simply don’t provide the income necessary for a comfortable retirement.

Medicare, which is the primary insurer for seniors in retirement, doesn’t cover the healthcare costs many seniors will encounter as they age.

Someone turning 65 this year has a 70% chance of needing long-term nursing care; women, on average, need over three years of supportive care as they approach the end of life. Only 20% of today’s 65-year-olds won’t need long-term supportive care.

It’s more important than ever to have a realistic retirement savings goal and a solid plan for achieving it.

With the help of a free retirement checklist and a fiduciary financial advisor to help guide your decisions, you stand a much better chance of retiring comfortably—and maximizing your sources of income so you can live the life you want.

So why is retirement planning important? Here is an easy to understand infographic to help you see nine powerful reasons why you should consider getting started on your retirement planning.

→Free Download: 15 Free Retirement Planning Checklists to Help Make Your Money Last

You probably know a lot about many things in life.

But, when it comes to retirement planning, there are literally thousands of factors that can impact your ability to maintain financial security.

Hopefully, you'll only retire once. But, this also means you lack the experience necessary to identify critical questions and answers that can contribute to a successful retirement.

Retirement planning can help fill in the gaps and answer key questions.

Click on any of the links below to gains free access to powerful retirement planning checklists.

Money problems are a major source of stress. According to the American Psychiatric Association, over 70% of adults worry about money, and that can take a toll on your physical health.

Financial stress is linked to physical conditions such as diabetes, heart disease, migraine headaches, and poor sleep. Not only that, money worries can cause anxiety and depression, robbing you of peace of mind to enjoy your life today.

Taking steps today to get your retirement planning on track is an important step in your overall financial wellness—which can only be good for your physical and emotional health.

No one likes paying more taxes than necessary.

Unfortunately, retirement is a period when taxes can destroy a major part of your income and savings if you aren’t careful. Avoiding those taxes is a major reason why retirement planning is important.

Your tax strategy for retirement should start during your working years. But the tax strategies you use while working will change drastically once you retire. Both are important, but how you approach them is very different.

SPECIAL NOTE FOR INDIVIDUALS AGED 50+ WITH OVER $1 MILLION: Tying your $1 million+ portfolio to your retirement and tax plan can be hard. If you are interested in learning how we can help fully integrate taxes, investments, and retirement income planning, click here for a free retirement assessment. Get more ideas than you thought were possible.

When you are working, your income is relatively stable and you may not have control over your income sources. As a result, finding deductions and tax credits to reduce your taxable income is paramount.

If you are still building your retirement savings, contributions to your employer’s 401(k) plan can lower your taxable income, saving you money right off the top. If you don’t have an employer plan, you may be able to deduct your qualifying IRA contributions up to the annual limit ($6,000 in 2022, or $7,000 if you’re age 50 or over).

If you'd like to download additional important tax, savings, and investment information for 2023, click here.

You may also want to consider building a tax-free savings bucket with a Roth IRA, back-door Roth IRA, or even a Mega-Back Door Roth IRA.

Lower earners may even qualify for the Saver’s Credit to further reduce your tax bill. Depending on your adjusted gross income and filing status, you could earn a tax credit of between 10% and 50% of your retirement savings contributions.

You’ll also want to know how to reduce your Virginia income tax or your respective state income tax.

Upon retirement, the more control you have over your income sources, the more likely you will be able to reduce your taxes. If planned appropriately, you’ll want to have three buckets or sources of income in retirement from a tax standpoint:

Since it’s impossible to predict tax policy in the future, diversifying your income sources in retirement could save you tens of thousands of dollars in taxes upon retirement.

As you can see, reducing taxes is an excellent reason why retirement planning is important.

Life hands you a lot of important questions as you get older. More often than not, the answers aren’t always black and white.

For example:

These life decisions have a major impact on your finances and can’t—or shouldn’t—be made in a vacuum. Knowing where you are with your retirement plan gives you essential context to make big decisions with confidence.

Making better financial and life decisions is another major reason why retirement planning is important.

It’s no surprise that money issues are a leading cause of divorce.

Mismatched financial priorities, high levels of debt, and the inability to work toward a common financial goal all cause marital strife.

When you and your spouse are on the same page with retirement planning, you eliminate some major sources of discord in your marriage.

Take money out of the retirement equation and you can focus your efforts on more exciting decisions—such as where you want to retire.

Hiring a financial advisor who can provide objective, non-emotional counsel may do wonders for your marriage. Maintaining a healthy relationship with your spouse can be a great reason for why retirement planning is important.

→Free Download: 15 Free Retirement Planning Checklists to Help Make Your Money Last

Retiring at 55 is great when it’s part of your plan; being forced out of your job early isn’t. Unfortunately, nearly half of all current retirees aren’t retired by choice. Most were laid off or forced to leave their jobs, and a smaller number had to leave work prematurely to care for an ill or aging parent or spouse.

If you have to leave work before you’re expected retirement age, you’ll be in a much better position if your retirement plan is already in place.

You might not have your nest egg completely built up, but having money set aside for retirement gives you more options and time to adjust your plans if you need to retire early.

Have you heard of the “sandwich generation?”

That’s the name for the group of people who are simultaneously supporting their children and one or both parents.

About 44% of middle-aged adults with children at home have at least one living parent who could potentially need care; 15% are full-fledged members of the sandwich generation who financially support both parent(s) and children.

SPECIAL NOTE FOR INDIVIDUALS AGED 50+ WITH OVER $1 MILLION: Tying your $2 million portfolio to your retirement and tax plan can be hard. If you are interested in learning how we can help fully integrate taxes, investments, and retirement income planning, click here for a free retirement assessment. Get more ideas than you thought were possible.

A comprehensive retirement plan includes saving for medical costs and potential long-term care costs. When you know your expenses are covered, you won’t have to rely on your family to fill the gap.

A good retirement plan not only keeps you from being a burden to your kids, it gives you the resources to be an amazing grandparent.

Wouldn’t it be nice to take the entire brood on an annual trip or host your whole family at your spacious vacation home every year?

Even if your grandparenting goals are a bit more modest, having adequate income means you can visit more often and be present for all their milestones and special events.

It gives you the resources to buy those special birthday gifts or help cover the costs of their college tuition. Money won’t be an obstacle to a close relationship with your grandchildren.

Most people cut their living expenses in retirement but continue their habits of charitable giving, according to a recent study. We see this a lot with our clients.

If you’ve been a generous giver during your working years, it’s probably important to you to continue supporting your church and favorite charities once you leave your job.

Financial planning for retirement can optimize your charitable giving three ways:

While beyond the scope of this article, a qualified charitable distribution strategy can be a powerful strategy to help maximize your charitable donations and reduce taxes!

Download Now: Essential retirement checklist for more helpful tips and considerations to retire with confidence - new for 2023!

Few things are more frightening than the thought of outliving your resources. Even a seemingly adequate portfolio can be inadequate for your needs if it’s not managed properly, especially if market conditions change.

Retirement planning is important because it can help you avoid running out of money in retirement.

Your plan can help you calculate the rate of return you need on your investments, how much risk you should take, and how much income you can safely withdraw from your portfolio.

Working with a financial advisor who specializes in retirement income planning means you’ll have the right amount saved when you finally leave work—and that your assets will be managed in a way that protects you against the unexpected so you’re never caught short in a downturn.

That’s the ultimate peace of mind.

→Free Download: 15 Free Retirement Planning Checklists to Help Make Your Money Last

As you can see, there are many reasons why retirement planning is important.

Achieving your retirement goals takes a proactive approach. If you start planning for retirement early, the better off your retirement will be in the future. If you are nearing retirement, there literally dozens of strategies available to help you make the most of your next 25 years or more.

At Covenant Wealth Advisors, we believe retirement planning is an essential part of your financial wellness. Working together, we help you clarify your expenses, prioritize your goals, and build a portfolio of assets that sustains a long and fruitful retirement. We are independent, fee-only Certified Financial Planners, which means you get unbiased advice and recommendations that align with your values.

We are independent Certified Financial Planners who operate on a fee-only basis; meaning we never receive commissions for product sales. Additionally, we serve as a fiduciary which means we are required by law to always put your best interests and objectives at the forefront. We can help you find the right retirement strategies to conserve your wealth and the right investments to achieve your goals.

We specialize in helping individuals age 50 plus with retirement income planning and investment strategies.

If you’re not sure where you are when it comes to retirement—or want to refocus your efforts — Schedule a free retirement assessment to see how we can help make your life better.

About Mark Fonville, CFP®

Mark specializes in help individuals aged 50+ plan, invest, and enjoy retirement with confidence.

He a Certified Financial Planner with Covenant Wealth Advisors has been featured in the New York Times, Kiplinger Magazine, and the Chicago Tribune. Forbes ranked Mark as one of the Best-In-State Wealth Advisors in Virginia.

Schedule a free retirement assessment

Disclosures: Covenant Wealth Advisors is a registered investment advisor. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like accounting, tax or legal advice, you should consult with your own accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place.

The RVA25 is an annual survey performed by Richmond BizSense. Companies profit and loss statements were reviewed by an independent accounting firm, Keiter CPA, and analyzed for three year revenue growth end December 31st, 2019. The top 25 fastest growing companies were chosen as recipients of making the RVA25 list. No fee or compensation was provided to Richmond BizSense or Keiter CPA for participation in the survey.

Here are five indicators you are ready to retire early:

Paying regular EMIs in retirement can be particularly straining when you have a limited retirement income from your savings and investments. So, it is a good idea to settle all your debts like loans, mortgages, credit card dues, etc., before you decide to retire. It is also important to note that early retirement is not restricted to the retirement age alone. The FIRE movement is also about being financially free and independent. This can only be achieved when you are debt-free and do not owe anybody any money.

However, if you have some loans, try to see if these liabilities can be turned into assets. For instance, home loans or student loans can offer tax benefits and work in your favor. You can claim tax benefits on your home loan’s interest under Section 24 and Section 80 EE of the Income Tax Act, 1961. However, a personal or car loan will not only not have any tax benefits but will just be a liability on you in retirement.

So, look at your debt from all perspectives and see if it is a liability or an asset. Accordingly, you can either stick to an early retirement plan or postpone it by a few years till you are completely debt-free.

As per the PGIM report, most Indians do not have a ‘retirement fund.’ Ideally, if you wish to retire earlier than the traditional retirement age, you need to save and invest more aggressively, as the time horizon is considerably shortened.

People who retire at the age of 60 typically save for at least 20 to 25 years. If you wish to retire early in your 40s or 50s, you will need to add the extra number of years and plan for a long retirement period that could last for 30 to 40 years or more as the life expectancy steadily rises. It is important to consider these factors and know how long your retirement will last to arrive at a tentative figure for your retirement corpus.

Let us take the example of Sam, a 25-year-old considering retiring at the age of 40. His monthly expenses amount to Rs. 40,000 in 2021. Assuming an inflation of 6% per annum, when he turns 40 in 15 years, his monthly expenses will approximately be Rs. 95,862 in the year 2036. Moreover, inflation will also rise after he retires. So, his retirement corpus will reflect all of this.

This is how Sam’s monthly expense will grow-

If Sam requires Rs 11.5 Lakh as yearly expenses at the age of 40, this expense figure is likely to get inflated/increased till he reaches 90 owing to economic inflation, if he wishes to maintain the same lifestyle. Hence, his calculation for the retirement corpus must include the inflated expenses each year.

Do keep in mind that no one fixed amount can suit all retirees since it is based on your health conditions, lifestyle, current savings & liquidity, and other means of income, amongst other factors. Retirement plans can help you achieve your savings goals, but it is important to pick the right savings and investment product for early retirement. In this context, investment schemes like NPS and retirement mutual funds can help you build a suitable corpus.

Healthcare expenses are the most important yet ignored part of a budget. This can be especially true in the case of early retirees. One of the upsides of early retirement age is that your health is still on your side. But this can also go against you as it gives you a false sense of relief that makes you want to skip planning for your future health expenses.

To give you a perspective, the cost of coronary bypass surgery in India is approximately Rs. 95,000 to Rs. 4,50,000 right now. Assuming a 10% healthcare inflation, this could cost you Rs. 15,06,994 to Rs. 71,38,392 in 2050. Keep in mind that health expenses can eat a large chunk out of your retirement corpus, and so it is crucial to plan for them efficiently.

If you are using an employer-sponsored health insurance plan today, you should get a personal cover for yourself as soon as you can for two reasons. Firstly, because the moment you quit your job, your health cover will also likely end. Secondly, employer-sponsored plans generally offer a low coverage amount and are not customized to your individual needs.

Buying health insurance early will help you save money as the premium is lower for younger people. If your spouse is uninsured, you can also consider purchasing a joint insurance plan or a family floater plan covering your parents, spouse, and children. Moreover, if you have a history of critical illnesses in your family, a critical illness plan may offer you more benefits. So, consider all options and pick a plan that can offer you the most value. Of course, your past health history & lifestyle will make an impact, but the starting age is the primary factor.

If your family members are dependent on you for financial assistance, you need to save separately for their needs. For instance, if your children are in school or ready to go to college, you will need an education fund to cover their expenses. These will not only be limited to the tuition fee but also travel, essential expenses, discretionary expenses, course-related equipment like cameras, laptops, etc. Your children’s marriage expenses are another head you will need to plan and save for.

In India, many people still live in joint families with their parents. Senior parents may require constant medical assistance. Medicines, insurance premiums, long-term care, etc., can add up to a lot. If your parents live with you, you will also need to account for their everyday expenses like food, electricity, groceries, etc. Moreover, if your spouse is financially dependent on you, their expenses, insurance costs, etc., also fall on your shoulders.An early retirement plan in India should be able to cater to all of these expenses.

For example, suppose Sam saved up Rs 7.5 Cr for his retirement needs and has a daughter who wants to study at Harvard University. In that case, he will have to stretch his retirement corpus more to accommodate his daughter’s education expenses. The cost of studying at Harvard University was an estimated Rs. 38,87,287.24 (51,925 USD) for the 2019-2020 session. In the next ten years, this could be Rs. 83,85,347, assuming a 6% inflation. So, the retirement corpus for Sam will change accordingly.

Your retirement income is limited as it comes from a systematic withdrawal plan from your investments. Hence, you must use it wisely. A budget can help you plan your withdrawals from your savings and investment accounts. But since your expenses are bound to change after you retire, this budget will not be the same as your pre-retirement budget.

Here are seven benefits of early retirement planning, which may interest you to start your retirement planning as soon as possible, if you do not have a retirement plan yet:

Tax benefits are one of the major advantages of having an early retirement plan. By investing your income in infeasible plans, you get to save some tax. Furthermore, retirement plans help you diversify your tax payments.

You do not need to liquidate your assets for a better retirement income. By investing in a retirement plan, you do not need to rely on your assets. Thus, early retirement planning can help you have a secure future.

By safeguarding your savings in the bank, you get minimal benefits. Investment options help you to maximize your profits by giving you better returns. Investing your money in retirement plans has a higher return than bank savings.

We have a common belief that by saving our income, we can build an adequate retirement corpus. However, that is an inefficient plan as we did not factor in the inflation rate. The power of compounding helps you have a better retirement corpus.

Learn why should you consider inflation when planning for retirement?

A retirement corpus helps you sustain unprecedented medical emergencies. By having a retirement plan, you can fall back on funds as and when required. Remember that with age, your medical expenses are bound to grow.

By having a concrete plan in place, you can support your dependents. Retirement plans act as a financial cushion and give your dependents financial security. You can ensure that there is no loss of income after retirement with smart financial planning.

To reap the maximum benefit of your retirement plan, you will have to begin early. The best choice for any early retirement plan is to begin investing in your early 20s. By doing this, you extend the tenure, and you can pay lower premiums.

However, if you begin in your late 20s or early 30s, you can make up for any shortfall by bridging the gap. Fix your retirement age and needs, and start investing in a retirement plan.

By investing in an early retirement plan, you financially secure your family members who are dependent on you. In addition, an early retirement plan will provide you with regular and concurrent income; as a result, you are unlikely to face any financial emergency.