Why Choose SIP for Retirement Planning?

You already know that it’s important to be financially independent when you retire. That’s when they can truly be called your golden years.

If you have enough funds, you will not have to rely on others. And life after retirement can then be worry-free; with plenty of opportunities to travel, pursue a pet project, or simply sit back to appreciate life’s little pleasures.

To do this, you need to start early, and you need to have a plan. The best financial plans for retirement are those that are relatively risk-free and are flexible enough to suit your changing needs.

That’s why you should consider a Systematic Investment Plan for retirement. This is a facility offered by mutual funds under which you don’t need to invest a lump sum in one go. You can invest smaller amounts at regular intervals. Most people go for a monthly SIP for retirement.

In this way, you can get all the advantages of mutual fund investment in an organised way over time. This will enable you to build an adequate corpus for retirement. That's the advantage of a SIP pension plan.

A Look at SIPs Retirement Plan in Action

If your monthly expenses today are INR 50,000 per month, and your retirement is 30 years away, what will the monthly figure be at that time? Taking a moderate inflation rate of 7% per annum, you will need close to INR 4 lakhs per month after retirement to retain your current lifestyle.

This may seem like a large figure, but there is no need for concern. If you start investing early, you will be able to reach your target with the benefit of a SIP retirement plan.

Regardless of your current income, SIPs are affordable because you can set aside a small amount every month for investment. As your income grows, you can increase this amount. You can even change the mix of funds over time to reduce the risk.

There are other advantages, too. Many people fear that if they invest a lump sum, they stand to lose should the market dip. With a SIP, however, this risk is minimised because only a part of your funds is exposed to this risk. And long-term returns have been shown to easily beat the rate of inflation.

Another benefit is that you can get considerable tax benefits if you choose to invest in equity-linked savings schemes. This means there’s additional money in your kitty to save or spend.

At Sykes & Ray Equities, You’ll Get a Tailor-Made SIP for Retirement

When you come to SRE for advice, you’ll discover that our approach revolves around our clients. This is something we’re proud of.

We’re one of the pioneers in investment and retirement planning, with a wealth of experience of over 30 years. This has helped countless investors reach their targets.

We’ll only recommend SIPs after talking to you about your goals, your possibilities, and your capacity to take risks. It’s after such discussions that we will suggest the right mix to create the best SIP for retirement.

Our motivating principle is to put the client’s needs and targets first. It is this attitude that has helped us to garner a respected name in the investment community. Get in touch with us to discover how the right retirement plan can enrich your retirement years.