Life is full of milestones. Some are easy to achieve and bring a lot of joy to our lives. Other milestones, such as retirement, come after a lifetime of hard work, savings and struggles to provide your family with everything they need.

That said, it takes considerable planning for retirement to ensure that this phase of your life is stress-free and financially secure. Retirement financial planning is made up of different stages. Keep reading as we delve into will explore the three stages of retirement planning as well as a few MetLife options to make the process easier.       

Understanding Retirement Planning

Understanding the key aspects of retirement planning will ensure that you have the best options in place to build the necessary financial portfolio to provide you with retirement income. What is retirement planning? Why is it important? Keep reading to find out.

What is Retirement Planning?

The term retirement planning refers to the way you plan for your financial security when you retire. It involves planning and saving a significant amount of money from a much younger age. Choosing the right retirement savings plan is also crucial to achieving your future financial goals.

Why is Retirement Planning Important?

When you become a retired person, it becomes increasingly difficult to maintain the quality of life that you may have become accustomed to. This is especially the case if you haven’t built a financial portfolio before the time. Planning for retirement will ensure that you have the necessary funds available when you need them.

3 Stages of Retirement Planning

Essentially there are three fundamental stages of retirement planning. Knowing what they are, where you fit into each one and understanding what you should be doing during each stage will help keep you on track.

Young Adulthood (Ages 21-35)

During the young adulthood stage, it may be difficult to invest money in extensive insurance policies. This is usually because they are focusing on starting a family or buying a home. However, an investment that’s made during this phase can easily create an investment portfolio that has ample time to mature.

It’s important to remember that the amount you invest during this phase doesn’t have to be a large amount. Courtesy of compounding, the smallest amount will eventually make a significant difference.

Early Midlife (Ages 36-50)

Early midlife comes with a variety of challenges such as credit card debt, student loans, mortgages and even insurance premiums. During this stage, it’s essential to continue saving money in the form of retirement investments. By this time you may also be part of an employer’s pension plan. If that’s the case, it’s worth noting that these plans often don’t keep up with inflation the way specialized retirement policies do.

During this stage of your life, it’s also necessary to ensure that you have adequate health care policies in place. This will reduce the likelihood that any unforeseen health issues drain your savings or put you in severe debt.

Later Midlife (Ages 50-65)

In this phase, it’s necessary to know that time to create a significant financial portfolio is running out. Additionally, the advancements in modern medicine have increased the average person’s life expectancy quite considerably. That means it’s necessary to plan for a longer life.

If you haven’t invested money into a retirement plan, the good news it is never too late. Starting late just means that you will have to opt for a plan with higher premiums. Speak to your financial associate to find the right plan for this stage of your retirement planning journey.

Steps to Retirement Planning

No matter what age group you fall into, the concept of retirement planning can sound very daunting if you’re approaching it for the first time. Fortunately, the good news is that getting the right plan in place is considerably easy when you follow the right steps. We’ve listed our guidelines.

Come Up With a Plan

When you’ve decided it’s time to start focusing on your retirement income, the best option is to decide how you’re going to build the financial corpus needed. It’s important to keep in mind that investment plans are more lucrative than savings plans.

Decide How Much You’ll Set Aside Each Month

Use the MetLife online calculator to determine the amount of money you’ll need by the age of retirement. This will help you narrow down the minimum amount you need to set aside every month.

Choose the Right Accounts for You

The marketplace is full of different policies and plans which may make choosing the best one challenging. Speak to a financial associate about the MetLife retirement plan “LifeLine” which will provide you with the future income you need.

Check on Your Investments Frequently and Make Periodic Adjustments

It’s essential to regularly check on your investment and savings plans. This will ensure that your financial portfolio is building at the rate you were expecting. Regular checks will advise you in advance if you need to make policy changes or additions to achieve your financial goals on time.

Other Aspects of Retirement Planning

In addition to the above-mentioned steps to creating an effective retirement plan, there are a few additional aspects to consider. We’ve listed them for your convenience.

Residential Planning

As part of your retirement planning it’s important to know that buying a home too late will mean you might enter your retirement with a house mortgage. While this isn’t a bad thing, but the mortgage premium will considerably reduce your monthly retirement income.

Wherever possible, increase your home premiums to avoid entering retirement with a huge debt. Another aspect that you need to consider while you’re factoring in your residential planning centers around estate planning. This refers to what will happen to your assets in the event of your passing.

Tax Efficiency

Tax efficiency is a positive aspect of opting for a retirement investment. As per the Bangladesh tax law, there are a host of different tax advantages on the premiums paid for retirement insurance policies.

Insurance Policies

In addition to regular retirement policies, it’s necessary to invest in other insurance policies. Choosing the right policies will ensure that you and your family are covered against any eventuality. The following policies hold the most value for savings, investments, healthcare and life insurance policies.

-          MetLife Fixed Deposit Protection Plan (MFDPP): An insurance policy with a one-time premium.

-          Endowment: A life insurance policy designed to protect against future financial uncertainties.

-          Three Payment Plan (3PP) Plus: This policy provides high insurance protection with active returns on your paid premiums.

-          Critical Illness Insurance Protection Plan (CIIPP): Healthcare insurance that protects you against 53 critical illnesses including stroke, cancer, first heart attack and kidney disease.

-          MediCare: A supplementary health insurance plan for the insured and their family that provides financial aid during hospitalization. This type of policy is an ideal plan to invest in as it will assist with various medical expenses that your work-related medical plan might not cover.

Start your retirement planning with MetLife Bangladesh

One of the easiest ways to start your retirement planning process is to consult with the experts at MetLife Bangladesh. “LifeLine” ensures that policyholders can have a comfortable retirement period where financial constraints aren’t an issue. With affordable premiums and a host of tax savings, this policy proves to be the best option to consider when you’re planning for your retirement phase. Retirement planning has never been easier!

Frequently Asked Questions (FAQ)

How do I start planning for retirement with the help of MetLife Bangladesh?

Saving for retirement doesn’t have to be complex. It’s as simple as following some guidelines.

-          Consult with a financial associate from MetLife to assist you with the right retirement calculations

-          Determine the amount of money you’ll need to invest to be financially secure

-          Compare retirement packages that will offer the optimum benefits

How much do you need to retire?

This amount will vary between individuals. Essentially it all depends on the type of lifestyle you want to maintain when you retire. A MetLife financial associate will easily be able to assist you with the right calculations to determine the amount of money to strive for.

When can I retire?

Well, it basically depends on your financial strength, the number of income generating investment/saving policies and even health insurance plans you have.  Individuals with robust retirement investments in place may even be able to retire considerably earlier.

How to choose retirement investments?

Choosing retirement plans involves the following:

-          Consider the amount you’ll need to retire comfortably

-          Assess your risk tolerance for various investments

-          Avoid insurance policies with high fees

-          Opt for retirement plans that have optimum benefits