Four pillars of retirement income planning in develop countries:
- Social security
- A social security program that provides retirement benefits as well as survivor and disability benefits.
- Employment based plan :
- Retirement plans available to individuals through their public, private, or not-for-profit employers, Defined Contribution plans, such as 401(k) and profit-sharing plans, Defined Benefit pension plans, stock option plans
- Personal Retirement Assets
- Pension Plans, Annuities, Bank deposits, Mutual funds, Individually held securities, Life insurance & Others.
- Retirement Choices :
- Lifestyle and financial choices that play a significant role in retirement security
- When you would like to retire? ( Early Retirement, Timely Retirement, Late Retirement, Semi Retirement , Part time job)
- Where you want to retire? (Place of retirement, metro city, town, village)
- How your retirement lifestyle should be? (Lavish, moderate or conservative)
In India, only two of the above pillars exist, i.e.
- Personal retirement assets
- Retirement choices.
While drawing your retirement plan, one should keep this in mind and also be aware that they are self dependent.