Retirement Plans: Saving for your twilight years!

Published in Accounts & Savings

None of us likes to admit it, but the fact is that none of us are getting any younger. Thus, instead of burying our heads in the sand, we should be squaring up to senior citizenship and increasing longevity and sort ourselves out with a sensible retirement plan. We need to look carefully at our bank balances and decide what to do with our cash.

A retirement plan is a financial plan linked to savings and investments whose purpose is to provide the saver with a source of income after they have finished working.  It’s not enough just to think about day-to-day financial needs, you also need to take into consideration lifestyle choices and other expenses you may occur.

In Lebanon, Lebanese banks usually sell retirement plans that are linked to savings plans, rather than just a savings account. A saving account differs from a saving plan in the insurance coverage provided as well as the mandatory periodic deposits. This means that the client benefits from not just the accruement of regular deposits, but also from a life insurance policy in case of death before his retirement.

 

Like any saving plan, there are pros and cons:

Pros

Cons

  • Savings plans take a lot of the leg work out of saving for the future as you’re forced to save money due to the mandatory periodic deposits.

  • Life Insurance is also included. This means if you die, your beneficiaries will receive the sum insured or your total savings, whichever is bigger.

  • You may access your funds if urgently needed, however penalty may apply depending on the bank and the insurance company’s policies.

  • Not all the costs you pay are added to your savings as the insurance policy’s premium is settled from the periodic deposits.

  • The insurance company’s profits affect your interest rates earned, although some plans guarantee a certain minimum interest rate.

  • Plans are usually long term – not ideal if you want to see a quick return.



For more information on finding and comparing retirement plans at Lebanese banks, visit Bnooki.com.

23 Jan 2015
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Retirement Plans: Saving for your twilight years!

None of us likes to admit it, but the fact is that none of us are getting any younger. Thus, instead of burying our heads in the sand, we should be squaring up to senior citizenship and increasing longevity and sort ourselves out with a sensible retirement plan. We need to look carefully at our bank balances and decide what to do with our cash.

A retirement plan is a financial plan linked to savings and investments whose purpose is to provide the saver with a source of income after they have finished working.  It’s not enough just to think about day-to-day financial needs, you also need to take into consideration lifestyle choices and other expenses you may occur.

In Lebanon, Lebanese banks usually sell retirement plans that are linked to savings plans, rather than just a savings account. A saving account differs from a saving plan in the insurance coverage provided as well as the mandatory periodic deposits. This means that the client benefits from not just the accruement of regular deposits, but also from a life insurance policy in case of death before his retirement.

 

Like any saving plan, there are pros and cons:

Pros

Cons

  • Savings plans take a lot of the leg work out of saving for the future as you’re forced to save money due to the mandatory periodic deposits.

  • Life Insurance is also included. This means if you die, your beneficiaries will receive the sum insured or your total savings, whichever is bigger.

  • You may access your funds if urgently needed, however penalty may apply depending on the bank and the insurance company’s policies.

  • Not all the costs you pay are added to your savings as the insurance policy’s premium is settled from the periodic deposits.

  • The insurance company’s profits affect your interest rates earned, although some plans guarantee a certain minimum interest rate.

  • Plans are usually long term – not ideal if you want to see a quick return.



For more information on finding and comparing retirement plans at Lebanese banks, visit Bnooki.com.

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