Expenses are no more what they used to be some 15 years back. Though our incomes have seen quite a dramatic jump, the expenses too have caught up with the same. In fat some of the important costs like health care have become very expensive and the associated costs will continue to rise. With the costs of education also increasingly dramatically, the most crucial aspects have seen a rise in price which is well beyond the reach of common people. We seem to be living month-by-month!
The importance of pension has hence become paramount in all our lives. We are almost sitting ducks if we have no planned for our retirement at least ten to 15 years in advance. All of a sudden our incomes will dry up and with the sedentary life>
This is where the pension insurance can play a crucial role for us. If we plan well in advance, we can at least ensure that we can lead a satisfactory life once we retire. While most insurance companies in India have pension schemes on offer, LIC has launched a pension scheme for the un-organised sector. The plan is called Swalavlamban.
A good majority of Indians earn their living in the un-organised sector and the government needs to plan well in advance so that we start building a social security network which covers the whole of India.
Let’s hope we see more and more low cost insurance plans for which penetrate rural India in a much bigger way.