In continuation to my retirement Planning Series, this is second article. If you have not read first pls click here to read first before reading this second one…

Important factors in Retirement Planning of service class:

1. Normal Retirement: The age set forth in a retirement plan for employees to receive full benefits upon retirement. Retirement before the normal retirement age may result in a reduction in benefits. Most plans specify 65as the normal retirement age.
2. Early Retirement / VRS: A retirement plan provision which allows an employee to retire before the company’s official retirement age. Generally, if an employee elects to exercise this option, he or she can expect to receive fewer benefits than if the employee had waited until the official retirement age.
3. Delayed Retirement: Delay in retirement from the age specified due to non accumulation of the required corpus.
4. Taxation on Retirement benefit: Some benefits available are tax exempted up to certain extent while others are fully taxable.
1. No Occupational retirement benefit: To a self employed or business person the benefits that are available to service class such as gratuity, P. F. and pension are not available.
2. Uncertainty of business or profession: As the business or profession is subject to market risks which are beyond his control.
Health Issues: Health related problem can always affect can always affect and hence the income and there by the retirement corpus.

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