• Financial Retirement,
• Lifestyle choices.

The former includes how much money has to be invested in the future to lead a secure and satisfied life with your soulmate beside, to comfort one’s thoughts, actions, and everything around, whereas the latter, involves questions like ‘Where to settle down?’, ‘when to quit altogether?’, etc. 

Retirement Planning is a topic that should be introduced in regular textbooks and curriculums besides other ordinary subjects to instill the concepts of ‘Wealth Management’ in each student from the time they are young. 

The process of retirement planning for different people changes with time, location, and mindset. The retirement planning of an Indian is way too different from the one in Canada or Mexico. This is because of the different laws, systems, and plans offered at different workplaces. 

There are different financial plans that retirement can be planned based on, like Mutual Funds, Bonds, Physical Assets, Stocks, Exchange Traded Funds, etc. 

What is Retirement Planning?

The whole process of Retirement Planning involves setting income targets and investing diligently in various investment plans to achieve a specific objective before one retires. 

If one wants his/her old age to be a bed of roses, making the best memories with their better half, children, and grandchildren, then one has to slog and set desirable financial targets from his early 20s till the fag end of 50s. 

Therefore, a meticulous choice of investment plans and investment advisors is very important to have one on the right path to having a secure life. 

Why is Retirement Planning important? 

Retirement Planning is very significant to ensure the same kind of lifestyle that one lives pre-retirement. Income from the investments made can be used to help oneself and the rest around when in need. 

The major importance of planning for a retirement investment is as follows, 

• To Address Unforeseen Contingencies

     Since the future is filled with major uncertainties like fragile health, demise of better half, emotional imbalance, and deteriorating physical health, only money can help one sustain. With the ballooning medical costs and expenses on medicines, it is important to opt for a meticulous plan that can cover all the uncertain expenditures that might arise for an individual and the spouse. 

• To Fight The Galloping Inflation

Inflation is always not going to be the same. The rate of inflation tomorrow is certainly going to be higher than what it is today. Anticipating changes in the economy and lifestyle is not always what an individual can do. When most of the things are out of control, saving for the future alone can be done efficiently. 

• Can be your grandchildren’s favorite people

It would be amazing to spend time and money for them by taking them on a vacation and hosting them with good food. Grandparents feel overwhelmed when the kids thank them for a gift. Money should never be an obstacle to getting close to loved ones and making them feel happy. 

• Social Investments

It is important to care for needy people around. One can trigger his generous instincts and give away a part of his savings to poor people and enhance their living standards. 

To find happiness in retirement and enjoy life to the fullest, money should never be a constraint. For this, financial planning is the most significant step. 

Which Retirement planning is the best in India?

With numerous pension plans available in a country like India, it is important to choose what suits an individual and save money in equal intervals so as to ensure a secure post-retirement life. Some of the retirement plans are listed below.

• Max Life Guaranteed Lifetime Income Plan
• SBI Life Saral Retirement Saver Plan
• LIC New Jeevan Shanti Plan
• BajajAllianz Life LongLife Goal
• India FirstLife Guaranteed Annuity Plan
• ABSLI Empower Pension Plan 
• Kotak Premier Pension Plan
• Tata AIA Guaranteed Monthly Income Plan
• LIC Jeevan Akshay –VII Plan

The above listed are the retirement investment plans offered by the private sector, there are abundant plans from the government sector too. Some of them are, 

• Atal Pension Yojana
• National Pension System
• Pradhan Mantri Vaya Vandana Yojana
• Varishtha Pension Bima Yojana
• Indira Gandhi National Old Age Pension Scheme

A note to consider here is that possessing a varied portfolio of retirement investments is very important to diversify the risks. Senior Citizens Savings Program, Post Office Monthly Savings Program, Debt Funds, and Tax-Free bonds are the best retirement investment portfolios in India. 

What Is The Process Of Retirement Planning In India?

Instead of taking big steps overnight. Taking baby steps towards accumulating a retirement corpus is more sensible. Though the process of retirement planning is a cakewalk, following a disciplined approach is a prerequisite. Some of the steps are listed below. 

• Determining The Age Of Retirement

Though the most common age of retirement is 60, most of them wish to retire early. On the other hand, most of the workaholics work after retirement. So getting to know the time frame and acting accordingly is very important. Also, based on medical history, it is important to anticipate the age till which one might live, not considering they one might die in a fatality. 

• Early Start For a Blissful Retirement

To not compromise on goals and have a smooth retirement, it is important to start off early. The early 20s till early 30s is the right time to think about building a retirement corpus. Some of the steps an individual should follow at this age are to Estimate a rough figure for retirement, Build a contingency fund, Take a Health Insurance policy, Regular investments, etc. 

• Calculate What An Individual Today’s investment would be Tomorrow. 

Understanding how the economy works is important to accomplish this step. The best way to save is to earmark a certain percentage of the earnings towards retirement and left undisturbed. To know this, one should understand what a Rate Of Return is and learn to obtain the figures. 

• Having A Watch On the Expenditure

An individual should learn to cut down on one’s unnecessary expenditures and be meticulous in accomplishing financial objectives. 

Seek Advice From A Financial Planner

Since retirement planning is an exhaustive and elaborate exercise, is it important to seek professional help. They will help an individual with the allocation of funds, streamlining investements and checking their relevance with regards to the current market.

Retirement Planning With Mutual Funds

Like how you think the love you show to people should be reciprocated back to you, the investment you make should give satisfactory returns. Return On Investment is the most important feature of the entire process of wealth creation. 

Mutual Funds are a form of retirement investment plan that exposes an individual to various assets and sub-asset classes. Prior data show that MFs are preferred by most senior citizens as a potential investment plan. 

If an individual had planned an investment where he had parked money in NIFTY 50 TRI through SIP, there would have been a CAGR of 10.3% and a corpus of 2.7 crores with a monthly investment of 1.2 lakhs. 

Retirement Planning Calculator In India

Calculating Retirement corpus has become a part and parcel of all people. Of late with a dynamic working environment and the business cycle, meticulous calculation of finance is very important. 

So of the benefits of learning the art of Calculating Retirement Planning are listed below

• Offers an overview of one’s financial condition
• Comparison can be drawn between different choices available in the market

Using a financial calculator in India doesn’t require much of one’s time and knowledge. If inputs are given, figures that have to be saved will automatically show up. 

Best Pension Plan In India

With a plethora of Retirement plans available in India, one might get confused about where to invest. At the same time, it is important to know where not to invest so as to not messing up the plan. Some of the best retirement plans in India are as follows

• Aditya Birla Sunlife Empower Pension Plan
• Aegon Life Guaranteed Plan
• Aviva Next Innings Pension Plan
• Bajaj Life Long Goal Pension Scheme
• Canara HSBC Invest 4G Whole Life
• Edelweiss Tokio Life- Wealth Ultima

Most of them at this stage get doubt whether they will get the same interest rate that they are assured of, by the above-mentioned plans. Here comes a major turning-point-Section 80ccc.

What is Section 80 CCC?

This section comes under the Income Tax Act of 1961. It provides exemptions of up to 1.5 lacs pa for the amount of contribution that an individual makes towards a particular pension plan. 

The Terms and conditions one must follow to avail of the benefit are:

• A bonus received is not eligible for exemption under Section 80CCC
• An amount parked before April 2016 is not eligible
• Monthly Pension one gets from the policy is to be taxed
• Any rebates on investment in plans before April 2006 are not allowed

Why is Financial planning important?

Financial Planning is one of the most important aspects in a person’s life to see only smiles around and wink at sorrows and grief on your way. Financial planning is a subject that has to be incorporated into school and university syllabi to bring awareness among the millennials and have a safe journey and make happy memories with their family.

Financial Planning is the most important step to ensure there is a healthy cash flow at home without unnecessary expenditures, better investment planning, continuous rate of interest from the investment portfolio, guarded against the shackles of running inflation, etc. 

Financial planning and financial literacy are like two edges of a sword. A sword would be of no use if one of the two is missing. Likewise, life will get useless and filled with tears and pain if the two are not done efficiently. When there’s only one life to live, why fret about learning this absolutely enjoyable art of financial planning? 

Also Read| Budget 2023: Expect standard deduction and 80C limit increases

FAQs

1. What is retirement planning?

Retirement planning is an important step in financial planning that helps one achieve long-term financial targets so as to lead a peaceful retirement life.

1. What are the different types of retirement plans available in India?

• Atal Pension Yojana
• National Pension System
• Pradhan Mantri Vaya Vandana Yojana
• Varishtha Pension Bheema Yojana
• Indira Gandhi National Old Age Pension Scheme

While the above are the government-offered retirement plans for senior citizens, 

• Max Life Guaranteed Lifetime Income Plan
• SBI Life Saral Retirement Saver Plan
• LIC New Jeevan Shanti Plan
• BajajAllianz Life LongLife Goal
• India FirstLife Guaranteed Annuity Plan
• ABSLI Empower Pension Plan 
• Kotak Premier Pension Plan
• Tata AIA Guaranteed Monthly Income Plan
• LIC Jeevan Akshay –VII Plan

These are the private Retirement plans available with private players in the market.

1. Why is financial planning important? 

Financial planning is an art everybody has to learn to ensure the adequacy of funds, healthy investment, to cover against uncertain events, and ensure financial growth in a family. 

The post Retirement Planning appeared first on Republic Aeon.

Governor Philip Lowe’s Statement Monetary Policy

Inflation is still very high on a global scale. Nonetheless, it is slowing down as a result of falling energy prices, the clearing of supply-chain issues, and the tightening of Monetary Policy. But before inflation returns to goal levels, there will be a delay. With predicted growth this year and next of less than average, the prognosis for the global economy remains gloomy.

Inflation in Australia’s CPI reached its highest level since 1990, 7.8%%, in the quarter ending in December of that year. Inflation was greater than projected at 6.9% in terms of the underlying price level. The majority of this high inflation may be attributed to global sources, but strong local demand is ratcheting up inflationary pressures across the economy in a number of different sectors.

Due to both global reasons and the slower expansion of domestic demand, inflation is anticipated to decrease this year. Inflation as measured by the CPI is expected to fall to 43.4 percent this year and to about 3 percent by mid-2025, according to the main prediction. It’s critical that this hold true because medium-term inflation expectations are still firmly anchored.

Over the course of 2022, the Australian economy increased rapidly. The primary prediction has not significantly changed from three months ago; over 2023 and 2024, GDP growth is anticipated to decrease to approximately 1 12%. Following the removal of COVID limits, expenditure on services recovered somewhat, but it has now mostly peaked, and the more difficult financial situation will limit spending more broadly.

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There is still a severe shortage of labour. In recent months, the unemployment rate has been stable at around 312%, the lowest level since 1974. Both the number of open positions and the number of job adverts are extremely high, however they have just started to fall. Although some companies claim that the labour shortage has recently eased, many businesses still have trouble hiring employees. Unemployment is predicted to rise as economic growth weakens. By the end of this year, the jobless rate is expected to rise to 334 percent, and by the middle of 2025, it will be 412 percent.

Because of the tight labour market and greater inflation, wages growth has been increasing from its low rates in recent years, and more increase is anticipated. The Board will continue to pay careful attention to the evolution of labour costs as well as the behaviour of enterprises in establishing prices in the period ahead given the significance of preventing a prices-wages spiral.

The Board is aware that there is a lag in the implementation of monetary policy and that mortgage payments have not yet fully benefited from the overall rise in interest rates. The timing and size of the anticipated decrease in household expenditure are also unknowns. However, due to higher interest rates and rising costs of living, some households are feeling a harsh squeeze on their budgets while others have sizable savings buffers. The drop in housing values also has an impact on household balance sheets. Another area of concern is how the global economy will react to the sharp and sudden rise in interest rates taking place everywhere. A number of possible outcomes for the Australian economy exist as a result of these uncertainty.

Regaining target inflation is the Board’s top objective. The economy’s ability to function is harmed by high inflation, which also makes life tough for people. It would also be incredibly expensive to lower inflation later if it were to get ingrained in people’s expectations. The Board’s goal is to keep the economy stable while bringing inflation back to a range of 2% to 3%, but there is still a long way to go before a soft landing can be achieved.

The Board anticipates that additional interest rate hikes will be required in the upcoming months to ensure that inflation returns to goal and that this high inflation rate is merely momentary. The Board will closely monitor changes in the global economy, patterns in household spending, and predictions for inflation and the labour market as these will all be taken into account when determining how much higher interest rates need to be. The Board will take whatever steps are required to bring inflation back to goal. This determination has not wavered.

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Axis Bank , a favourite of FPI and a consensus buy, posted a second consecutive quarter of strong core performance, prompting some upgrades to its target prices. The growth in pre-provision operating profit (PPoP) was the greatest in the sector, according to analysts, who also observed that Axis’ return on equity (RoE) and return on assets (RoA) were at multi-year highs. The management has repeated its prediction that loans will increase in FY24 by 6% to 8% more than the sector average. According to observers, the lender is concentrating on achieving capital self-sufficiency,axis bank Q3 result will impect on the share price.

According to Nuvama Institutional Equities, “We believe earnings volatility is a thing of the past with two good quarters of core performance and healthy RoA improvement.” This firm raised its price objective on the shares while stating that Citi’s portfolio is doing well.

Axis Bank Q3 result saw a 62% increase in net profit year over year (YoY) for the December quarter compared to the same quarter previous year, coming in at Rs 5,853 crore. According to a BSE statement by the bank, net interest income (NII) for the quarter increased 32% YoY to Rs 11,459 crore. The quarter’s net interest margin (NIM) was 4.26%, up 73 basis points (bps) year over year and 30 bps sequentially.

Shares of Axis Bank fell 2% after reporting strong profits in Q3. Should you buy. Q3 માં મજબૂત નફાની જાણ કર્યા પછી એક્સિસ બેંકના શેર 2% ઘટ્યા. શું તમારે ખરીદવું જોઈએ,#buletinindia #sharemarket #AxisBank #bussiness #Q3 #NewsUpdatehttps://t.co/bWGN5Nd5p3

— Buletin India (@buletin_india) January 24, 2023

In comparison to the average RoA of 1.3 percent over the previous eight quarters, ROE for the December quarter was 19.4% and RoA was 1.9%. According to Nuvama, the three years of fluctuating earnings have come to an end with the present high trajectory of profitability. Emkay Global raised its price estimate on the stock from Rs. 1,110 to Rs. 1,300.

Axis Bank Q3 result a 53% YoY increase in core profitability, which was aided by significant margin expansion and good core fees. This resulted in a 9% improvement in PAT together with the reversal of MTM losses (up 62 per cent YoY). Since the bank took careful provisions on a particular account that was displaying early symptoms of instability, the overall LLP was greater than anticipated “said Emkay.

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According to Motilal Oswal, Axis Bank produced a solid performance that was supported by increased margins, significant other income, and better cost metrics. It said that business growth was strong, with the corporate category driving it.

“Even though slippages somewhat increased, asset quality kept rising thanks to strong recoveries and upgrades. Further moderation was achieved by the reorganised book, and comfort was offered by a larger provisioning buffer. We revise our projections somewhat and anticipate Axis Bank Q3 result to produce RoA/RoE of 1.9%/17.3% in FY25 “It read. The stock’s target price according to this brokerage is Rs 1,130.

Asset quality for the bank is improving, according to Nirmal Bang Institutional Equities, but gross delinquencies and credit cost were affected by a non-recurring/one-time cautious item. The bank maintained cumulative provisions coverage at 13% despite all stress indicators showing a sequential improvement, it was reported.

“We have increased our profit projections and now anticipate that the bank will record RoA of 1.8% and ROE of 16.6% by FY25E. Value comfort supports our Buy recommendation for Bank. We continue to recommend BUY with a target price of Rs. 1,132 “It read.

According to Sharekhan, the bank’s asset quality is unaffected, at least in the short- to medium-term. According to the bank, it has additional contingency buffers of 150 bps of advances in addition to the PCR.

https://twitter.com/Mahaprasad711/status/1616760552734457856

“Regarding the sustainability of NIM, we think that both the asset and liability sides of the balance sheet are improving, which should somewhat offset the rise in the cost of funds. The most important monitorable indicator moving forward, nevertheless, is the increase in retail deposit mobilisation. In the medium term, we anticipate operating leverage to begin to take effect and support PPoP growth. The integration of Citi’s portfolio will be the immediate emphasis “It stated this while offering Rs 1,140 as an objective.
According to publicly accessible data from Trendlyne, the stock has 30 “strong buy” calls, four “buy” calls, two “hold” calls, and no “sell” recommendations. According to data, FPIs owned 46.71 percent of this bank as of December 31, 2022.

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Many banks have recently increased the interest rate (MCLR) on different types of loans. On Sunday, January 15, the public sector State Bank of India increased the lending rates (SBI MCLR hike) by 10 basis points. Today Kotak Mahindra Bank and Federal Bank have increased the interest rate (Federal Bank MCLR) by 10 to 30 basis points. Federal Bank has increased interest by a flat 20 basis points for all loan tenures, while Kotak Mahindra Bank has increased interest by 10-30 basis points for different tenure loans (Kotak Mahindra Bank MCLR). The new rate is applicable from today itself. Due to the increase in MCLR, interest on other types of loans including home loan, car loan will increase and the burden of EMI going every month will also increase.

Federal Bank MCLR

According to the information available on the bank’s website, Federal Bank has increased the overnight MCLR to 8.95 per cent. One month MCLR has now become 9 per cent, three months MCLR 9.05 per cent, six months MCLR 9.15 per cent and one year loan rate 9.20 per cent. The base rate is 9.63 per cent.

Kotak Mahindra Bank MCLR

According to information available on Kotak Mahindra Bank’s website, the overnight MCLR is now 8.15 per cent, one month MCLR 8.40 per cent, three months 8.55 per cent, six months 8.75 per cent, one year 8.95 per cent, two years 9 per cent and three years The MCLR has now increased to 9.15 per cent.

SBI Hiked MCLR

According to SBI’s website, the increase in MCLR has been done over a period of one year only. The 1-year MCLR has increased by 0.10% to 8.40. Overnight MCLR remains at 7.85%, 1 to 3 months MCLR 8%, 6 months MCLR 8.30%, 2 years MCLR 8.50% and 3 years MCLR 8.60%.

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Before the municipal elections in Uttar Pradesh (UP), the Goods and Services Tax (Goods and Services Tax) teams are raiding fiercely. Because of this, panic is being seen among the traders of the state. Traders have closed shops in many districts of the state. GST teams are going shop-by-shop to check the documents and take action if any discrepancy is found. Let us understand how much GST is applicable on the income of any businessman and who comes under its ambit.

GST was implemented by abolishing 17 taxes

GST was implemented on 1 July 2017. It removed many complexities of indirect tax, making it easier to do business. With this new system, 17 taxes like VAT, Excise Duty (on many things) and Service Tax were abolished. To promote small industries and businesses, the government had exempted businesses with an annual turnover of Rs 40 lakh from the purview of GST.

Apart from this, those businesses whose annual turnover was 1.5 crores were given exemption to deposit only 1% tax under the composition scheme. Service providers whose turnover was up to Rs 50 lakh were exempted from paying tax at the rate of only 6 per cent.

Traders allege

The shops which are not registered or fear of action are haunting them, they have closed their shops and are sitting at home. Traders say that shopkeepers who are not under the ambit of GST are also being harassed in the name of raids. It is alleged that some technical flaws are found in the investigation and then pressure is put for action. Establishments are threatened to be seized. Later penalty is deposited without tax assessment.

Who needs GST number?

When the turnover of a trader’s business exceeds Rs 40 lakh in a financial year, it becomes mandatory for him to get registered under GST. This limit has been kept at Rs 20 lakh for the service sector business. GST is applicable to all types of business.

At the same time, states like Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand, which have been placed in the special category, are required to obtain a GST number on their annual turnover of Rs 10 lakh. Small businesses, whose turnover is less than this. They are not required to register under GST. However, if they want, they can choose the option of registration.

GST slabs and rates

The GST Council sets the GST rate slabs. The GST Council reviews the slab rates for goods and services on a regular basis. GST rates for various goods and services in the country are divided into four slabs. 5% GST, 12% GST, 18% GST and 28% GST. Central GST (CGST), State GST (SGST) and Inter State GST (IGST) tax goods and services at different rates.

In the 47th meeting of the GST Council, all the products were included in the purview of GST. In this meeting, exemption from tax on some other products including pre-packaged, pre-labelled curd, lassi and butter milk was abolished.

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