How to avoid outliving savings?

• Life expectancy is expected to reach 85 by the end of this century, raising concerns about the value of money.

• Inflation and healthcare costs are eroding the value of money, with nearly 4 out of 10 working Indians fearing they might outlive their savings.

• Long retirement years can last 25-30 years, making it crucial to have a retirement corpus that can keep up with rising costs.

• Unit-Linked Pension Plans (ULIPs) are designed to help build a retirement corpus, generating guaranteed income after retirement.

• ULIPs have two phases: accumulation phase and payout phase, with the latter allowing for tax-free withdrawals and regular guaranteed income.

• Health insurance policies with lifetime renewability can help prevent medical emergencies.

• Longevity risk can be mitigated by Pension ULIPs, providing guaranteed regular income on maturity.

• Withdrawals can be managed by ensuring at least 40% of corpus is set aside for guaranteed returns for life.

• National Pension Scheme (NPS) allows up to 75% of contributions to be invested in market-linked instruments with balance in safer debt options.

• A checklist can help determine the monthly income needed to live a comfortable life post-retirement, using the 4% rule.

• Consistent investing in unit linked pension plans ensures higher earnings when markets fall and lower earnings when markets rise, promoting growth.