Retirement Plan – Is your future idea really STABLE?

Preparing your finances is not just wise but also essential!

For every individual, it is important to ensure the comfort and security of the future ahead of time.

But how can this be done?

Well the ideal formula to building a secure retirement plan is quite simple

Spend 50% on Necessities

Spend 30% on Luxuries

Save 20% for the Future

Sounds simple, doesn’t it?

The problem is, this is not how regular life works; approximately 70% of regular incomes (or even more) are just spent on necessities!

Unfortunately, for most senior citizens living in Pakistan, life is usually dominated by problems such as limited income or dependency on children. Therefore, usually, they cannot make a retirement plan and build future stability ahead of time.

RETIREMENT PLANS AND INVESTMENT OPPORTUNITIES IN PAKISTAN

Some people save smartly and work out various plans but even then, one problem or other occurs which directly impacts the stability and security of their savings. We studied what different retirement plans are being considered by those who are 50+ in age. Let’s talk about them.

Insurance Policies

One of the most popular options is the investment policies. Simply put, life insurance policy is a contract between an individual and an insurance company. The insurer pays premium amounts each year and the company provides lump sum payment to the beneficiaries of insured upon the insurer’s death. The life insurance policy is usually chosen according to the requirements of the owner. 

There are two main types of Life Insurance Policies – Term Insurance and Permanent Insurance. Term insurance pays only if death occurs during terms of policy which takes 1 – 30 years. Permanent Insurance or the Death Benefit pays upon the death of insurer even if they live a 100years! 

But this option is not only absurdly expensive but also requires you to go through a perplexing process. Therefore, it is not a convenient retirement plan 

We discussed about it in a previous blog as well. Check out: Life Insurance Investment in 2020 – Is it Worth the Hassle?

Prize Bonds

Another popular option – prize bonds! As a spare approach to procure some cash, a lot of individuals here invest in prize bonds in Pakistan. Biggest advantage? They are evergreen which means prize bonds are never wasted. They are a risk-free savings scheme which gives you a chance to win cash prizes – but with no profit.

But you see, that is the exact problem. Despite being a liquid asset – more like cash in hand – prize bonds aren’t a reliable form of investment. The reason is simply that your chance of winning the lottery is low (around 3.6%) PLUS you also face a loss of value for your original money. When investing your savings, the priority is to get the highest potential returns but here, prize bonds don’t offer any such advantage.

We discussed about prize bonds in a prior article as well. Want to learn about it? Check out: Prize Bonds in Pakistan – Safe Bet or Wastage of Time?

Real Estate

Generally considered as a great investment option, real estate lets you generate passive income. Not only does it protect you against inflation but also offers an active income stream. The only problem here is the ‘money’. You see, investing in real estate, requires you to pay a huge amount of upfront costs.

Just to get started, you are required to pay down payment and closing costs along with repairing the costs of your property. This can obviously be difficult for an average citizen….and therefore, despite real estate being the best investment option, not everyone can invest.

We talked about real estate investments earlier as well. Check out: Real Estate Investments in 2020: Why or Why Not

SO, WHAT IS THE ULTIMATE SOLUTION?

We understand how down payments in real estate become the hindrance keeping you from availing the best saving option available. So we, at QAYAD, have come up with an out-of-the-box solution that will allow average citizens to easily invest in real estate and gain lucrative profits without emptying their pockets.

The real estate industry of modern-day requires a new angle to it; a solution to bring ease of access for the clientele and affordability for all. QAYAD envisions to overcome these issues, combined with technological innovations and capabilities of the current day. With Qayad’s Real Estate Investment Project, you can invest in real estate project shares/units on a much smaller scale. Starting from 5 sq.ft. only!

With QAYAD, you can invest in real estate units for down payments as low as Rs. 20,000/- Only! Monthly installments are also as low as Rs. 1,700!

Want to learn more? Dial our UAN +923310222786 or visit https://www.qayad.com

About Sidrah Ramzan

I'm Sidrah Ramzan, a CS graduate and certified Content marketer interested in research and development in the field of real estate. With an experience of over 6 years, I am specialized in Evidence-based, insightful writing.

View all posts by Sidrah Ramzan →

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