We all work hard throughout life but there comes a time when we have to retire because we simply become too old to work and our earnings stop but our expenses continue to grow. When that time comes, we not only lose a large part of our live style but we also lose our income and so, planning ahead is crucial to ensure that you remain financially stable right through to your later years.
So, a pension fund or a retirement plan is there for you to deposit regular sums of money into in order to create a pot of savings that becomes accessible to you once you retire. In Pakistan you can have retirement plans and pension funds through two different ways.
- Pension Funds and Retirement Plans provided by Employer
- Private Pension plans procured by Individuals
Commonly, your employer will deduct a certain percentage from your wage each week or month and that will be saved. Over time, the amount you have saved will grow which highlights the importance of starting a pension fund as soon as possible.
You can also buy a pension fund investment or retirement plan from a private company in Pakistan such as offered by UBL Fund Managers, Jubilee Life Insurance, EFU Life Insurance, and Al Meezan Investments. There are a number of Private Pension Providers in Pakistan that will be covered at a later stage. The pension fund should be seen as your future wage that you will be able to draw from once you reach retirement age.