project report on LIC

Why pension plans offer the best retirement solutions Mohan Shahs father Prakash retired last year from Central Bank of India.

During his 29 years of service, he failed to opt for any pension scheme. And being the sole earning member, Prakash retired with little savings. The little that was there in his bank account was used up last December to pay for his second daughter’s wedding.

Today, he and his wife live with Mohan and are forced to rely on their children for financial support. But for how long? Having turned 60 last month, and looking at the mortality tables, Mohan’s father has probably another 15 to 20 years left. Added to daily expenses, in January this year, Mohan’s mother was diagnosed with diabetes and has to take insulin regularly.

This means medical expenses for Mohan. Health and medical costs have increased manifold and will quadruple over the next 10 years. This is an additional expense for Mohan, as doctor’s visits become a regular feature as one ages. It’s not just medical costs alone. Even daily expenses like food, petrol and transportation end up costing more. A kilo of potatoes used to cost just Rs 1.50 some time back. Today, a kilo costs Rs 8, and if inflation rises at the annual rate of five to six per cent, 10 years from now potatoes