Chapter 13: Retirement and Estate Planning

Good retirement planning is both tax efficient and investment effective. It’s never too early to start
planning for retirement. It is important to ensure your retirement income is structured to suit your
needs and objectives.

Estate planning aims to preserve your family’s wealth by distributing it to nominated beneficiaries in
the most effective way. It requires a consideration of each beneficiary’s personal and financial
circumstances to determine the best means of providing an inheritance without unfairly affecting the
beneficiary’s existing situation.

Retirement Plan

Retirement planning is the process of determining retirement income goals, and the actions and
decisions necessary to achieve those goals.

 Retirement planning refers to financial strategies of the saving, the investment, and ultimately
the distribution of money meant to sustain oneself during retirement.
 Many popular investment vehicles, such as individual retirement accounts (IRAs) and 401(k)s,
allow retirement savers to grow their money with certain tax advantages.
 Retirement planning takes into account not only assets and income but also future expenses,
liabilities, and life expectancy.
 It is never too early—or too late (although earlier is better)—to start retirement planning.

Retirement Benefit

Retirement and pension benefits are given to a retired employees to make sure that they have a
constant income and a secured life.

 The pension provisions are in place to ensure that the retired employees / officials are well off
and can be financially independent and can lead their retired lives with no financial
challenges.

Estate Planning

Estate planning is the preparation of tasks that serve to manage an individual's asset base in the event
of their incapacitation or death.

 The planning includes the bequest of assets to heirs and the settlement of estate taxes.
 Most estate plans are set up with the help of an attorney experienced in estate law.
 Estate planning involves determining how an individual’s assets will be preserved, managed,
and distributed after death or in the event they become incapacitated.
 Planning tasks include making a will, setting up trusts and/or making charitable donations to
limit estate taxes, naming an executor and beneficiaries, and setting up funeral arrangements.
 A will is a legal document that provides instructions on how an individual’s property and
custody of minor children, if any, should be handled after death.
 Various strategies can be used to limit taxes on an estate, from creating trusts to making
charitable donations.
Sources/References:

https://www.morgans.com.au/

https://cleartax.in/

https://www.investopedia.com/

Prepared by:

Lesley Allen D. Kabigting, MBA

College of Business Administration
Guagua National Colleges