CFP module three covers the knowledge of basic strategies towards achievement of objectives of a client of his/her post-retirement financial and other needs and ways to analytically build the required corpus. The information and skills of exploring and constructing various retirement solutions such as income flow from a purchased annuity and/or a fixed asset as well as of retirement products accessible or devised/modified would be tested. For clients who are employees of an organization – government quasi-government or private, the superannuation benefits eligible and their assimilation in retirement strategy would be required for a prospective CFP professional. The emphasis would also be on the process of wealth creation and its protection and liquidity aspects in the approaching years to retirement and in the post-retirement period.
- Understand the importance of retirement planning as a necessary objective in view of increasing longevity, inflation and changing social structure, governmental stance.
- Enable the client to appreciate retirement goal and demonstrate the ability to evaluate client’s financial
situation pre and post-retirement.
- Determine appropriate retirement strategy for the client, account for superannuation benefits and assets to be utilized for income post-retirement.
- Determine the tax implication of annuity or stream of income post-retirement and the legal structure for encashment or bequeathing of assets.
- Implement the retirement solution in consultation with the client to achieve the objective of post-retirement income stream, monitoring progress periodically.
Section I: Employee Benefits and Superannuation Benefits
- Employee Benefits
- Superannuation Benefits and Schemes
- Defined Benefit Plans and Limitation
- Defined Contribution Plans
Section II: Life Cycle Analysis, Retirement Needs and Factors in Planning
- Introduction to Retirement Planning
- Analysis of Client’s Life Cycle
- Factors Considered in Retirement Planning
- Analysis of Client’s Retirement Needs
- Wealth Creation- Factors and Principles
Section III: Creation and sustenance of retirement Fund- risk profiling, strategies adopted and modified through life stages
- Retirement Planning Process
- Pre-retirement Strategies
- Post-retirement Strategies
Section IV: Provident Fund and Pension Schemes
- Public provident fund
- New Pension System (NPS)
- Pension plans from mutual funds and insurance companies
- Reverse Mortgage to Supplement Post – retirement Expenses
Section v: Pension sector reforms and regulatory framework of retirement solutions
- Pension Sector Reforms
- Regulatory framework of retirement solutions