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Life can be challenging after the ’60s if you do not save enough until retirement. Ideally, you must look for an investment option that provides a regular income every month post-retirement. At the same time, it must help you to grow your investments so that you can comfortably meet the growing inflation rate.
The instrument should also offer enough liquidity so that you do not experience a shortage of funds during an emergency.
Let us look at the top 5 investment options that can meet your financial needs after retirement:
Annuity Plans
If you do not expect to get a regular monthly pension after retirement then you should start investing in annuity plans. You will have to make a monthly payment or a lump sum amount can be paid to an insurance company to receive a regular income after a certain period.
You will find several annuity schemes in the market. Therefore, you should choose a plan according to when and how much amount you expect to receive once you retire.
NPS
The National Pension Scheme allows you to deposit an amount in an account regularly during your working years. The corpus matures once you become 60 years old and you receive 60% of the accumulated amount at once.
The remaining 40% will be paid to you as a monthly pension as you will have to invest it in an annuity plan.
POMIS
Post Office Monthly Income Scheme is a deposit scheme offered by the Post Office of India. Under this scheme, you can invest Rs. 4.5 lakhs under a single account and up to Rs. 9 lakhs under a joint account.
Currently, the interest rate offered on this scheme is 6.6% but it does not provide you with any tax benefits.
Corporate FDs
Since the FD interest rate of bank FDs have gone down, corporate FDs can prove to be ideal for the growth of your investment both while working and after retirement.
Bajaj Finance FD is offering interest rates up to 6.85%, which is among the highest FD rates when it comes to fixed deposit plans in India. Not only that, you get the option of receiving a monthly interest payout by investing in a non-cumulative FD.
You can invest a part of your savings in a non-cumulative FD to receive a monthly income and the other half can be invested in a cumulative FD to benefit from the compounding of interest earnings.
Also, senior citizens get a 0.25% additional FD rate than regular citizens. An online procedure is provided to open a fixed deposit account and you will get a 0.10% for utilizing this option. For that, you will need to fill-up an online FD form and even the KYC can be verified online by using the cKYC procedure.
SDP
Senior citizens who get a monthly pension post retirement can invest a part of their income in a Systematic Deposit Plan. This deposit scheme offered by Bajaj Finance allows you to deposit Rs. 5000 or more every month for a period between 6 and 48 months.
You can either choose a tenor up to 60 months for each deposit or you can choose a single maturity date for all the deposits so that you will get a lump sum amount upon completion of the SDP tenor.
Your deposit will grow at an interest rate that prevails on the date of deposit and this scheme enables you to gain enough interest even by investing a relatively small amount every month.
To enjoy life after retirement, you should save enough money so that you can invest it and earn well from the interest that the corpus generates. Find an investment instrument that comes with easy withdrawal options and also allows you to multiply your savings. NPS, POMIS, and Annuity plans are some of the options that you can think of to fulfil your post-retirement needs. However, nothing can beat a fixed deposit as it offers more liquidity options, a flexible tenor, and an easy investment procedure.
A corporate FD like Bajaj Finance FD assures that your deposit grows at a high-interest rate. It is also a safe option as reputed credit rating organizations have given it high ratings for safety and stability. You can even invest in the Systematic Deposit Plan from Bajaj Finance which enables you to invest in an FD with small monthly deposits.
Author Bio:
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.
