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 investment so that you can comfortably meet growing
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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:
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.
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.
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.
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
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.
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.
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