buy brand name Dilantin online If you’re not thinking about retirement and relying on your children to look after you in your old age, you’re among the 77% so do you have Retirement Plan?
If you’re not thinking about retirement and relying on your children to look after you in your old age, you’re among the 77% of the population who are yet to plan for retirement, as per Reserve Bank of India data. With cost of living getting expensive every year, relying on your children is risky! In the years to come, your children may find it very difficult to manage their own finances and pay your bills at the same time.
Also, retirement may be years away but have you thought about how you will survive your old age? You would need a fair amount of cash to lead a comfortable retirement life. You’ll have to keep aside some money for your medical expenses too. Therefore, it is best you start planning for your retirement when you are young. That is because it takes time to build a robust retirement corpus.
Now that you are aware of the importance of retirement planning, here are five investment options you can invest in, for a comfortable life post-retirement.
- here National Pension Scheme (NPS)
This scheme is operated by the Government of India. You are eligible to invest in this scheme if you are between 18 to 65 years of age. There are two types of accounts: Tier I and Tier II. In the former, there are some restrictions on withdrawal. You cannot take out more than 20% of the contribution if you are below 60. If however, you are above 60 years of age, you can withdraw roughly 60% of the contribution. The Tier II account, meanwhile, has no such restrictions.
If you opt for Tier I account, you need to contribute 10% of basic salary and dearness allowance. Your employer needs to make the same contribution as well. For Tier II account, the minimum contribution is Rs.250 every month. You also need to maintain a balance of Rs.2,000 at the end of each financial year. This scheme can help you save tax too. As much as 40% of the retirement corpus is not taxed at maturity.
- Employee’s Provident Fund (EPF)
This is a popular retirement-saving instrument. There are two key reasons for it: it helps your money grow and provides tax benefits. The money you receive once the scheme matures is tax-free. Be mindful of applying for an EPF transfer in case of a job change. If you forget to do so, you will miss out on the benefits of compounding.
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Equity-related instruments like stocks and mutual funds have the potential to fetch high returns. What’s more, they are tax-free after a year of investment. Ensure that you are investing for the long run. That’s because stocks are prone to high volatility in the short-term.
This is the reason why a lot of people stay away from financial markets. While they can offer you high returns, there is also a possibility of losing your investment. Hence, it is best that you do thorough research before investing in them.
Bonds are considered a safe investment. They are basically loans that you give to the Government or a company, who then pay you interest in return. They can offer high interest rates. You must, however, ensure the bond has good ratings before you decide to invest in them.
- Fixed deposits (FDs)
Why you should have Retirement Plan?
FDs are considered one of the safest options for retirement planning. Lenders offer FDs for a set tenure and fixed interest rates. However, the FD interest rates are competitive, and offer assured returns. Bajaj Finance offers one of the highest FD interest rates at 8.45%. Why you should have Retirement Plan? The interest rate goes up to 8.75% for senior citizens.
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This is how you should have Retirement Plan
You don’t need a high corpus to invest in FDs. Again, Bajaj Finance is one lender that allows you to invest in their FDs for as less as Rs.25,000. In addition, you can also take a loan against your fixed deposit. Some lenders, like Bajaj Finance, allow you to borrow 75% of the deposit amount.