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Retirement Planning – Best Retirement Investment Plans in India 2021

Best Retirement Investment Options

Financial security is one of the primary concerns for most people post-retirement. Investing in a sound financial tool which provides stable and assured returns is one of the most effective ways of growing your retirement corpus. Retirement planning is the process of aligning your investments with your retirement income goals and taking the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, sizing up expenses, implementing a savings program, and managing assets and risk.

While there are several investment options available to aid you with retirement planning, it is important to choose a balance of high safety and attractive returns. This way, you get to create a corpus to fund your post-retirement goals easily. With a retirement corpus in place you can also fund financial emergencies without having to compromise on ytour goals and comfortable lifestyle.

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Top 5 Retirement Investment Plans in India

Here are few investment options to consider while planning your retirement corpus. The returns earned from these can help fund monthly expenses post retirement.

  1. Stocks
  2. Fixed Deposit
  3. Mutual Funds
  4. Senior Citizen Savings Scheme:
  5. Public Provident Fund
  • Stocks: As equity investments that represent a share of ownership in a company or entity, stocks are one of the best investment avenues for long-term investors. These can be traded in a marketplace called the ‘Stock Market’, where all trades are done electronically.
  • Fixed Deposit: Fixed Deposit (or FD) is one of the best investment avenues. By investing in a Fixed Deposit, you can get assured returns at fixed intervals of time. This investment avenue is one of the most preferred options in India, due to the convenience and flexibility it offers. Even investors with high risk appetite choose to invest in FD to diversify their investments and stabilize their portfolio.

    Features and Benefits of Bajaj Finance Fixed Deposit
    Interest Rate Up to 7.05%
    Minimum Tenor 1 Year
    Maximum Tenor 5 Years
    Deposit Amount Minimum deposit of Rs. 25,000
    Application Process Easy online paperless process
    Online Payment Options Netbanking and UPI
  • Mutual Funds: These are collective investment vehicles managed by a fund manager which pools people’s money and invests in stocks and bonds of various companies and creates a return. With the convenience of low initial investments, mutual funds are volatile investment avenues that are best suited for medium-risk investors.
  • Senior Citizen Savings Scheme: As a government-sponsored scheme for individuals above 60 years of age, Senior Citizens Savings Scheme (SCSS) is primarily for the senior citizens of India. The scheme offers a regular stream of income with the highest safety and tax saving benefits.
  • Public Provident Fund: Public provident fund is a popular investment scheme among investors courtesy its multiple investor-friendly features and associated benefits. It is a long-term investment scheme popular among individuals who want to earn high but stable returns. It pays interest rate annually and requires a minimum investment amount of Rs 500 per annum. It has a life of 15 years with partial withdrawals allowed of the corpus at various points. This option also pays a high and steady rate of interest as prescribed by the government from time to time.

Why Do You Need to Invest in Retirement Plans

Individuals must have a contingency plan in place and prepare for financial security early on in life, as sources of regular income are curtailed post-retirement.

What is the process of retirement planning?

When starting with retirement planning, it is important to analyse your financial health, future goals and risk appetite.
Here are the steps involved in retirement planning:

  • Jot down your financial and retirement goals
  • Evaluate your existing financial situation
  • Measure your risk appetite
  • Plan an investment strategy
  • Monitor your investments periodically

Based on the above steps, it is important to make a smart choice regarding your preferred investment avenues.

Where to invest for the highest growth of retirement savings?

Presently, there are several investment avenues available in the market, which have their own advantages. However, if you’re looking to set aside a steady sum of savings, it is best to invest in a Fixed Deposit that offers assured returns and safety of your principal amount.

When choosing from different options, consider investing in a Bajaj Finance Fixed Deposit that offers attractive interest rates up to 7.05% and the convenience of investing from home.

Frequently Asked Questions

 

How can I plan my retirement, if I start late?

While planning investments earlier can help you gain higher returns, it’s never too late to start investing. For those starting late, it is important to choose fixed-income instruments offering guaranteed returns. You can always consider cutting down on expenses, looking for additional income options and get started with investing immediately.

What are the best investment options for retirement?

The best investment options for retirement are usually fixed-income products, which include Public Provident Fund, Fixed Deposit, National Savings Certificate, or Government Bonds.

What is the safest investment plan for retirees?

For individuals who have retired and have a low-risk appetite, Fixed Deposit can be a smart investment option. It is, however, recommended to invest in a safe option, like Bajaj Finance FD, with accreditation of highest safety ratings by CRISIL and ICRA.

When should you start retirement planning?

It is always recommended to start saving and investing for your retirement corpus earlier in life, as you can benefit from the power of compounding and grow substantial wealth from by investing in various financial instruments.

Why is Bajaj Finance Fixed deposit the best retirement plan?

Bajaj Finance Fixed Deposit is one of the best investment plans for retirement as the investor gets the benefit of higher interest rates up to 7.05% with flexible tenors. With safety ratings of FAAA by CRISIL and MAAA by ICRA, Bajaj Finance is one of the safest investment options too. Thus, with a balance of high safety ratings and attractive FD rates, Bajaj Finance can be a great way to grow savings easily.

 

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