Benefits of Periodic Payments Post Retirement
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Benefits of Periodic Payments Post Retirement

  • Highlights

  • You will have a regular income

  • Retirement plans come with lifetime guarantee

  • Enabling systematic investments with retirement plans

As you reach the end of your working years and are about to retire, your retirement plan may be offering you a choice. You can get the benefits of your investments as a lump sum or as a periodic (often monthly) payout.
Fixed deposits by Bajaj Finance help you get periodic payouts, so that you can cater to your regular expenses. It is particularly helpful, for managing your post-retirement finances.

While receiving the lump sum does have its own advantages and would certainly give you more control over the money, receiving periodic payments (or life annuity) also has its advantages. Here are a few of these benefits:

Regular Income

Periodic payments when received monthly, replace a salary in your life. Therefore, you have a steady and regular source of income, even after retirement. This allows you to budget easily for each month, and meet all of your day-to-day requirements.

Ensure Security for your loved ones

The steady income from retirement/ pension plans will usually continue even after your demise. This means that the plan will continue to provide for your spouse or any other dependent you may have, even in your absence. Thus, they will continue to receive money, allowing them to maintain the lifestyle they’re accustomed to.

Lifetime Guarantee

The periodic payments from retirement plans are called ‘life annuity’ for a reason. It’s because most retirement plans offer a lifetime payment, or at least for 30 years post retirement. That means that you can enjoy your golden years stress free, knowing that your plan will cover you for the rest of your life.

Enables Systematic Investment

When you receive your retirement plan investment returns periodically, you can spend with greater restraint. It stops you from investing too much and using all of your corpus too fast. Thus, with periodic payments you can invest in a much more careful and systematic manner.

How to Invest in Bajaj Finance Fixed Deposit ?

Enables Regular Debt Repayment

Since you receive the money monthly with a periodic payment scheme, you have a regular income that you can be used to meet all your requirements. That includes paying off any debt you may have. Thus, receiving a periodic payment allows you to pay off your EMIs regularly, until you finish repaying the loan.
There are several investment options for monthly payouts, but you must choose the best option, based on your risk profile, investment amount and amount you need to handle your expenses.


 

Therefore, collecting periodic payments post retirement comes with a host of benefits. However, if you are a smart investor and know to manage your money well, a lump sum could be an equally good choice. This is because you will be able to grow your corpus with good investments, and will have an option to leave a certain amount to your heirs.

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