What schemes should you invest in to plan your post-retirement life?
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What schemes should you invest in to plan your post-retirement life?

  • Highlights

  • FDs with Bajaj Finserv can fetch you up to 8.6% interest

  • SIP & RD allow you to save in a disciplined manner

  • SCSS offer tax benefits along with investment flexibility

  • Receive pension after 60 with Atal Pension Yojana

According to a survey conducted by the Ipsos MORI in 2015, 47% of India’s salaried population have either not saved for retirement or had stopped due to financial difficulties. This makes it more complicated to live a financially secure life after retirement. So, it is best for you to identify investments that are conducive to maintaining your lifestyle even after you retire and take a disciplined approach to saving.

Take a look at the investment options that you can consider to grow your funds for retirement.

Company FDs

Fixed deposits offered by companies assure a higher rate of interest on your savings. With reputed financial institutions such as Bajaj Finance offering versatile options, you can now park your investment in safety with Fixed Deposits and allow them to mature on a rate of interest of up to 8.6%. This is not only one of the highest interest offerings by any financial institution in India, but also offers safety with ICRA’s MAAA (Stable) Rating and CRISIL’s FAAA/Stable Rating, which adds an extra layer of security to your investment.

SIPs

SIPs or Systematic Investment Plans allow you to regularly plan and invest in market securities with the help of an expert mutual fund manager. You can choose a flexible recurring timeline to make contributions to an SIP based on your financial goals and income. You can choose from making monthly or quarterly investments and grow your earnings over time at a high interest rate. There are numerous types of SIPs to choose from, including those offered by Bajaj Finance that have low transaction costs. However, SIPs are linked to the market and do not offer guaranteed returns, so be careful to include your risk appetite when choosing an SIP.

Atal Pension Yojana

Brought in action by the Modi government, this pension scheme in India aims to offer recurring pension of an amount from Rs.1000 to Rs.5000 based on your contribution. You can start an APY account with a valid savings bank account and your Aadhaar details. Being in the age group of 18-40 years is a mandatory eligibility requirement set by the government in this regard, offering you pension from the age of 60. You can also nominate beneficiaries under this scheme, and apply from a bank or post office once you fulfil the other eligibility criteria.

Senior Citizen’s Savings Scheme

SCSS is one of the most trustworthy investment options for senior citizens. You can invest in this scheme via a local post office or a bank. You can invest up to Rs.15 lakh in one SCSS for a 5-year tenor, which you can extend to another 3 years on maturity. Once parked into safety, your invested sum is capable of earning 8.6% interest all through the tenor. Additionally, this investment allows you to claim deduction under Section 80C of the Income Tax Act. Just remember that you can start this investment only when you have retired and not before that.

5 Reasons why you should invest in SIPs

Recurring Deposits

In case you want to divide your yearly investment into regular monthly savings, you can find your answer in recurring deposits. These is a secured investment that allows you to set aside a fixed sum every month. Additionally, your investment earns 7-8% interest annually. Besides convenience, recurring deposits offer assured returns on maturity.

Investing in these simple instruments will help you build wealth over time and will allow you to create a strong investment portfolio that can be of use after retirement.

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