Retirement Investment Options That can Help You Make an Informed Choice
Money is never an issue when you are employed as there’s a regular salary. But when you retire and the constant cashflow stops, life can get quite difficult.
If your retirement funds are going to be your only source of income in future you need to make sure that your financial planning includes a plan for regular fixed income. You will also have to keep in mind that inflation is increasing every year and if not planned properly your expenses will go up while your income remains static.
Today, many senior citizens are able to enjoy the same lifestyle what they did before retirement. They are financially independent as they have done proper planning for their golden years. But it may be difficult for some retired senior citizens to live the same lifestyle they had before they retired, mainly due to poor retirement planning.
They may not be aware of the different investment options available that they can benefit them. For proper retirement planning you will need to invest in different products that offer long-term stability and high returns on investment.
Given below are some retirement investment options that can help you make an informed choice:
National Pension System (NPS): The NPSwas initially launched exclusively for government employees and then opened to all Indian citizens. This is a government regulated and extremely low-cost pension scheme. This is the only scheme which provides unique tax benefits over and above Rs. 1.5 lakhs. The subscriber can have the option to design own portfolio or choose a fund manager. On retirement, you can withdraw a partial amount and use the remaining amount for a regular income on retirement by buying an annuity.
Atal Pension Yojana (APY): The Atal Pension Yojana was launched by the Government under the Social Security Schemes in May'15. It can be availed by all citizens between 18 to 40 years of age. The scheme provides a minimum guaranteed pension in the range of Rs. 1000 to Rs. 5000 from age 60 onwards and for which the contribution amount is very reasonable. The scheme also offers the unique triple benefit of pension for the spouse after the subscriber and corpus for nominee after both subscriber and spouse.
Pradhan Mantri Vaya Vandana Yojana (PMVVY): Launched by the Modi government in 2017, it safeguards senior citizens against falling fixed deposit interest rates. With a guaranteed interest of 8% for 10 years, you can invest up to Rs 7.5 lakh in the scheme.
Public Provident Fund (PPF): The PPF interest rate is announced by the government on a quarterly basis and interest rate for the current quarter is 7.6%. The maturity period of the fund is 15 years, and it can be continued for a period of five years postmaturity. To open a PPF account, you will need to deposit Rs 500 as an initial investment. Minimum of Rs 500 and maximum of Rs 1,50,000 can be deposited in a Financial year.
HDFC Bank offers a range of investment products keeping in mind your risk appetite and investment goals. With a state-of-the-art investment platform, you get expert investment recommendations based on your retirement objectives.
You can now plan for your retirement with HDFC Bank by investing in products such as National Pension System, Atal Pension Yojana, and Public Provident Fund. Other products you can look at include Mutual Funds, Equities and Derivatives, Savings Bonds, Capital Gains Bonds, Inflation Indexed National Savings Securities, and others.
So build the right foundation for your future with HDFC Bank investment products and live a happy retired life!