Your personal finances may not be a concern when you are earning a regular monthly income through a job. But, it becomes a matter of concern when this continuous cash flow stops after you retire.
Therefore, you need to do proper retirement planning so that you have enough money to meet your needs after retirement. There are several plans online that will help you find ways to generate adequate funds after you have demitted your office.
Here’re some retirement fund options that will help you earn a continuous monthly income after your retirement –
Unit linked Insurance Plan – This is a long-term investment option that helps you strengthen your retirement goals. ULIP or Unit Linked Insurance Plan gives you the dual benefits of insurance and investment. This means it not only offers protection but also offers guaranteed returns. Moreover, the average returns in ULIPs are considerably high as compared to other investment products such as pension plan, endowment plan, etc.
Pension plan – If you are looking for a retirement investment option, then pension plan is the ideal option for you. These plans are designed specially to make sure that you are able to enjoy the same lifestyle that you had before retirement. This is a type of investment plan that let you dedicate a part of your savings to build up over a period of time and provide you with steady income after retirement. This plan will not just ensure a regular flow of income after retirement, but will also help you deal with the uncertainties after retirement.
- National Pension Scheme – This pension-cum-investment scheme is an ideal option for those planning for retirement. This scheme will provide regular income after retirement along with market based returns. Once you are retired, you can withdraw some part of the money in lump sum and use the remaining amount of money as regular monthly income after retirement by purchasing life annuity. In addition to this, it also offers tax benefits as per Section 80C of the Income Tax Act.
- Public Provident Fund – There are several investment products available in the market as per your risk appetite and investment goals. One such financial product is PPF. Public Provident Fund, also known as PPF, is one of the most popular savings-cum-investment products that comes with competitive interest rates and offers returns that are exempt from tax. Moreover, this scheme is for 15 years. Also, it provides income tax deduction as per Section 80C of the Income Tax Act for the amount invested. Listed below are the benefits offered by public provident fund –
- Long-term maturity period
- Guaranteed returns
- Attractive Interest Rates
- Tax Benefits
- Low risk as compared to other investment options
- 3- Senior Citizen Savings Scheme – This is a government backed savings scheme that has been designed for senior citizens seeking income post retirement. Senior Citizen Savings Scheme will help you plan for your golden days of life. As per this scheme, any resident individual who is 60 years and above is eligible to take this scheme. It offers highest interest rate among all the other savings scheme in India. Here’s a list of benefits offered by Senior Citizen Savings Scheme –
- Tax benefits
- Great returns
- Flexibility to choose the amount you want to invest in
- Premature withdrawal option
- Easy availability.
Running out of cash is one of the major concerns of retirees. So, these are some of the important investment options that you must take note of as it will not only offer long-term stability, but will also provide great returns on investment. Besides, if you are planning to buy a pension scheme online, then Canara HSBC OBC life insurance is the perfect option for you.