Retirement marks the end of stable income for most individuals. However, if they have invested wisely before retirement, the same corpus can be utilized to generate wealth after retiring from the service. It is imperative to create an investment portfolio with both market-linked instruments and fixed income options before retirement. However, whether to invest in market-linked investments after retirement or not is completely your prerogative.
You should note that many investments prefer investing in government-linked instruments as they approach their retirement year. The investments like NPS, NSC, PPF, postal savings and FDs, etc. are among the popular choices. However, a fixed deposit is a better investment option that offers flexibility in terms of tenor choice and investment amount.
Here are a few ways that can assist you for retirement planning:
Deciding the Retirement Corpus
Many investors don’t know exactly how much they need to save before retirement. Preparing a proper roadmap for your golden years is a must for every investor. Consider the inflation rate while making a roadmap because you never know how expensive it would be to manage a household in the future.
You should also not burden yourself with too many loans and liabilities as you move forward in your career. The expenses like child’s marriage, higher education, etc. would also take away a sizable portion of your savings. However, as you clear debts and carry out these expenses, you will eventually be able to save enough money for retirement.
The National Pension System or NPS is an investment option that many people prefer these days. The higher return rate, regular monthly pension, and associated benefits make it one of the better investment alternatives for everyone. However, the kind of returns you would get depends on the performance of the instruments in which your funds will be invested. Also, if you need your corpus in the interim, the rigid withdrawal rules will prove to be a hindrance. The same thing can be said about EPF, PPF, and some other government-run schemes. To avoid this, you should invest some of your savings in a high-paying but more flexible investment option.
Investing for retirement through FDs
You might think of FDs as an investment option that can be preferred after retirement. If you choose the right FD plan and invest smartly, FDs will help you earn a high income even during your working days.
Bajaj Finance FD comes with an FD interest rate of 7.05%. Along with the relatively higher interest rate than bank and postal FDs, it also works as a stable platform for accentuating your savings. The high ratings on the stability which Bajaj Finance FD has received from ICRA and CRISIL ensure that your savings will remain protected in this FD scheme. Apart from these advantages, you also get these things when you invest in Bajaj Finance FD:
As compared to bank and postal FDs, your deposits in Bajaj Finance FD will earn a higher interest income. These earnings will reflect in your maturity amount and interest payouts.
For instance, you invest Rs. 15,00,000 in a bank or postal FD for 3 years. The below table shows their comparison with Bajaj Finance FD with respect to maturity amount and interest earnings:
|FD plan||Amount||Interest Rate||Tenor||Interest gains||Maturity Amount|
|Bank FD||Rs. 15,00,000||5.3%||3 years||Rs. 2,56,672||Rs. 17,56,672|
|Postal FD||Rs. 15,00,000||5.5%||3 years||Rs. 2,67,102||Rs. 17,67,102|
|Bajaj Finance FD||Rs. 15,00,000||7.05%||3 years||Rs. 3,24,714||Rs. 18,24,714|
Investing in Bajaj Finance FD is a wise decision because you can use it to plan investments as per your financial goals. The flexible tenor ranging from 12 to 60 months means that you can select a lock-in period as per your investment strategies. Also, the multi-deposit facility ensures that you ladder deposits safely by choosing varied investment tenors and FD types for each deposit.
Unlike NPS or PPF or other long-term investment options, you get higher liquidity with Bajaj Finance FD. It means that you can withdraw your deposits anytime once they complete the minimum period of 3 months. Moreover, the option of a collateral-free loan against FDs will enable you to march on your investment roadmap without any issues.
It is also a beneficial investment option after retirement as senior citizens get 0.25% higher FD rates than others. Investing via an online FD form will get you a 0.10% higher FD rate than others.