Your retirement is a stage where you would want to relax and not worry about anything much. Well, if that is your goal, then you must make sure that you start organizing your finances early in life. This way you can target a large retirement corpus as well as have options through which you can generate income even during retirement.
If you have enough savings by the time you retire, you will have multiple investment options to choose from for stable income during retirement. Investment options such as Senior Citizen FDs, Senior Citizen Saving Scheme (SCSS), and Provident Fund (PF) are some of the schemes that can help you with this.
Even though, there are several options for investments, you can benefit from strategizing sources of steady income while planning your finances. If you are approaching your retirement and have only just started planning your retirement income, do not worry as we have narrowed down a few useful strategies for you:
Consider the Externalities
When you are investing in schemes that would yield returns in the long-term, it is essential to consider the external factors as well. Your retirement plan could facilitate regular and guaranteed income during your retirement, which makes it crucial for you to gauge the external factors that would affect the investment returns and interest rates. These factors would include market volatility, inflation, as well as unforeseeable emergencies. Taking these externalities into consideration while creating the retirement income plan will make it more future-proof. It would also be important here to assess the growth potential of your investments and ensure that they outpace the impact of any of the externalities above.
Include Guaranteed Income Options
Along with finding options that may offer lucrative returns on your finances, it would be important to narrow down schemes that would ensure guaranteed income within fixed intervals. Fixed Deposits could be an excellent investment option for retirees to get regular returns without any risk. NBFCs like Bajaj Finance also provide several additional facilities like pre-approved offers on loans, online account management, and higher interest rates. Since the FD interest rate offered by Bajaj Finance is much higher than the banks, you can maximize your returns effectively. To make sure that you are able to make the most of your fixed deposits, make sure to use the FD calculator before you decide on the type of FD you want to choose.
Diversify Your Investments
Since you would be dependent on the returns on your investment for income during retirement, it would be important to not just rely on one particular option. You can diversify your investment portfolio by parking your money into several schemes such as mutual funds, fixed deposits for senior citizens, SCSS, PPF, and many more. This way you can ensure that you are not just dependent on one source of income during your retirement. Diversification of your investment portfolio could also lessen the risks, making it a perfect option for senior citizens post-retirement.
By planning your investments in advance and ensuring diligence in the schemes that you choose, you can ensure that you get maximized returns on your retirement corpus while defining fixed income flow during your retirement.