There's a popular saying, "Retirement is when you stop living at work and start working at living." Retirement is fun only if you have money to enjoy it. Otherwise, it can be a nightmare. How will you spend days after days without income? It's difficult to get a job in old age and why would you want to put in hard work, after you are 60?
Actually, it's really simple. You have to invest money when you are working, to enjoy retirement. There are plenty of investments for retirement, but you have to choose the right investment. An investment which meets your retirement goals is the right investment.
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Financial Plans for Retirement Benefits
Why must you plan for retirement? It's simple. Inflation, the general rise in the prices of goods and services each year, eats up most of what you earn. If you are struggling to pay bills today, how will you survive retirement?
1. Invest in NPS for retirement
National Pension Scheme popularly called NPS encourages you to save and invest across your working life for retirement. Let's say you invest in NPS at the age of 30 and stay invested till 60. NPS allows you to invest up to 50% in equity, giving you an excellent chance to get sufficient money at retirement.
NPS is very good if you want to save for retirement, but are not comfortable making investment decisions.
NPS offers you 2 choices:
1. Active choice: You invest up to a maximum of 50% in equities and the rest in Corporate Bonds and Government Securities.
2. Auto choice: If you are not comfortable making investment decisions, pick the auto choice. Allocation is made on the basis of a predetermined formula depending on your age. Investment is in a mix of equities, Corporate Bonds and Government Securities.
Withdrawal: as per Indian Money Company you can withdraw 60% of the accumulated amount on retirement at the age of 60. The remaining 40% must be compulsorily invested in an annuity plan. The annuity plan gives you pension after retirement.
NPS encourages you to save for retirement and get a regular income after retirement.
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