For any retirement corpus, risks from volatile markets and fluctuating interest rates are two most important factors. And you must keep in mind during working life. This means retired person may outlive his investments and money saved may not be enough to sustain desired lifestyle after retirement. You can also check VRS schemes rules. Hence, see Benefits of retirement schemes.
Start investing from your first income for retirement
Financial planners advise on risky investments. If you are near to retirement to ensure against corpus. It is best to have balanced portfolio that provides regular income. You can replace your salary once it stops flowing into bank. It is essential to identify monthly cash flow. So retirement planning is on post retirement. And 7% of annual requirement keeps increase. Hence, it is important to invest in products that can adjust to inflation.
At same time, mixed asset classes will provide better portfolio level returns. Equity and fixed income include mixed asset classes. Therefore fixed income products like senior citizen savings scheme. In addition, like debt based mutual fund and fixed deposit. But it is not advisable to invest all retirement corpus in one basket. Find below list of following investment avenues that suit for retirement.
In addition, like Senior Citizens’ Saving Scheme (SCSS) and Post Office Monthly Income Scheme (POMIS) Account. Bank fixed deposits (FDs), Mutual funds, Immediate annuities.
Hence, view what is Mutual Fund SWP?
As above you can choose SCSS and POMIS for regular return. Because, to maintain expenses of household where they get fixed rate of return. You can invest in well perform balance fund and MIP of mutual fund. However, it will not be more than 25% of portfolio. Hence, check Insurance sector will see growth of 18 to 20% with equity markets in FY18
Pradhan Mantri Vaya Vandana Yojana (PMVVY) has just launch. PMVVY also gives you guarantee fix return but it has own limitations. Like taxation, liquidity and maximum limit. It is suitable for below poverty people. In current scenario house hold expenses of Rs 5000 is not sufficient amount.
Happiness Factory founder & Chief Happiness Amar Pandit is also feels PMVVP is suitable for below tax limit. And your income post-retirement is low. If you want to invest only in FD can consider. Since scheme is similar to 10 Years FD.
For those who are looking for higher returns on their investments. You can invest in arbitrage funds for regular income flow and liquid funds to maintain liquidity. To reduce tax you must invest portion in debt mutual funds. Further, for higher returns retiree has to allocate portion in equity funds or balanced funds.
Finally, see top 5 pension plan in India. And you can also see best pension plans in India. For better understand see government pension plan. Therefore check best pension plan in LIC. Probably, check best retirement plan. In addition, check best pension plans with singly premium. Hence, check best pension plan in SBI