Once you retire from your job, your earning period culminates unless you decide to work as a freelancer or as a part-timer for any firm. In todayâ€™s era, where there is an availability of multiple financial instruments, you need to keep in mind that your life will not come to a standstill once you stop earning your regular income.
You may be worried if you would have to depend on your children or relatives for money, once your savings slowly start to exhaust. However, the good news is that you can still be independent even after you retire! With a little bit of extensive financial planning, you can stand on your own feet and meet your various needs easily even after retirement.
The money that you have earned for so many years needs to be invested accurately in financial instruments that generate income. Whether you are about to retire in a few months or you have already retired, you need to plan your finances efficiently by taking a little bit of your time. This basic level of planning after retirement will help you and your spouse for years to come.
Whether you need money for your daily purchases, for medicines, for regular medical check-ups, for vacation plans, or for shopping, you can build wealth with the help of certain investment options. You can live your golden years in brilliant style with proper financial planning!
Awesome Financial Tips for Retired Individuals in India
Let us now take a look at some of the interesting financial guidelines that will enable you to save your money and also earn additional income:
1. Look for immediate annuity options: When you apply for a suitable life insurance policy that offers instant annuities, you can enjoy quick income for your various requirements. You will receive an annuity or pension of approximately 5 to 6% from such annuity plans. Whatâ€™s more, you can get tax deductions with the help of these annuity schemes as good tax provisions will be applied on them! You can choose your plan according to your preferences. One of the best options is a pension for whole life. Your finances will be sorted with such a plan. Under such a scheme, you will get pension for self, and after your death, it will go to your spouse. Once your spouse also dies, the corpus of the scheme will go to your heirs.
2. Check out Senior Citizensâ€™ Savings Schemes (SCSS): When there is an entire line of savings schemes exclusively designed for senior citizens, you should definitely check it out as a retired person. One should be 60 years old and above in order to apply for such a savings scheme. Your money will remain secure in these schemes and grow extensively. Your wealth will increase over many years when you invest in them for a long term. You can apply for one by visiting a bank branch or by going to any network post office. Once the scheme matures, you can choose to redeem the amount or extend it for some more years as per your preference.
3. Buy a health insurance plan: In case you have not taken a medical insurance plan till now, you should definitely get one. You may say you have retired already and that there is no point in taking a new one. Thatâ€™s a wrong way to think about it. Investing a part of your money in health insurance is a necessity and rewarding too! In the future, in case you or your spouse gets hospitalised due to old age or some severe health issue, your medical insurance plan will come in handy. It will cover your steep hospital bills and pharmaceutical expenses without you having to burn a hole in your pocket. If you already have one, you could alter your plan or get a top-up health insurance plan depending on your health conditions.
4. Take a small personal loan for assorted needs: If you are wondering how to sponsor your dream trip to Australia, you could apply for a small personal loan and repay it quickly through fixed monthly installments. Banks have several personal loan options for pensioners at low-interest rates. You may take such a loan even for organising your granddaughterâ€™s wedding or any other loved oneâ€™s wedding. No matter what the reason is, you can apply for any pensioner personal loan and celebrate to the fullest!
5. Invest in National Savings Certificate (NSC): This savings certificate is distributed by the Government of India. You can invest your funds in this savings bond to earn fixed interest, which will get compounded. Moreover, under Section 80C of the Income Tax Act, you can enjoy high tax deductions. Now, isnâ€™t that a great investment idea? Hurry up to get one soon.
You can pick any of the above-mentioned instruments with bankbazaar or distribute your money between all of them for fruitful financial results. Once you retire, you should let yourself go and unwind after working hard for so many decades.
This article has been produced by TNM Marquee in association with BankBazaar.