To ensure a comfortable retirement in India, you should
consider the following instruments:
*Bank FDs — long tenure.
*Monthly income plans such as those from UTI and the Post Office
*Life Insurance covers
*Company fixed deposits
*Dividend options of debt mutual funds
*Debentures/ bonds of firms and financial institutions
Post offices really cannot be considered a good place to keep
your money since the transaction process is extremely
complicated. The savings banks of the post offices are outdated.
Withdrawing money from a post office can take as long as 15
days.
While it is preferable to have a mixed portfolio, parameters
like convenience, efficiency, rate of return are variable. To
ensure a hassle-free retirement it would be best to go in for a
pension policy during the prime earning years.Don’t be
sceptical of policies from LIC and UTI. These are more than a
fallback of last resort — they are a good avenue for
investment especially for those who want to play it ultra-safe.
LIC policies come with the additional benefit that risk on the
life of the insured person is covered for the full sum. The
person gets his pension so long as he is alive. At his death,
the nominee gets the assured sum with the guaranteed additions.
These instruments from LIC and UTI have an additional advantage
in that they don’t require regular monitoring unlike other
instruments such as company fixed deposits, debentures and the
like.
Apart from the very obvious Public Provident Fund, other popular
schemes are LIC’s Jeevan Dhara, Jeevan Akshay and Jeevan
Suraksha, while UTI offers the Retirement Benefit Plan (RBP).
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