5 best investment plans for your retirement

Every individual wants to live a comfortable and happy life even after their retirement. But living the same kind of life in your second innings is not easy, as you lose the source of your monthly earning. To enjoy the same kind of life that you lived before retirement, you can make investments. There are various investment options for retire person available in the market.

Planning for your retirement on time is very important, but it is not an easy task. Many things make it difficult such as the slow growth of the economy, inflation, and too many financial products in the market. Often, people get confused by the misleading advertisements of financial products by the banks and other financial institutions.

To find out the best investment option for a retired person, you should know the plans that can help to plan your retirement.

5 best investment plans for retirement

1. National Pension Scheme-A National Pension Scheme (NPS) is a government-sponsored scheme where an individual can regularly contribute throughout his/her working life. After retirement, they can withdraw partially or completely the invested amount to use and fulfill their needs. This scheme can be said as a perfect plan for the retirement because a person is free to invest in this scheme in small amounts earned during his/her employment. The Government of India has made this plan mandatory for the Government employees. A national pension scheme also provides you the tax benefit in the form of deduction under section 80C of Income Tax Act. Thus, any individual can opt for this scheme and enjoy the benefits after retirement.
2. Employee Provident Fund (EPF)-Employee provident fund is considered as one of the most popular investment plans in India. This plan helps a person to involuntarily save a part of his/her salary every month. Both, the employer and the employee equally contribute towards this plan and the amount invested can be used by the employee after their retirement. In case of any job change, it is important to get the EPF account transferred to continue contributing. The interest earned from the EPF is tax-free, and you can get a bigger sum at the time of maturity. You can also withdraw the money from this account in between to meet an urgent need.
3. Public Provident Fund (PPF)-Public provident funds are another great plan for investment. An individual can invest a part of his/ her earnings into a PPF account, to use the accumulated sum after his/her retirement. The investment can be made in any lump-sum amount anytime throughout the working life, and you can get the benefit after retirement. The interest earned from a PPF account is completely exempted from income tax as mentioned in Section 88 of Income Tax Act. The tax benefit makes this investment plan to be on the top list of the professionals.
4. Gold Exchange-Traded Funds-Investing in gold exchange-traded funds is another lucrative option to opt. By investing in gold, you can earn enough amount in return if used after retirement. Investing in such plans can fetch you greater returns as a continuous rise in the price of gold is seen from past few years. Investing in gold will be beneficial if you invest in it for long-term. You can purchase ETF by purchasing the units of gold every month. An ETF is same like a mutual fund that specially deals in gold.
5. Senior citizen FD-For planning your retirement, a senior citizen FD is one of the best investment plans. An individual can take this plan anytime in his professional life and can invest any amount of his/her savings. A senior citizen FD gives you the added benefit of choosing the tenor of FD as per your need. The interest rate of a senior citizen FD is also higher as compared to a normal FD. Thus, you can get better returns at the time of maturity. A longer tenor can fetch you a higher return on the amount invested in an FD.

The Bottom Line
Now, when you know about the various types of investment plans available in the market, you can easily choose any of it to plan your retirement. Generally, people prefer to invest in a fixed deposit plan as they can get assured and estimated returns on their investment. Also, investing in an FD is less troublesome as compared to all other investment plans.