- Date : 21/11/2018
- Read: 3 mins
We have charted out eight retirement investment options for women to ensure a happy retired life.
As women, it is very important for us to be financially independent. Equally critical is to plan for a stress-free future so we can live our golden years queen-size.
So how can we ensure that we invest wisely for a better tomorrow?
Listen up ladies; we have charted out eight retirement investment options for you. Read through and see which ones make a good fit.
1. National Pension Scheme
This government facilitated scheme aims at providing subscribers with a pension income after the age of 60. It offers two investment options – auto and active. Under the auto mode, the pension fund authority manages and allocates your corpus based on your investing age. With the active mode you can choose from three options, ranging from low to medium risk.
Related: What is National Pension Scheme and how it works
2. Public Provident Fund (PPF)
This time-tested retirement product offers the benefit of tax-free income. Over a 15-year lock-in period, the power of compounding allows you to generate a considerable corpus during the investing phase.
Related: Comparison of PPF and life insurance: Which comes first?
3. Atal Pension Yojana (APY)
APY is a deferred pension plan that offers a monthly pension ranging from Rs 1000 to Rs 5000. The premium is calculated based on the pension you are looking at. The plan guarantees a fixed rate for investments greater than 20 years.
4. Mutual funds
Most fund houses offer retirement-focused mutual funds, which have a mix of debt and equity. Those of you who are open to equity exposure and looking to make inflation-adjusted returns can consider such a fund. The plan has a three-year lock-in period and post the age of 58 you can create a systematic withdrawal plan to receive income from the fund.
5. Unit-linked pension plan
Unit-linked pension plans offer a triple benefit – insurance along with equity exposure and moderate to high returns on your investment. Though the insurance and fund management costs eat into your corpus, the fund usually offers an ‘assured benefit’. During the investing phase you can make partial withdrawals, while the rest goes into an annuity plan.
Related: Everything you need to know about ULIPs
6. Senior Citizens Savings Scheme (SCSS)
Available only for retirees (up to a maximum of Rs 15 lakh), SCSS can be availed of through any post office or bank. The interest is paid out every quarter and is a good option for women looking to invest their retirement corpus.
Related: Senior Citizen Savings Scheme: Why it makes good addition to retirement planning
7. Tax-free bonds
Government-backed institutions such as National Highway Authority of India, Power Finance Corporation, etc. offer AAA-rated long-term bonds (10 to 20 years), and these offer a much higher tax-free yield than traditional deposits.
Related: What are tax-free bonds and how they work
8. Post Office Monthly Income Scheme (POMIS)
This five-year investment scheme offers a monthly income that can be directly credited to your account or mandated into another recurring deposit account if you so wish. The maximum investment limit on the scheme is Rs 4.5 lakh for individuals. It does not offer any tax benefits.
Related: Why should you invest in Post Office Monthly Scheme
The list of options mentioned here is not exhaustive and there’s no single investment that may serve your needs adequately. It is essential to structure your retirement funds based on your risk profile, investment horizon, and tenure of savings, in addition to efficiently planning for tax benefits and inflow of funds as required.
As women, it is very important for us to be financially independent. Equally critical is to plan for a stress-free future so we can live our golden years queen-size.
So how can we ensure that we invest wisely for a better tomorrow?
Listen up ladies; we have charted out eight retirement investment options for you. Read through and see which ones make a good fit.
1. National Pension Scheme
This government facilitated scheme aims at providing subscribers with a pension income after the age of 60. It offers two investment options – auto and active. Under the auto mode, the pension fund authority manages and allocates your corpus based on your investing age. With the active mode you can choose from three options, ranging from low to medium risk.
Related: What is National Pension Scheme and how it works
2. Public Provident Fund (PPF)
This time-tested retirement product offers the benefit of tax-free income. Over a 15-year lock-in period, the power of compounding allows you to generate a considerable corpus during the investing phase.
Related: Comparison of PPF and life insurance: Which comes first?
3. Atal Pension Yojana (APY)
APY is a deferred pension plan that offers a monthly pension ranging from Rs 1000 to Rs 5000. The premium is calculated based on the pension you are looking at. The plan guarantees a fixed rate for investments greater than 20 years.
4. Mutual funds
Most fund houses offer retirement-focused mutual funds, which have a mix of debt and equity. Those of you who are open to equity exposure and looking to make inflation-adjusted returns can consider such a fund. The plan has a three-year lock-in period and post the age of 58 you can create a systematic withdrawal plan to receive income from the fund.
5. Unit-linked pension plan
Unit-linked pension plans offer a triple benefit – insurance along with equity exposure and moderate to high returns on your investment. Though the insurance and fund management costs eat into your corpus, the fund usually offers an ‘assured benefit’. During the investing phase you can make partial withdrawals, while the rest goes into an annuity plan.
Related: Everything you need to know about ULIPs
6. Senior Citizens Savings Scheme (SCSS)
Available only for retirees (up to a maximum of Rs 15 lakh), SCSS can be availed of through any post office or bank. The interest is paid out every quarter and is a good option for women looking to invest their retirement corpus.
Related: Senior Citizen Savings Scheme: Why it makes good addition to retirement planning
7. Tax-free bonds
Government-backed institutions such as National Highway Authority of India, Power Finance Corporation, etc. offer AAA-rated long-term bonds (10 to 20 years), and these offer a much higher tax-free yield than traditional deposits.
Related: What are tax-free bonds and how they work
8. Post Office Monthly Income Scheme (POMIS)
This five-year investment scheme offers a monthly income that can be directly credited to your account or mandated into another recurring deposit account if you so wish. The maximum investment limit on the scheme is Rs 4.5 lakh for individuals. It does not offer any tax benefits.
Related: Why should you invest in Post Office Monthly Scheme
The list of options mentioned here is not exhaustive and there’s no single investment that may serve your needs adequately. It is essential to structure your retirement funds based on your risk profile, investment horizon, and tenure of savings, in addition to efficiently planning for tax benefits and inflow of funds as required.
