What are the Top Retirement Investment Options for Salaried Individuals? - Farah Atelier

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Tuesday, January 8, 2019

What are the Top Retirement Investment Options for Salaried Individuals?

If you are a salaried person, you would know how difficult it is to manage your investments and expenditures within an assigned income. Due to this reason, you must consider your income, expected returns, time available, and the risks associated with the investment option before investing. Investments will help you in eliminating or at least reducing your liabilities.

As a salaried individual, you might look for an investment option that maintains liquidity and provides guaranteed returns. Investments that can provide high investment returns are majorly volatile in nature while investments that yield less comparatively promise guaranteed returns.
Volatile investing options for a salaried person includes mutual funds, bonds, etc. and non-volatile investment options for a salaried person include Fixed Deposit (FD), Public Provident Fund, etc.

What Investment Options Are Best for Salaried Persons After Retirement?

For salaried employees, it is critical to build a sizeable corpus for the retirement years. However, volatile investment options could be risky in the case. If you wish for assured returns from your investment, you can go for guaranteed investment options like EPF, PPF, and FD. Following are top investment options that are best for salaried individuals after retirement:

Senior Citizen Savings Scheme

This is a secure investment plan for the senior citizens of India. If you are an individual of 60 years or above, you can invest in the Senior Citizen Savings Scheme (SCSS). You can invest a maximum amount of 15 lakhs individually or jointly to open an SCSS account. However, the investment cannot exceed the limit of retirement money received. An 8.6% interest rate is applied to the investment and the average tenor of this investment instrument in 5 years. This tenor can be extended to 3 more years as per your convenience.

Public Provident Fund (PPF)

The Public Provident Fund (PPF) is a government initiative with the ministry of finance to draw funds from the public. In this type of investment, you need to invest money on a regular basis. The lock-in-period of a PPF account is 15 years, and the government of India decides the rate of interest. At present, the interest rate ranges from 8% to 9%. Also, this investment is not linked to market rate fluctuations due to which you get guaranteed returns with a fixed interest rate.

Fixed Deposit (FD)

Fixed Deposit (FD) is one of the leading investment options in India. This is due to the security and guaranteed returns. People who do not wish for volatile investments build their wealth through an FD. Prominent Non-Banking Financial Company (NBFC), Bajaj Finance, offers attractive interest rates on FDs with a flexible tenor and assured return.
Today, Bajaj Finance is the only financial institution that offers the highest FD interest rate that is 9.10%. Additionally, you can avail exciting benefits like choosing the frequency of interest payout, selecting the tenor from 12 months to 60 months, and calculating the maturity amount with the help of FD calculator.

What is the Best Choice?

As suggested by experts, investing in an FD would guarantee the returns of your investment. Dominant financial providers like Bajaj Finance offers FD with the highest interest rate in the market. With a minimum principal deposit of as low as Rs 25000, you can open an FD at any time from anywhere with a quick online application and minimal document submission.
Bajaj Finance is certified with CRISIL's FAAA and ICRA's MAAA stable rating which is the highest rating given to financial service providers. Some additional benefits include 0.35% increased FD interest rates for senior citizens and online accessibility to FD account for quick application and management process. You can also renew your FD through the online medium. With every FD renewal, the interest rates increase as the base amount increases.

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