5 investment options to consider for leading a secured retired life

Fixed deposits are one of the best options for people looking for an assured income after retirement. These are offered by commercial banks, small finance banks as well as non-banking financial companies (NBFCs). On attaining the age of 60, lenders also offer a higher rate of interest on fixed deposits.

One can invest in SCSS after attaining the age of 60 years only. However, if an individual has opted for Voluntary Retirement Scheme (VRS), he/she is eligible to invest in the scheme from the age of 55 years. A retired personnel of Defence Services (excluding Civilian Defence employees) is also eligible to open an account under this scheme on attaining the age of 50 years, subject to fulfillment of other specified conditions.

Currently, investment in SCSS fetches 7.4 percent interest.

PPF, a retirement investment avenue, offers an EEE (Exempt-Exempt-Exempt) tax status and comes with a lock-in period of 15 years. The maturity amount and the overall interest earned during the period of investment are tax-free.

“Periodic investment in PPF for a long-term can do the trick with the power of compounding,” says Suren Kochhar, senior president, head of sales & marketing, YES Asset Management (India) Limited.

NPS, introduced by the government, allows individuals to contribute towards building a pension corpus throughout their working life. A subscriber can also continue to contribute to NPS account beyond retirement (up to 70 years). It allows one to develop a significant fund for the second innings of life, say experts.

Retirement funds, also known as pension funds, are investment options that allow an individual to save a certain portion of their income for their retirement. According to Groww, pension funds are invested on the investor’s behalf, and the income generated from that investment is contributed as the interest provided on the pool of funds. These offer a fixed benefit, as it does not depend on asset return and market fluctuations.