When nearing the retirement age, you would probably determine the savings you built all your life. In the case when your corpus is not sufficient for your retirement years, you can restructure your investments by choosing to invest in plans like FD for senior citizen, Senior Citizen Savings Scheme, etc. Investment plans for senior citizens offer higher returns in a hassle-free manner.
You can apply for investment plans for senior citizens online as well as offline from the websites of the chosen financial provider. Both, banks and Non-Banking Financial Companies (NBFCs) allow you to invest and restructure your finances for retirement. You need to choose the plan as well as the financial provider based on your requirements as well as the benefits offered with the plan.
What is the Way to Restructure Retirement Investments?
1. Consider Diversifying Your Investments
You need to diversify your investments among short-term investments and long-term investments. You can also consider investing in flexible investment options with high liquidity as well as long-term investment options. You can diversify your investments among market-linked volatile investments and secure investment options. Volatile investments give high returns, but the returns are not guaranteed.
In secure investment options, you receive high investment returns than a traditional savings account but low returns as compared to volatile investments. However, the investment returns from secure investment options are guaranteed, unlike the volatile investment returns.
By diversifying investments, you will not lose your entire corpus in market-linked investments and maintain liquidity from your investments with short-term investments. Also, you will have a financial backup with your long-term investment options. However, you will need to choose your investments wisely based on your risk appetite and your financial health.
2. Determine Your Assets and Your Expenses
Since no income will be received after retirement, you need to determine your assets as well as your expenses that may occur post-retirement. You will be able to analyze the approximate returns you would require from your investment and choose the plan as well as the financial provider accordingly.
3. Know the Tax Payment Schedules
Even after you retire, you may still be liable to pay the taxes as per the Income Tax Act of India. However, you can claim for tax deductions or tax exemptions as per your eligibility under the Income Tax Act. You need to manage your income as well as the investment portfolio in order to manage tax payment from your investment returns.
How to Choose the Right Financial Provider?
Earlier it was believed that banks are the only reliable financial providers. But now, with credit rating companies like CRISIL and ICRA, you can determine the credibility of Non-Banking Financial Companies (NBFCs). Bajaj Finance is one of the dominant NBFCs that is accredited with FAAA from CRISIL and MAAA from ICRA. If you invest in secure investments like Fixed Deposits (FDs) with Bajaj Finance, you can enjoy the benefits like high interest rates (from 8.75% to 9.10%), flexible tenor, and much more. Following are some of the benefits of staying invested in FD with Bajaj Finance:
- High and assured investment returns without market rate influence.
- Flexible tenor varying from 12 months to 60 months.
- A choice between Cumulative and Non-Cumulative FD.
- Option to take a loan against FD with the permission to use 90% of the funds.
- Facility to make partial withdrawals with a nominal penalty charge.
- 35% increased FD interest rates for senior citizens.
- Availability of online FD calculator to calculate the maturity returns and the FD interest rates.
- Special tenor for a period of 15 months which offers 0.25% more interest than 12 month tenor under this scheme.
- This scheme supports 200 branches across 200 cities in India.
- The scheme provides online account management to its customers to track their investments.
- This scheme supports payment by electronic (Real Time Gross Settlement [RTGS]) and physical (payment by cheque) methods.
- Renewals under Bajaj Finance Fixed Deposit provide a 0.25% more interest rate as compared to the previous scheme opted by the account holder.
- Open your Fixed Deposit account under Bajaj Finance with a minimum initial deposit of Rs 25,000/- .