Essential Investment Options for a Comfortable Life After Retirement

May 29, 2022

Essential Investment Options for a Comfortable Life After Retirement

In a comfortable post-retirement life, you can truly be yourself without any financial worries. To enjoy such a life, you need to start planning early and invest in lucrative financial instruments. In this article, we will help you to understand essential investment options so you can invest correctly and build considerable wealth.

Every individual has different financial goals in life. When you are in the working phase, you may dream of buying a home or a car or saving for marriage or any other long-term goal. Among all of this, one may forget about retirement planning which should be a top priority for most of us. Saving for retirement is crucial in order to fulfil your dreams and aspirations, post the age of 60. When you are no longer working, the accumulated corpus will serve as your income and hence, investment is the key. Passive savings won't help; you need to invest efficiently to create a sizeable corpus that lasts your entire lifetime. Here are a few investment options for retirement that you can consider for a comfortable life after retirement.

  • Fixed Deposits: When planning for retirement, opting for a safe investment option like a FD Account is one of the best things you can do. FDs are a secured investment option that give you assured returns at attractive interest rates. Invest in the Golden Years Fixed Deposit with ICICI Bank to avail various benefits and get an exclusive additional interest rate of 0.20% p.a. over and above the fixed rate of 5.45% p.a.

  • National Pension Scheme: This is a Government-sponsored pension plan for senior citizens offered by ICICI Bank. It provides an income security post-retirement. Unlike other pension plans, National Pension Scheme subscribers enjoy seamless portability, in case they change their job or relocate to a new city. The NPS interest rate varies from 9% to 12% p.a. A subscriber must choose between active choice and auto-choice to distribute their NPS contribution. If you select the active choice, you must indicate the percentage distribution between gilt, corporate and equity. The equity exposure is capped at 75%.

  • Employee Provident Fund (EPF): The EPF scheme is brought into force by the Government for a better future of employed individuals. It is a statutory benefit that is available to employees post their retirement or when they stop working. In case of an unfortunate death, the employee’s dependents are entitled to financial benefits. Contributions towards this scheme are made by both the employer and employees. The interest is then credited to the PF Account of the employee.

  • Insurance Plans: As you age, health issues become quite common. Having a Health Insurance plan is necessary as it will compensate for unexpected medical expenses. You can buy a Mediclaim policy for your family. Along with the Healthcare policy, you should also opt for a Life Insurance policy that helps to keep your family secured, in the case of your untimely demise. The Nominee is entitled to receive the death benefit.

  • Mutual Funds: Apart from the abovementioned investments, Mutual Fund is also one of the retirement investment solutions. Investment in Equity, Debt or Hybrid Mutual Fund schemes will help you to create a better corpus compared to FD, EPF or NPS. However, the returns are dependent on market conditions. You can easily start investing in a Mutual Fund online with the help of ICICI Bank’s Internet Banking or the iMobile Pay app.

These are some of the essential investment options that will help you achieve a comfortable life after retirement.

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