Retirement is the time to sit back, relax and indulge in your favourite hobbies. However, in order to be at ease after retirement, having a steady income is of utmost importance. If your job does not offer retirement perks like pension, it is essential to start planning for your retirement as early as possible. Here are six ways to secure a regular income after retirement: –
National Pension Scheme (NPS)
The NPS is a tax efficient and low-cost retirement plan that can ensure a regular income after retirement. It gives you the flexibility to contribute either monthly, quarterly or annually. By contributing regularly throughout your working life, you can enjoy a regular income after retirement. On opening an NPS account, you will be provided with a unique Permanent Retirement Account Number (PRAN), which can be used across India. So even if you move to other cities after retirement, you can avail its benefits without any additional procedures.
Unit-linked Insurance Plans (ULIPs)
A ULIP is a market-linked investment plan cum Life Insurance product which is an ideal instrument for your retirement. Just like a Life Insurance policy, you are required to pay an annual/monthly premium towards ULIPs. A portion of the premium is used to provide life cover while the other is invested in the market. When you opt for a policy period until retirement and pay the premium regularly, you can secure a substantial maturity benefit. And in the event of your untimely demise, your family will receive the death benefit. Moreover, the premium paid towards ULIPs is exempt from tax under section 80C, while the maturity benefits are also tax-free.
Under annuity plans, you are required to pay a lump sum amount to a life insurance company who in turn pays you a regular income throughout your life. Hence, with annuity plans, you don’t have to pay the insurer regularly to avail income benefit after retirement. Hence, investing in annuity plans is also a stress-free way to ensure regular income after retirement.
Rental income is a reliable income option for retirement. But given the skyrocketing real estate prices, the initial investment for this option is huge. Nevertheless, investing in real estate is a good alternative as it has the scope for capital appreciation.
Try Freelancing or Working Part-Time
After having worked most of your life, sitting idle after retirement can be difficult. Instead of idling, why not make money out of something you love to do? That way, you can make efficient use of your time and also earn some income. You can become a consultant, teacher, tutor or anything you like. What’s more, there are several online jobs that can also be done on a part-time basis from the comfort of your home.
At Finserv MARKETS, you can choose from a selection of ULIP plans like Bajaj Allianz Future Gain and Bajaj Allianz Life Goal Assure to financially secure the golden years of your life. To apply or know more about our retirement plans visit Finserv MARKETS.
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