Even by the time you retire, you will have completed the majority of your life’s tasks, leaving you free to pursue your interests and relax. The sole disadvantage of retirement is the lack of a consistent monthly income. Putting a retirement plan in place now will assist in fixing the problem. For the right estimate about retirement, opt for an online pension plan calculator.
Here are some strategies to assure a steady flow of money once you retire.
- First and foremost, opt for National Pension Scheme (NPS)
A pension policy is an economical and tax-efficient way to build a retirement fund. You can make a monthly, quarterly, or yearly contribution. When you create an NPS account, you are given a one-of-a-kind Permanent Retirement Account Number (PRAN) that is valid across India. As a result, if you intend to relocate to another city after retirement, no further steps are required. The NPS provides total openness and freedom in selecting pension fund programs. You can opt for schemes like the Saral pension scheme.
- One of the reliable sources, Unit-linked Insurance Plans (ULIPs)
Market-linked payouts are an added benefit of ULIP life insurance. As with any life insurance policy, the customer pays either an annual or a monthly premium. The remaining portion is invested in the market, while part of it provides life insurance. A ULIP is a very useful retirement tool since it is a long-term investment plan. You can receive a maturity benefit by selecting the insurance duration until retirement and paying premiums on a regular basis. The death benefit is paid to your family in the event of your untimely death. Tax breaks are also available under Section 80C with ULIP investments. Payouts from ULIP plans are also tax-free.
- Annuity Plan
The concept of annuity plans involves paying a lump sum to an insurance company in order to receive a regular income for the rest of your life. Due to this, you no longer need to keep paying the insurance at regular intervals after retirement in order to receive income benefits. The insurance companies promise a regular stream of income throughout your life. So, with a guaranteed monthly influx of income, you may remain stress-free. Some annuity arrangements also allow you to continue paying payments to your spouse after you die.
- Work as a freelancer
Sitting idle after having worked your entire life might be challenging. Instead, why not generate money from something you enjoy doing? This serves a dual purpose: it allows you to better use your time while also earning money. Make the most of your important job experience. Make a career as a consultant, instructor, or tutor. In this day and age, there are several part-time occupations available that can be done from the convenience of your own home.