Retirement is regarded as the golden years of your life when you start your second innings. So, if you haven’t started planning for your retirement income yet, you need to start doing it right away! However, if you are reading this article, it means you have started planning for your second innings.
The earlier you build your retirement corpus, the better your chances of having a worry-free life. However, with skyrocketing expenses and limited income options, how to plan for a regular income after retirement? This is why you need to make the right investment choices during your working years to ensure regular income during your retired life.
This article will talk about a few guaranteed return insurance plans that you should opt for to make your retired life financially safe. Let’s get started.
5 Investment Options for a Financially Secured Retired Life
When you reach the retirement age, you enter into the asset distribution stage in life. All the money you have accumulated until now will be kept to meet your retirement expenses. Hence, you should move your corpus of funds from the risky avenues to the safer investment options that can help you earn regular income post-retirement.
Here are 5 different ways of making sure you have regular income post-retirement:
- NPS or National Pension Scheme
NPS is the ideal option to plan for your retirement corpus. This is a government-sponsored retirement fund option where you need to contribute equal amounts on a monthly, quarterly, or annual basis during your working years. Then, on retirement, you will be able to withdraw a lump sum amount and invest the rest in an annuity plan to ensure regular income.
- ULIPs or Unit Linked Insurance Plans
ULIP policies are the combination of savings plans along with market-linked benefits. These life insurance products can provide several life cover and death benefits. To avail of its benefits, you need to pay premiums monthly or yearly.
ULIP is a long-term investment option and hence, could be an ideal instrument to build your retirement corpus. You can pick a policy period until retirement and avail the maturity benefit post-retirement. Also, in case of your death during the policy period, your beneficiaries will get the death benefit of the total sum assured.
- Annuity Plans
In this plan, you need to pay a lump sum amount to an insurer who will ensure regular payouts throughout your life. Here, there is no need to pay premiums every month or every year for a long period to avail of the income benefits post-retirement. This is a kind of a guaranteed return plan which will offer you a fixed income for the later parts of your life. Several reputed insurers like the Tata AIA life insurance company offers insurance with guaranteed returns like this for their customers.
- Guaranteed Return Insurance Plans
The guaranteed return insurance plans are a kind of savings plan that will help you meet the major milestones in life post-retirement. Basically, with guaranteed return insurance plans, you can turn your dreams into reality even while enjoying the second innings of your life.
With this plan, you will be able to avail yourself of life insurance coverage benefits and guaranteed retirement income with the flexibility of paying a lump sum premium instead of monthly or yearly premiums. Additionally, you will have the option of choosing different rider plans for enhanced financial protection.
- Property Rental Income
Finally, if you own a second residential or commercial property, you can let it out on rent or lease for equal monthly payments. Likewise, if you think you will be able to build a significant retirement corpus, you can purchase a property and then let it out for rent or lease to receive equal monthly income from the same. Rental income is a vital source of income for several retirees.
Planning for your retirement is as important as planning a family. Believe it or not, as soon as you will start planning for your retired life, the better it will be for you to secure your future financially. Keeping in mind the current lifestyle scenario whenever almost every single thing is expensive (including healthcare), it is prudent for every single person to have a solid retirement plan in place to be able to build a robust retirement corpus.