In this article we will walk you through the information required to lead a comfortable life after you retire from your job in India. Albeit, the topic requires us to determine an amount of money one will require in order to get retired in India but that cannot be answered accurately as the answer to it depends largely on a number of issues.
We, instead, will walk you through the necessary steps for better planning for your post-retirement life.
The basic questions that you need to answer to prepare for your post-retirement life in India may include your life style, your income, your expenses etc., and if you are married or not? How many children do you have if you are married? Where you want to live after you retire? Of course, there is a huge difference in the living standards of rural and urban dwellings which has a direct and deep bearing on your income and expenses and so on.
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Let’s now take a look at the steps one should take for a better future planning.
Step 1:- At this stage you should gather the personal information and the basic details such as your current age and retirement age etc.
Step 2:- In step two, note down your monthly expenses and break them down as monthly rent (if applicable), household expenses, shopping and dining, Healthcare and vacation etc.
Step 3:- In step three, note down your personal details such as number of children, their education and dependency on you etc.
Step 4:- In step 4, note down and calculate your existing investments for retirement such as the volume of your investment, where have you invested and the future prospects of your investment etc.
After these important steps, let’s take a brief look at the best retirement investment plans available for the Indians.
Mutual Funds:- Mutual funds, if properly invested in and managed over the years, can turn out to be dividends yielding for a longer period of time to come.
National Pension Scheme (NPS):- NPS is an Indian government’s initiative aiming at the benefit of all the citizens of India after they retire from their jobs.
Public Provident Fund (PPF):- It is a long term investment option offering guaranteed returns regulated by the Ministry of Finance, Government of India.
Employees Provident Fund (EPF):- The Employees Provident Fund Organization of India (EPFO) is responsible for overseeing and maintaining it. This scheme benefits salaried class who can use their savings here after they retire.
Atal Pension Yojana (APY):- This plan takes care of the unregulated segments of the society whose eligibility criterion is to be between 18 to 40 years of age with a savings account in a bank.
Bank Deposits (FDs):- An amount deposited under this scheme in a bank can get you a regular monthly income. ( Do you know that you can do bank deposit & online money transfer to India using ACE Money Transfer?)
Real Estate:- It is one of the safest options available for investment as real estate sells like hot cakes and makes your investment safe as well as cashable at any point in time.
Conclusion:- This piece has given us a deep and enough insight into knowing as well as understanding what it takes to retire in India as all the important questions have been elaborated here whose answers will determine how much money you require to lead a financially contended life after your retirement.
As mentioned in the start of this piece, your preferences and your current living standards put together will guide on what your post retirement life in India will look like.