Retirement poses a big challenge: managing your money wisely for security. You want good returns, but you can't take too much risk. Finding the right balance is crucial. So, what to do with retirement money in India? Should you stick to safe choices like bonds, or mix in some stocks too? Let's explore what to do with money and how to strike a balance between risk and returns.
Best Investment Plans for Retirement
1. Invest in Managed Farmlands
In the last few years, managed farmlands have emerged as a new asset class for people who seek a retirement investment plan with stable returns. With a managed farmland, the investor doesn’t only enjoy the overtime and gradual appreciation of the land, but also the yearly returns in the form of selling the crops.
But, how does a retired professional invest in a managed farmland? This is where Nimbus Agro farms comes into play. Nimbus Agro Farms offers several projects for investors such as Nandi Farms Phase I, Nandi Farms Phase II, and Coconut Habitat Phase I. The first two projects are 13.2 acres while the last one is spread across 80 acres in the lap of nature.
With Nimbus, the investor buys the farmland and the company takes care of everything from paperwork to managing the plantation and everything in between. This not only offers a seamless experience but also allows you to enjoy the returns without getting engaged in farming. However, if you enjoy farming, Nimbus encourages the residents to chime in. On top of that, you get a yearly return of 8 percent.
Nimbus offers retired professionals an ideal investment opportunity. Here, they can enjoy their twilight years with peace of mind, knowing that their hard-earned money is well-invested and in trustworthy hands. So, if you are still wondering what to do with retirement money in India, managed farmlands are a great option.
2. Fixed Deposits with Banks and Post Offices
Fixed Deposits (FDs) offer a safe haven for your retirement funds. Despite the falling interest rates, FDs provide guaranteed returns, making them one of the best retirement investment plans. Senior citizens can enjoy higher interest rates and tax exemptions, enhancing post-tax returns.
3. Approved Pension Plans
For non-government employees, planning your pension is essential. Pension plans allow you to receive regular income post-retirement, ensuring financial stability. Consider investing in pension schemes to cover your monthly expenses and healthcare needs, making them one of the best investment plans for retirement.
4. Senior Citizens Savings Scheme (SCSS)
Specifically designed for senior citizens, SCSS offers attractive interest rates and tax benefits. With a maximum investment limit of Rs. 15 lakh and a tenure of 5 years (extendable by 3 years), SCSS provides a secure avenue for retirement savings. Tax deductions under Section 80C make it even more appealing for tax-assessees.
5. Equity Linked Savings Schemes (ELSS)
While equity funds carry market risks, ELSS can be a rewarding option for retirees, especially tax-assessees. With a shorter lock-in period of 3 years, ELSS offers potential wealth creation opportunities. Tax benefits under Section 80C and concessional capital gains tax rates add to its appeal, making it a viable investment choice.
6. National Savings Certificate (NSC)
If you don’t know what to do with retirement money, NSC is a great option. NSC, backed by the government, offers steady returns and safety for your investment. With a minimum contribution of Rs. 100 and no maximum limit, NSC provides flexibility to investors. Tax exemptions under Section 80C and the option for loans against NSC make it a favorable investment avenue.
Final Thoughts - Retirement Investment Options
Knowing what to do with retirement money requires careful consideration of risk and returns. By diversifying your portfolio with a mix of secure options like FDs, SCSS, and NSC, along with potential wealth generators like ELSS, you can ensure a financially stable retirement. Remember, the key lies in finding the right balance tailored to your needs and risk appetite. Start planning your ideal retirement today for a secure tomorrow!
