Retirement Planning India: In today’s changing world, employed people are often worried about their retirement. Rising inflation, medical emergencies and job uncertainty have further increased this. But financial decisions taken on time can become the solution to your problem. If you make a plan for retirement according to time, it will not only reduce your stress but will also prepare a safe retirement plan for you.
Before preparing for retirement, you should know about some options like Systematic Investment Plan (SIP), Employees Provident Fund (EPF) and National Pension System (NPS). Besides, you should also know the right way to invest in them. So that your old age becomes not a burden but a pleasant journey of learning new experiences….
National Pension System (NPS)
NPS provides investors with stability as well as good growth through long term investments. This scheme has been specially designed keeping retirement in mind.
Systematic Investment Plan (SIP)
Investing in SIP has become a very popular investment instrument today. In this you invest in small amounts for a long time. Investors planning to build a large corpus prefer to do SIP. Under SIP you can get returns up to 12 percent annually.
Employees Provident Fund (EPF)
EPF is a safe retirement option for employed people. In which they get stability with interest. A lump sum amount at the time of retirement makes the old age of the employees secure.
How to divide the investment?
At the age of 20 to 30 years, the risk taking capacity is usually high, hence in this period, about 60-70 percent in SIP, EPF is already mandatory, whereas less part can be invested in NPS. Between the age of 30 to 40 years, one should maintain balance in both SIP and EPF, also gradually increasing the contribution in NPS can be a better option.
At the age of 50 years or more, you can invest less in SIP and increase contribution in NPS and EPF.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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