Getting income during Retirement

October 28, 2020 Finance Talk Valli Sarvani No comments

Retirement is a phase that every employee has to reach at some point. Depending on the planning and preparation, it can either be fun or a complete stressful mess. By planning your retirement early, you can rest assured without financial stress in your old age.

You can plan out how to get income from various sources during retirement.

Here are some of them:

Pension Plans

Pension plans are the most obvious solution to financial stability during retirement. These plans need to be planned from a young age. People who earn less amount of basic salary can benefit from these plans as their PF (Provident Fund) might not be huge. Currently, many types of pension plans are available. Pick on that fits your situation the best.

Income from rents

If you are young, buying a property and diversifying your investment can be a great idea. If you own a house or build an apartment complex on your land, the rental income can serve you during retirement.

Five-year tax-saving FDs

These kinds of FDs are available to take at all post offices and banks. These FDs provide tax benefits under section 80C. They give you a guaranteed interest for your investments. You can opt for periodic payout options as well.

Mutual Funds

Having Mutual Funds in your portfolio of investments can make it diverse and secure. Mutual Funds offer good returns over a long period. You can opt for a monthly plan where you invest a certain amount of money every month. These investments can give great returns. They can have a small amount of volatility due to market conditions.

Starting a business

This option is for those who want to have something to do even during retirement. If you think you might be bored, starting a small business with your savings can be quite helpful and financially rewarding during retirement. Using your hobbies as a business idea can turn out to be a wonderful idea.

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