How to Start Saving for Your Retirement
At 30, if you imagine yourself sitting by the poolside, having a luxurious life when you turn 60, this is the right time to make your wish come true.
Here are a few ideas that will help you secure your future and make your life stress-free during your retirement period.
Start with small savings!
SIP- Systematic Investment Plan helps you invest a fixed amount of money every month. SIP accounts can be opened with an amount as low as Rs.500. You can invest this money in a mutual fund scheme of your choice and budget your risk appetite. In your retirement period, you won’t just have an accumulated amount of savings but also an additional amount of interest.
Fixed Deposit
The name says it all! Deposit a fixed amount of money for a fixed period of time. The time period of a fixed deposit varies from 1 month to 5 years. This will help you save for a longer period of time and the interest amount is like a cherry on the top! The money saved by the end of the FD plan can be used for other investments in order to increase your savings for a bright after-retirement life. There are also certain FDs that offer Tax benefits.
Insurance
Insurance isn’t the first thing to think of for a retirement plan. However, this is a better way to invest for a secure future. You can avail plenty of insurance schemes in different sectors that can protect you from unexpected incidents. It also financially secures your family in your absence. This plan does not only help you enjoy a protected future after retirement, but also saves you from the pressure of things going haywire anytime.
ULIP (Unit Linked Insurance Plan)
It’s a life insurance product, which provides you a risk cover along with investment options to invest in various sectors such as stocks, bonds or mutual funds. This plan offers tax benefits and is completely flexible and transparent.
NPS (National Pension Scheme)
It’s a retirement savings scheme launched by the Government of India. This plan allows you to invest money on a monthly basis or through a systematic saving plan during your working life to get an adequate retirement income.
Now that you have the ideas in place, get started on saving! Go ahead, start building a more financial and secure future.