How to reset your retirement savings and maximise returns?

You must have been saving for your retirement for quite a few years now? Well, you should have them assessed once in a while (preferably once every financial year). This can be done with the help of various financial websites, professional investment planners or by yourself. If you want to know why you should have a retirement plan, then click here.

5 ways to reset your retirement savings and save more in 2022

You must have been saving for your retirement for quite a few years now? Well, you should have them assessed once in a while (preferably once every financial year). This can be done with the help of various financial websites, professional investment planners or by yourself. If you want to know why you should have a retirement plan, then click here.

Also Read:  What is National Pension System and How it Works?

What are the advantages of reassessing your retirement savings?

Reallocate to a new fund if your current fund is not doing too well.

Switch to Fixed Deposits for safer and surer returns, if market-related funds keep going up and down. 

Streamline your retirement benefits so that they are in sync with the safer and time tested trends in the market. 

To be able to effectively restructure your retirement funds, it is important to know the type of safe available retirement plans. Since there are plenty of saving options let us talk of 5 standard types that investors generally opt for, especially while thinking of retirement. 

1. Fixed Deposits (FD): These are safe and provide guaranteed returns. But please note that the returns are low in FDs and sometimes an additional market-linked plan is needed to bolster your returns.

Also read: How To Save Income Tax by Saving on Fixed Deposits

2. National Pension Scheme (NPS): This is a Government of India initiative for retiring employees. This scheme helps the employee to continue to get periodic incomes after retirement. There are many schemes and fund managers to choose from Debt or Equity funds.  

Also Read: How NPS Performed in the Last 5 Years  

3. Employees Provident Fund (EPF): This is generally for all organisations where there are 20 or more employees. The employer and employee contribute to a common fund which the employee can withdraw post-retirement including the interest accrued.

4. Unit Linked Insurance Plan (ULIP) and Annuities: Other than health insurance and life insurance, most insurance companies provide ULIP and annuities. The advantages are that the investor needs to pay a premium that covers an income plan post-retirement along with health coverage and insurance coverage. However, it is important to note that the insurance company's charges for providing this are on the higher side compared to other options.

Also read: ULIP Vs Mutual Funds - Where to Invest?

5. Mutual Funds: These are by far the most popular among retirement plan investments. It depends on the age of the investor as to the type of fund he would opt for. Generally, a person in his 30s can opt for an Equity-based fund as these provide higher returns but has their share of risks which a younger person can easily take. An equity-based Systematic Investment Planning (SIP) are very popular as they provide high returns, you don’t need to track the market closely and with a lower investment, it develops a habit of frequent saving. If you don’t have a long period for retirement then a Debt-based fund is a better option as returns are more secure.

So if you haven’t started planning your retirement savings, do so now and at the same spend more time knowing which type of investment will help you save more. 

NEWSLETTER

Related Article

Premium Articles