Financial Products to Invest in Post Retirement

After working for nearly 30-40 years, you hang up your boots one day. That's it. I am retiring and planning to spend all of my time with family members who are my source of inspiration and strength. Retirement is undoubtedly a phase where you don't have the pressure of waking up early, getting ready and going to the office. Not to forget the transportation hassles and work pressure in between.

But does retirement mean the end of your financial journey or say financial prudence? Maybe not! You still have something to do to stay financially strong all through the rest of your life. In this blog, we will explain the financial journey you should embrace after retirement. Take a look!

The Products You Should Invest in After Retirement

With retirement, you receive a windfall of savings and investments such as provident fund dues, mutual fund/stock investment proceeds, etc. Ensure you make the best use of these to live happy and strong after retirement. So, here's a financial planner for those who have retired or will retire soon.

Opt for a Systematic Withdrawal Plan in Equity Mutual Fund

Out of the savings and investments accumulated till retirement, allocate 30% in equity mutual funds with a Systematic Withdrawal Plan (SWP). It works by allowing you withdrawals at regular intervals - Monthly, Quarterly, Half-yearly or Yearly. Assuming you don't have a regular source of income after retirement, choosing the monthly option is advised to help sustain your lifestyle.

As an investor, you can either choose the monthly withdrawal or the capital appreciation amount. In case you opt for monthly withdrawal only, the balance amount will likely grow higher owing to potentially greater returns.

Invest 50% of Your Retirement Funds in Fixed Deposits

As risk appetite wanes once you hit retirement, it is advised to prioritise safe investment options. The best way to stay safe as well as reap higher returns in contemporary times is by putting money in fixed deposits that assure capital safety no matter what. The interest rate, as of now, stands at up to 9.50% per annum. You can invest in it for a minimum and maximum of seven days and 10 years, respectively.

Investing 50% of your corpus in fixed deposits makes sense. You can choose the regular income option of a fixed deposit to match the lifestyle you had before retirement. It offers payouts at monthly, quarterly, half-yearly or yearly intervals.

Senior Citizen Health Insurance

Don't forget to buy a health insurance policy crafted as per your needs. As you move beyond 60, you will likely have more illnesses compared to people younger than you. So, the health insurance you buy should cover a wide range of illnesses for a premium you can pay comfortably. Although premiums surge in a senior citizen health insurance policy, you can always compare and find the right deal that helps you withstand healthcare inflation comfortably.

Summing Up

Retirement is a great phase where you leave all the pressure behind and enjoy quality time with your family. With a bit of financial planning, you will enjoy your post-retirement life even more. With that, we at zarooribaathai.in wish you a glorious journey. For more updates on personal finance and other important stuff, follow us.