6 Ways to Ensure Retirement Plan with Regular Income

With limited income option, never ending expenses and rising cost of living, there may be instances where you’re not able to save enough for later years. However, with right investment decisions you can ensure to have regular income at the time of retirement.Below are the six retirement plans you can opt for:

1. National Pension Scheme (NPS): For retirement planning, National Pension Scheme or NPS is an ideal government-sponsored investment scheme. It allows you to contributemonthly, quarterly or yearly.On retirement, account holders can withdraw a part of the corpus in lumpsum and the rest of the amount to buy annuity plan to ensure regular income. To subscribe for the scheme, you need to comply with Know Your Customer norm.
2. Unit-linked Insurance Plans (ULIPs): ULIP is a combination of both protection and saving in a single plan. To subscribe for the plan, the policyholder is requiredpremium every month. Along with the life cover benefit, the premium amount helps you realize the benefit of wealth creation for your loved ones.
3. Retirement Plans: Life insurance companies offer retirement plans that offer the benefit of both investment and insurance. Most retirement plans comprise of accumulation phase,wherein you are required to pay premium regularly. During the policy tenure, the money keeps on accruing. Once the accumulation stage is complete, the vesting phase begins whereinyou are liable to receive regular pay-outs.
4. Annuity Plans: An annuity plan allows you to receive regular income after retirement. If you opt for an annuity plan, you are required to pay lump sum or regular money for the accumulation period.There are various types of annuity plans and these are classified based on the timing of the benefit, coverage of the benefit and variability of the benefit.
5. Rental Income: The real estate sector is growing in terms of popularity in India. It will help you generate good source of monthly income at the time of retirement if you plan to rent the property. In order to benefit from a property, it is crucial that you invest in areas where there is high demand and high prices.
6. Take Up A Job or Freelance: As a retiree, you can take up freelancing, do teaching, become in-house tutor or work as a consultant.This will help you save money as well as allow you to utilise your valuable work experience effectively.

You should do your research and analysis before investing in any scheme. It is also crucial that you have a transparent and friendly relation with the finance companyso that you have smooth investing experience post retirement.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.