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January 23, 2024

Retirement

Retirement

What is the Retirement Age in India?

Retirement is one of the biggest milestones in an individual’s life. But unlike other things, we never talk about the […]

Retirement is one of the biggest milestones in an individual’s life. But unlike other things, we never talk about the age at which one should retire. Most of us don’t know the ideal retirement age in India.

But first, we must understand what retirement exactly means. It is the age when a person stops working and becomes eligible for a pension or other benefits without working for money or, in other words, retirement benefits. Retirement age varies depending on the type of employment, sector, and country. In this blog, we will explore the retirement age in India for different categories of workers and the factors that influence it.

Retirement Age In India

Unlike some countries with a uniform retirement age for all citizens, India has different retirement ages for different types of workers. The retirement age in India depends on the type of employment, sector, and state. Generally, the legal retirement age in India ranges from 55 to 65 years, with some exceptions.

New Retirement Age In India

In recent years, the retirement age in India has been changed for certain categories of employed professionals. The central government has increased the retirement age of some of its employees to address the shortage of skilled manpower and to retain experienced professionals. For example, in 2019, the retirement age of doctors working under the central health services was increased from 62 to 65 years. Similarly, in 2020, the retirement age of central armed police forces personnel was increased from 60 to 65 years.

High Court Judge Retirement Age in India

The retirement age of high court judges in India is determined by the Constitution of India. According to Article 217 of the Constitution, the retirement age of high court judges is 62 years. However, a high court judge can be appointed as a Supreme Court judge, in which case the retirement age is 65 years, per Article 124 of the Constitution.

Retirement age in India for Central Government employees

The Central Civil Services (Pension) Rules, 1972, fixed the retirement age in India for central government employees. According to these rules, the retirement age of central government employees is 60 years unless otherwise specified. However, there are some exceptions to this rule, such as:

The retirement age for professors, principals, and directors of academic institutions under the central government is 65 years, per the University Grants Commission Regulations, 2018.
The retirement age for scientists and technical officers of the Defence Research and Development Organisation (DRDO) is 60 years, with an option to extend up to 64 years, as per the DRDO Recruitment Rules for Scientist B (Direct Recruitment).
The retirement age for chairpersons and members of statutory and regulatory bodies under the central government is 70 years, per the Department of Personnel and Training Guidelines on Tenure, Terms, and Conditions of Appointment of Chairpersons/Members of Regulatory Bodies and Tribunals.

Employees’ retirement age in India for the private sector

The retirement age in India for private sector employees is not fixed by law. Still, it depends on the contract of employment, the policies of the employer, and the mutual agreement between the employer and the employee. Generally, private sector employees’ retirement age in India is 58 or 60 years. Still, it can vary from 55 to 65 years, depending on the industry, the nature of work, and the performance of the employee.

Army Retirement Age in India

The retirement age in India for army personnel depends on the rank, the service, and the option of the individual. The retirement age in India for army personnel ranges from 35 to 60 years, with some exceptions. For example, the retirement age for:

Sepoys, naiks, havildars, and equivalent ranks is 35 years or 17 years of service, whichever is earlier, as per the Indian Army website.
Junior commissioned officers (JCOs) and equivalent ranks are 48 years or 28 years of service, whichever is earlier, as per the Indian Army website.
Commissioned officers (COs) and equivalent ranks are 54 years or 30 years of service, whichever is earlier, per the Indian Army website.
Army Medical Corps officers’ retirement age is 60 or 31 years of service, whichever is earlier, per the Indian Army website.
Army dental corps officers’ retirement age is 60 or 30 years of service, whichever is earlier, per the Indian Army website.

Police Retirement Age in India

The retirement age in India for police personnel depends on the state, the rank, and the service. The retirement age in India for police personnel ranges from 55 to 62 years, with some exceptions. For example, the retirement age for:

Constables, head constables, assistant sub-inspectors, sub-inspectors, and inspectors are 55 or 60 years old, depending on the state, as per the Police Reforms Bill Summary by PRS Legislative Research.
Deputy superintendents of police, assistant commissioners of police, and equivalent ranks are 58 or 60 years, depending on the state, as per the Police Reforms Bill Summary by PRS Legislative Research.
Superintendents of police, deputy commissioners of police, and equivalent ranks is 60 years, as per the Police Reforms Bill Summary by PRS Legislative Research.
Additional directors general of police, directors general of police, and equivalent ranks is 62 years, per the Police Reforms Bill Summary by PRS Legislative Research.

Will the retirement age be increased to 62?

There have been some speculations and rumors that the central government may increase the retirement age of central government employees from 60 to 62 years. However, there has been no official confirmation or announcement from the government. The government has clarified that there is no proposal to change the retirement age of central government employees. Therefore, the retirement age of central government employees remains 60 years unless otherwise specified.

Conclusion

Retirement age in India is a complex and dynamic topic, as it varies depending on the type of employment, sector, and state. Retirement age in India is influenced by various factors, such as the availability of skilled manpower, the demand for experienced professionals, the financial implications, and the social and economic conditions. Retirement age in India may change in the future, as the government and employers may revise their policies and practices to suit the changing needs and expectations of the workforce and society.

Know more about: MEDI ASSIST HEALTHCARE IPO

What is the retirement age in India?
The retirement age in India varies depending on the type of employment, sector, and state. Generally, it ranges from 55 to 65 years, with some exceptions. For more information, please read our blog on Retirement Age In India.
What is the right age for retirement?
The right age for retirement depends on various factors, such as your lifestyle goals, financial capability, health condition, and personal preference. Some people may want to retire early, while others may want to work longer. However, there are some general guidelines that can help you decide the right age for retirement, such as planning based on your expected life span, considering the impact of inflation, taxes, and health care costs, assessing your current and future sources of income and expenses, and evaluating your personal and professional satisfaction and goals. For more tips, please read our blog on How to Choose the Right Age for Retirement.
Can I retire at 62 if I am 58?
Yes, you can retire at 62 if you are 58, provided that you have enough savings and income to support yourself and your dependents after retirement. However, there are some pros and cons of retiring at 62 that you should be aware of. Some of the pros are that you can enjoy more free time and flexibility, avoid the stress and pressure of work, and take advantage of the early retirement benefits offered by some employers. Some of the cons are that you may receive lower Social Security benefits, face higher health care costs, and outlive your savings. Therefore, before you decide to retire at 62, you should weigh the pros and cons carefully and consult a financial planner or advisor. For more details, please read our blog on The Pros and Cons of Retiring at 62.

December 22, 2023

Retirement

Retirement

Want to Retire at 45? Here are 7 Steps to Make it Happen

Dreaming of long vacations, relaxed mornings, and doing all those things you always wanted to do? Early retirement might sound […]

Dreaming of long vacations, relaxed mornings, and doing all those things you always wanted to do? Early retirement might sound like a distant dream, but guess what? It’s closer than you think. There’s no magic involved. All it takes is smart planning, disciplined savings, investments, and healthy living.

Can India Bridge the Retirement Investment Gap?

The retirement-age population in India is expected to rise by 41% by 2031; however, only 32% have opted for retirement-catered solutions. According to a study by ICICI Prudential Life Insurance study titled ‘Is India prepared for retirement:

65% want annuity products, but only 11% actively saving.
Maintaining a current lifestyle in retirement is a top priority for 83%.
Bright spot: A new generation starts planning early at 40, saving 17% of income.
Retirement goals include travel, staying connected, and financial security.

What does retiring early mean?

It doesn’t mean you stop working. It means your savings have reached such a stage that you can live through the returns you generate. That is true financial independence. It means your investments generate enough returns to live your life and meet your wants and needs, so you do not have to work for money.

1. Figure Out Your Retirement Number

Before diving into investment strategies, figure out the amount you need to live comfortably post-retirement. Consider your current expenses, inflation, healthcare costs, and desired lifestyle. A simple rule of thumb suggests 70-80% of your pre-retirement income.

If you plan to retire at 45 and are currently 30, you have 15 years to build up a fund that will cover your living expenses for 30-35 years after your early retirement. To make this possible, you’ll need to save an amount that is 30 times your annual expenditure. The question is, how can you achieve this?

Once you reach 30, you should aim to save almost 70 percent of your total earnings every year. It means you must save more than twice the amount you spend annually. By following this approach, you can save for two years with every passing year while keeping a 10 percent margin for inflation, contingencies, and other uncertainties.

So, if your annual expense is ₹10 lakh. Then you must be earning ₹32 lakh (after tax) so that you can 70 percent of it to be able to save ₹22 lakh, which is nearly 10 percent more than the two-year expenses:

(10X2) + (10% X 20) = 20 + 2 = ₹22 lakh.

The remaining 30 percent of 32 lakh is ₹9.6 lakh or nearly ₹10 lakh — which you can spend.

If you maintain the current saving rate over the next 15 years, you can create a portfolio that will last more than double the number of years you saved, which is 30 years. As you progress in your career, your income will likely increase, and you can save faster than before. This additional income can be used to cover unexpected expenses.

Retirement at 45 may sound a little surprising, but it is possible to do so. Remember, it is a slow process that can’t be achieved overnight. It needs planning.

2. Start Saving Early, Watch it Grow

The earlier you start, the easier it gets. Compound interest works wonders over time. Save at least 15-20% of your income monthly. Diversify your savings across multiple instruments like PPF, EPF, NPS, mutual funds, and stocks. Utilize platforms like SIPs (Systematic Investment Plans) for disciplined investing. You can also use our SIP calculator for more details.

Now, saving Rs. 10,000 per month through SIPs in diversified equity funds with an 8% average return could potentially reach Rs. 2.4 crore in 30 years. If you intend to live a retired life for 30 years, saving 70% of your income for at least 15 years is recommended. This will ensure you have sufficient funds to cover your expenses in the long run. The remaining 30% of your income can cover your current expenses. Remember, this is just an estimate, and actual returns may vary.

3. Debt Free = Stress Free

High-interest loans can eat up your retirement savings. So, focus on clearing debts before putting too much into investments. Try to explore ways to combine loans or get lower interest rates. Remember, a stress-free mind is vital to a happy retirement.

4. Add To Your Skills and Look for a Side Income

Multiple income sources are like a safety net and can boost your retirement savings. Explore your skills and find a side business you enjoy – freelancing, online businesses, consulting, or even teaching. Every bit adds up and provides financial security. Remember, a side hustle is not your chief source of income.

5. Create a Realistic Budget and Stick to it

Track where your money goes, spot extra expenses, and cut back on unnecessary, fancy stuff. Every rupee saved today brings you closer to your retirement goals. Remember, a budget can help you reach your goals faster.

6. Seek Professional Guidance

A qualified financial advisor can help you build a personalized retirement plan based on your risk appetite and goals. Their expertise can save you time and money in the long run.

7. Don’t Forget Healthcare

Healthcare costs in India are rising faster than inflation. Studies show they’ve increased by around 15% annually in recent years. That means a treatment costing Rs. 10,000 today could cost Rs. 26,533 in just 10 years! According to a Max Bupa Health Insurance survey, 75% of senior citizens in India spend over Rs. 15,000 annually on Healthcare. Remember, investing in a good health insurance plan early on is a wise thing to do.

Think of retirement planning as a lifelong journey. Stay healthy and active—it’s good for you and saves money on Healthcare later. Enjoy the process, adjust plans as needed, and get advice from financial experts. That way, you can retire confidently and enjoy the freedom it brings.

After creating a substantial fortune in 15 years, you can start withdrawing 3 percent of it each year, while the remaining portion of the fund can be kept invested. It will allow the fund to grow exponentially over the next 30 years, ensuring that the fund never runs out of money during its lifetime.

August 25, 2023

Retirement

Retirement

14 Best Places To Live After Retirement In India

Retirement marks a significant transition in life. Starting from working hard to build a life and choosing to leave work […]

Retirement marks a significant transition in life. Starting from working hard to build a life and choosing to leave work life behind permanently, It is time to reap the rewards of hardship and dedication. While some retired people set sail on voyages worldwide, others look forward to spending their time in relaxation and comfort.

While retirement in India offers the option of a shift of pace and opportunities in terms of infrastructure, healthcare facilities, and good connectivity, you must be practical and thoughtful about the shifting times. Around the world, rising inflation, economic instability, and the loss of money value increase the cost of living.

List of the Best Places to Live After Retirement in India

Goa

Known for its stunning beaches, vibrant culture, and laid-back lifestyle, Goa has become a magnet for retirees seeking a peaceful existence. The demand for real estate is increasing rapidly, and investing at the right time can help you plan your future. The attractive destination offers clean air, facilities of all kinds, transportation, and a network. The weather also does not turn cold, and many activities can be explored.

Cost of Living: Moderate to high
Monthly Rent: Approximately 20K for a 3BHK
Air Quality: Good
Climate: Tropical and sunny as it is close to water bodies
Public Transport System: Transportation in South & North Goa is mostly via taxis, which can be expensive. However, scooters on rent are easily available
Medical Facilities: Goa has good hospitals with modern facilities, internationally qualified doctors, and trained staff.

Pune

Another place for retirement in India is Pune, where traditions meet modernity. Known as the “Oxford of the East,” Pune balances traditional charm and modern amenities. The city is known for its affordability, amenities, and robust educational and healthcare facilities. Pune holds a historic charm of its own. Easy travel and pleasant weather are add-ons.

Cost of Living: Moderate to high (for a family)
Monthly Rent: Approximately 20-40K for a 3BHK
Air Quality: Moderate
Climate: Summers can be extremely hot. Winters are pleasant
Public Transport System: Buses and autos are available for moving in and around Pune
Medical Facilities: More than 550 medical centers. Pune is emerging as a top city in the healthcare sector

Coimbatore

Nestled in Tamil Nadu, Coimbatore is gaining popularity as a retirement destination. The city offers a peaceful atmosphere and a comfortable lifestyle. The cost of living is also not too high compared to other major cities. Coimbatore is growing at an unprecedented pace and already has a pleasant climate, access to quality healthcare, and well-developed infrastructure, making it an excellent choice for retirees seeking a peaceful yet dynamic setting.

Cost of Living: Low to moderate
Monthly Rent: Approximately 20K for a 3BHK
Air Quality: Good
Climate: Summers are dry and humid. Usually hot all year round.
Public Transport System: Buses are available at a good frequency, for in and around Coimbatore and even out-station
Medical Facilities: Coimbatore is known for good healthcare facilities and experienced doctors

Dehradun

Dehradun is next on our list of places to live after Retirement in India. Stepping into the foothills of the Himalayas, Dehradun offers a tranquil environment and pleasant weather. The city provides good healthcare facilities, a low crime rate, and a range of outdoor activities, making it ideal for retirees who enjoy a slower pace of life. It is a well-connected transportation network that ensures easy access to essential services. There are many other places that you can also consider.

Cost of Living: Moderate
Monthly Rent: Approximately 25-30K for a 3BHK
Air Quality: Good
Climate: Summers are pleasant, and winters get colder towards December-January
Public Transport System: Buses and auto rickshaws are available for traveling within Dehradun
Medical Facilities: Dehradun has many reputed hospitals and a good healthcare set-up

Chandigarh

Located in the heart of north India, the small towns of Punjab and the upcoming cities like Panchkula, Mohali, and Chandigarh are growing rapidly. A green city with lush houses and spacious buildings has been the ideal target for many retirement homes. Not to forget the proximity of the Himalayan range. Also known as the first planned city of India, it is growing rapidly. According to reports, Chandigarh has, in recent years, opened its doors to many investors and buyers. The city is easily accessible by public transport, train, air, or private vehicles.

Cost of Living: Moderate to high (for a family)
Monthly Rent: Approximately 25-30K for a 2BHK
Air Quality: Good
Climate: Summers are pleasant, and winters get colder towards December-January
Public Transport System: All places are easily accessible via auto-rickshaws
Medical Facilities: Good medical facilities

Pondicherry

Pondicherry, also known as Puducherry, is a charming coastal city known for its French colonial architecture, serene beaches, and spiritual atmosphere. Retirees can enjoy a laid-back lifestyle amidst tranquil surroundings, with opportunities for leisurely walks along the promenade and yoga and meditation retreats. The city’s vibrant cultural scene, with its blend of Indian and French influences, offers retirees ample opportunities to engage in cultural activities, art exhibitions, and culinary experiences.

Monthly Rent: Approximately INR 15,000 for a 2BHK apartment

Cost of Living: Moderate

Air Quality: Good
Climate: Tropical climate with moderate temperatures year-round
Public Transport System: Well-connected by buses and auto-rickshaws
Medical Facilities: Good healthcare facilities with hospitals and clinics offering modern services.

Kasauli

Nestled in the Himalayan foothills, Kasauli is a picturesque hill station known for its lush greenery, colonial charm, and panoramic views of the surrounding mountains. Retirees can enjoy a peaceful and tranquil environment, with opportunities for nature walks, birdwatching, and exploring the town’s quaint cafes and markets. The city’s serene ambiance and clean air make it an ideal retreat for retirees looking to escape the hustle and bustle of city life and reconnect with nature.

Cost of Living: Moderate
Monthly Rent: Approximately INR 20,000 for a 2BHK cottage
Air Quality: Excellent
Climate: Pleasant climate with cool summers and mild winters
Public Transport System: Limited public transport, but easily accessible by private vehicles
Medical Facilities: Basic medical facilities are available, with larger hospitals in nearby towns

Delhi

Delhi, the capital city of India, offers retirees a mix of culture, history, and modern amenities. With its vibrant markets, historical landmarks, and diverse culinary scene, retirees can immerse themselves in the rich tapestry of Delhi’s heritage while enjoying the comforts of urban living. The city’s well-connected transport system and world-class healthcare facilities ensure that retirees can access all necessary amenities and services. This makes it a popular choice for those seeking a dynamic and cosmopolitan lifestyle in their retirement years.

Cost of Living: Moderate to high
Monthly Rent: Approximately INR 25,000 for a 2BHK apartment
Air Quality: Varied, with pollution levels higher in certain areas
Climate: Hot summers and cold winters
Public Transport System: Well-developed metro rail network, buses, and auto-rickshaws
Medical Facilities: Excellent healthcare facilities with top hospitals offering advanced treatments.

Bengaluru

Bengaluru, often called the Silicon Valley of India, is a vibrant metropolis known for its pleasant climate, green spaces, and cosmopolitan culture. Retirees can enjoy a blend of modern amenities and cultural experiences, with opportunities for leisure activities, cultural events, and wellness retreats. The city’s thriving tech industry and bustling startup scene create a dynamic and vibrant atmosphere, attracting retirees looking to stay intellectually engaged and socially active in their retirement years.

Cost of Living: Moderate to high
Monthly Rent: Approximately INR 22,000 for a 2BHK apartment
Air Quality: Moderate
Climate: Pleasant climate with mild temperatures year-round
Public Transport System: Well-connected by buses, metro rail, and auto-rickshaws
Medical Facilities: Excellent healthcare facilities with renowned hospitals and medical institutions

Ahmedabad

Ahmedabad, the largest city in Gujarat, offers retirees a mix of cultural heritage, culinary delights, and modern infrastructure. With its rich history, vibrant markets, and friendly locals, retirees can immerse themselves in the colorful tapestry of Gujarati culture while enjoying a comfortable and affordable lifestyle. The city’s well-preserved historical landmarks, such as the Sabarmati Ashram and Sidi Sayyed Mosque, offer retirees opportunities to explore and appreciate the city’s cultural heritage.

Cost of Living: Moderate
Monthly Rent: Approximately INR 18,000 for a 2BHK apartment
Air Quality: Moderate
Climate: Hot summers and mild winters
Public Transport System: Well-connected by buses and auto-rickshaws
Medical Facilities: Good healthcare facilities with hospitals offering quality medical services

Bhubaneshwar

Bhubaneshwar, the capital city of Odisha, is known for its ancient temples, serene lakes, and green spaces. Retirees can enjoy a peaceful and relaxed lifestyle amidst the city’s cultural heritage, with opportunities for leisurely walks in parks, visits to temples, and cultural festivals. The city’s well-maintained parks and gardens, such as the Ekamra Kanan and Biju Patnaik Park, offer retirees serene spots to unwind and connect with nature.

Cost of Living: Moderate
Monthly Rent: Approximately INR 16,000 for a 2BHK apartment
Air Quality: Good
Climate: Tropical climate with hot summers and mild winters
Public Transport System: Well-connected by buses and auto-rickshaws
Medical Facilities: Good healthcare facilities with hospitals offering modern services.

Dharamshala

Dharamshala, nestled in the lap of the Dhauladhar mountains, is a peaceful hill station known for its Tibetan culture, monasteries, and scenic beauty. Retirees can enjoy a tranquil environment, with opportunities for meditation, yoga, and trekking amidst nature’s splendor. The city’s vibrant Tibetan community and bustling markets offer retirees a unique cultural experience, with opportunities to learn about Tibetan art, cuisine, and traditions.

Cost of Living: Moderate
Monthly Rent: Approximately INR 20,000 for a 2BHK apartment
Air Quality: Good
Climate: Pleasant climate with cool summers and cold winters
Public Transport System: Limited public transport, but easily accessible by private vehicles
Medical Facilities: Basic medical facilities are available, with larger hospitals in nearby towns

Jaipur

Jaipur, the Pink City of India, is a vibrant and colorful city known for its majestic forts, palaces, and rich cultural heritage. Retirees can immerse themselves in the city’s royal charm, with opportunities for heritage walks, shopping in bustling markets, and indulging in traditional Rajasthani cuisine. The city’s well-preserved historical landmarks, such as the Amber Fort and City Palace, offer retirees opportunities to explore and appreciate the city’s rich history and architectural heritage.

Cost of Living: Moderate
Monthly Rent: Approximately INR 20,000 for a 2BHK apartment
Air Quality: Moderate
Climate: Hot summers and mild winters
Public Transport System: Well-connected by buses, auto-rickshaws, and cycle rickshaws
Medical Facilities: Good healthcare facilities with hospitals offering quality medical services

Mysore

Mysore, the cultural capital of Karnataka, is known for its grand palaces, vibrant festivals, and rich cultural heritage. Retirees can enjoy a peaceful and relaxed lifestyle amidst the city’s serene surroundings, with opportunities for yoga, meditation, and cultural performances. The city’s well-maintained parks and gardens, such as the Brindavan Gardens and Karanji Lake, offer retirees tranquil spots to unwind and connect with nature.

Cost of Living: Moderate
Monthly Rent: Approximately INR 18,000 for a 2BHK apartment
Air Quality: Good
Climate: Pleasant climate with moderate temperatures year-round
Public Transport System: Well-connected by buses and auto-rickshaws
Medical Facilities: Good healthcare facilities with hospitals offering modern services.

Rishikesh

Rishikesh, nestled on the banks of the Ganges River, is a spiritual hub known for its yoga ashrams, meditation centres, and adventure sports. Retirees can enjoy a serene and spiritual lifestyle amidst the city’s tranquil surroundings, with opportunities for yoga, meditation, and exploring the Himalayan foothills. The city’s vibrant spiritual community and serene natural beauty offer retirees a peaceful and enriching environment in which to spend their golden years.

Cost of Living: Moderate
Monthly Rent: Approximately INR 15,000 for a 2BHK apartment
Air Quality: Good
Climate: Pleasant climate with cool summers and mild winters
Public Transport System: Limited public transport, but easily accessible by private vehicles
Medical Facilities: Basic medical facilities are available, with larger hospitals in nearby towns.

In conclusion, India offers a diverse range of cities for retirees, each with unique charm, cultural heritage, and lifestyle amenities. Whether you prefer the tranquillity of a hill station, the vibrancy of a metropolitan city, or the spiritual ambiance of a pilgrimage town, there’s a perfect city for every retiree to call home.

Some key factors to consider while evaluating retirement destinations:

Cost of Living: Choosing your place and spending habits define your expenses. The lower the cost of living, the more you save on your retirement savings. Expenses in this category include groceries, housing, healthcare, entertainment, and transportation. Based on your monthly expenses, this needs to be factored in.
Healthcare Facilities: Easy access to healthcare facilities should be one of your top factors. Having healthcare facilities nearby is essential. Retirement can also bring unforeseen health changes, and there should be no compromise on healthcare systems and doctors.
Air Quality and Climate: Would you choose to live in a bustling and fast-paced metropolis or a quiet, cold place? Consider a climate that suits your preferences and helps maintain peace of mind.
Infrastructure: Most of the cities in India are now growing as smart cities. But keep in mind the basic amenities like water, electricity, modes of transportation, and much more. Access to these basic requirements gives you less stress and a more leisurely lifestyle. Always remember that this can also burn a hole in your pocket. Public transportation and connectivity are also needed.
Safety: There has been an increase in crime rates, as cited in reports. Consider the average crime rate and opt for a place with effective police. This experience helps ensure a stress-free and secure retirement.
Social Life and Recreational Activities: After retirement, everyone has a way of keeping themselves occupied. Some would be interested in cultural beliefs, while others might enjoy an active community. This decision helps you decide your lifestyle.

If you plan your retirement in India, you can look forward to relaxing, traveling, pursuing hobbies, experiencing new adventures, and much more. But to strike a healthy balance between affordability and quality of life, it is important to weigh factors related to finances and your requirements.

FAQ

What factors should someone consider when choosing the best place to live after retirement in India based on finances?
When considering places to live after retirement in India, you should factor in the cost of living, healthcare facilities, proximity to amenities, safety, climate, and access to social activities.
Are there any states in India that provide specific benefits for retirees?
Yes, states like Kerala and Goa are known for their retiree-friendly environments. Kerala offers quality healthcare services, a pleasant climate, and a relaxed lifestyle. Goa is known for its beautiful beaches and vibrant expat community.
How do I assess the cost of living in different cities for retirement?
Research the average housing, groceries, transportation, healthcare, and entertainment costs in your chosen cities. Online cost-of-living calculators can also help you make informed comparisons.

June 28, 2023

Retirement

Retirement

4 Best Ways To Use Your Retirement Accounts For Long-Term Investing

Introduction You deserve to enjoy your retirement when you work hard all your life. But how can you ensure you […]

Introduction

You deserve to enjoy your retirement when you work hard all your life. But how can you ensure you have enough money to live comfortably and pursue your passions? The answer lies in the use of retirement accounts for long-term investing.

Long-term investing is putting your money into assets that can grow in value over time and provide you with income and security in the future. Long-term investing can help you achieve your retirement goals, whether you want to travel the world, start a new hobby, or leave a legacy for your loved ones.

In this article, you will learn how to make use of retirement accounts for long-term investing and how to apply it to your retirement planning. You will also discover some of the best long-term investment options for your retirement account and how to avoid common risks and challenges. By the end of this article, you will have a solid foundation of knowledge and skills to start your long-term investment journey for retirement.

Why is Retirement Planning so important?

Retirement planning entails more than just putting money aside for the future. It is also about imagining what your life will be like after you stop working. Retirement planning is essential because it allows you to align your actions with your goals. If you don’t choose suitable investment vehicles to withstand the impact of rising inflation, you’ll be left with nothing after inflation devours the majority of your corpus.

Knowing how to use retirement accounts for long-term investing empowers you set realistic and achievable goals that will make you happy and fulfilled. What makes it indispensable is that it helps you secure your future and live your dreams.

But the fact remains that only a small percentage of Indians know how to use retirement accounts for long-term investing. According to a survey conducted by PGIM India Mutual Fund and Nielsen, more than 51% of Indians polled had made no retirement plans at all.

Another Statista survey found that only 28% of Indian workers have a written retirement savings strategy. According to these statistics, while Indians are willing to fund their retirement accounts with extra money, they are less likely to do so by sacrificing current expenses. This may cause financial stress and anxiety later in life.

Learn the Use of Retirement Accounts for Long-Term Investing for your best retirement planning.

Retirement accounts are specialized investment accounts that allow you to save money for retirement. You can save taxes, preserve capital, and increase your returns over time if you know the use of retirement accounts for long-term investing.

Considering the use of retirement accounts for long-term investing discourages you from withdrawing your money too soon, either by imposing penalties for early withdrawals, restrictions, or a lock-in period. As a result, you will be more disciplined and focused on your long-term goals.

4 Best Long-Term Investment Options for Your Retirement Account

Now that we’ve established why retirement planning is so important, let’s dig deeper into the four long-term investment options to consider-

Equity-Linked Saving Scheme (ELSS)

ELSS is one of the trending use of retirement accounts for long-term investing. This is a type of mutual fund in which at least 80% of the assets are invested in equity and equity-related instruments. ELSS funds can provide higher returns than other fixed-income investments, but they also carry an additional degree of risk and volatility.

Key Information: ELSS
Interest Rate/Returns	Returns are not fixed but depend on market conditions.
Tenure	Min. 3 years
Min. and Max. investment	Min: Rs.500/- Max: No upper cap
Risk	High risk (as returns are market linked)
Premature Withdrawal	Allowed only after 3 years (much lower than other tax-saving long-term schemes)
Tax Benefits	-Upto Rs. 1.5 lacs of the investment under Sec 80C -Dividends and Capital Gains are tax-exempted.

Public Provident Fund (PPF)

One of the most tax-efficient options for the use of retirement accounts for long-term investing is PPF. This is a government-backed fixed-income scheme that provides tax-free returns.

Key Information: PPF
Interest Rate	7.1% p.a (for Q1 FY 23-24)
Tenure	15 years (can be extended for an additional 5 years with or without additional contributions)
Min. and Max. investment	Min: Rs. 500/- p.a Max: Rs. 1.50 Lacs
Risk	Guaranteed, risk-free returns
Tax Benefits	Under Sec 80 C: Upto Rs. 1.50 lacs p.a Under Exempt-Exempt-Exempt category: Maturity Tax-free
Partial Withdrawal	From the 7th year onwards
Interest Rate	7.1% p.a (for Q1 FY 23-24)

National Pension Scheme (NPS)

NPS is another catching on use of retirement accounts for long-term investing. This voluntary pension plan allows you to invest in a blend of equity and debt funds. Although NPS can help you widen your portfolio and generate market-linked returns, it has a more extended lock-in period and lower liquidity than other options.

Key Information: NPS	Tier-I		Tier-I
Interest Rate/Returns	Asset	Returns (5 yr)	Asset	Returns (5 Yr)
	Equity	10.45%- 10.86%	Equity	10.35%- 10.58%
	Corporate Bonds	10.05%- 10.64%	Corporate Bonds	9.86% - 10.60%
	Govt. Bonds	9.57%- 10.05%	Govt. Bonds	9.59% - 10.07%
Tenure	NPS does not have a fixed tenure, but you can continue or defer your NPS account up to the age of 75 years.
Min. and Max. investment	Min: Rs. 500- Rs. 1000 p.a Max: No upper limit		Min. and Max. investment
Premature Withdrawal	Withdrawals are restricted (only partial withdrawals are allowed before 60 yrs age)		Premature Withdrawal
Risk	High Risk (returns are market linked)
Tax Benefits	Under section 80 C- Upto 1.5 Lacs Under Sec 80CCD (1B)- Additional tax benefit up to Rs. 50,000/-		Tax Benefits

National Savings Certificate (NSC)

NSC is the next most frequently mentioned use of retirement accounts for long-term investing. This is a government-backed fixed-income scheme that offers guaranteed returns.

Key Information: NSC
Interest Rate	7.7% p.a (compounded annually)
Tenure	5 years
Risk	No risk, guaranteed returns
Min. and Max. investment	Min: Rs. 1000/- (thereafter in multiples of Rs.100/-) Max: No upper limit
PPrematureWithdrawal	Not Permitted
Tax Benefits	Upto Rs. 1.5 lacs under Sec 80 C

Avoiding Common Risks and Challenges of Long-Term Investing for Retirement

Long-term investing for retirement can be rewarding but also risky. You need to balance your potential returns with the possibility of losing money due to market volatility, inflation, taxes, and other factors. To avoid common risks and challenges of long-term investing for retirement, you should follow some basic principles:

Portfolio Diversification

Diversify your portfolio across different asset classes, such as stocks, bonds, cash, and real estate. This way, you can reduce the impact of a single market downturn on your overall wealth.

Focus on Asset Conservation

Invest in low-risk and less volatile investments that provide steady returns, such as fixed-interest Bonds, ETFs, Index Funds, liquid mutual funds, Post-Office Monthly Interest Schemes (POMIS), and annuities. These can help you preserve your capital and generate recurring income for your living expenses.

Invest in Tax-Advantaged Schemes

Take advantage of tax-saving retirement accounts, such as Public Provident Fund, tax-saving mutual funds, and National Savings Certificate (NSC). These can help you save more for retirement and defer taxes on your earnings until you withdraw them.

Portfolio Re-balancing

Keep an eye on your portfolio and adjust it whenever necessary. Adjust your asset allocation according to your age and risk tolerance. As you get closer to retirement, you may want to shift more of your portfolio to less risky investments that can protect your principal and provide a reliable income stream.

Control Your Emotional Impulses

Long-term investing requires patience, discipline, and a clear vision of your financial goals. But sometimes, emotions can cloud your judgment and make you do things that hurt your returns, such as panic selling, impulse buying, following fads, or overreacting to some market news.

Key Takeaways

Long-term investing is an innovative and effective way to use your retirement account to grow wealth and achieve financial goals. By investing for the long term, you can benefit from compound interest, diversification, tax advantages, and more. You can also choose from various investment options that suit your risk tolerance, time horizon, and preferences.

However, long-term investing also comes with its own sweet and sour challenges and risks that you must be aware of and avoid. You must have a clear plan, a realistic budget, and a disciplined mindset.

You also need to monitor and adjust your strategy as your situation changes. By following the tips and advice on how to use retirement accounts for long-term investing, you can turn your retirement account into a powerful tool o reach your financial dreams. Don’t wait any longer. Start your long-term investment journey for retirement today.

FAQs

How much do I need to save for my retirement planning?

This question has no one-size-fits-all answer because it depends on various factors, such as your current income, expenses, lifestyle, life expectancy, inflation, and expected returns. However, some general guidelines to make the best use of Retirement Accounts for Long-Term Investing-

● Save at least 10% to 15% of your annual income for retirement
● Use the 4% rule to calculate how much money you can withdraw from your savings each year without running out. According to the 4% rule, you can withdraw 4% of your invested value in the first year of retirement and then adjust the amount for inflation in the next years.

When should I start thinking about retirement planning?

Retirement planning has no age limit. Start anytime you want. However, the earlier you begin, the better. Starting early allows you to benefit from the power of compounding, which means earning interest on your interest. It can also encourage you to save more and invest more aggressively because you will have more time to recover from market slumps.

March 22, 2023

Retirement

Retirement

Best 4 Ways To Inflation-Proof Investing For Retirement

Lingering cross-border tensions, high oil and commodity prices, sustained supply chain disruptions, heightened market volatility, and fears of a COVID-19-like […]

Lingering cross-border tensions, high oil and commodity prices, sustained supply chain disruptions, heightened market volatility, and fears of a COVID-19-like pandemic pose an upside risk to inflation and a downside risk to your retirement nest egg. However, for people with a fixed income post-retirement, making inflation-proof investing for retirement looks inevitable.

If you, like millions of others, are working hard to build a retirement portfolio to ensure that money is available when you need it, this article is for you. Unfortunately, most of us make the same mistake regarding retirement planning: we underestimate inflation. We ignore that sober-looking monster slowly devouring your savings before you can use them.

This article will walk you through four ways of inflation-proof investing for retirement. Before we jump on to the ideas to offset the effect of inflation, let us discuss in brief what are the essentials of effective retirement planning.

Plan For Retirement Effectively

Every job has an end date, whether by law, personal choice, or medical necessity, and your regular pay cheques will stop one day. However, just because you’ve retired doesn’t mean you must abandon the lifestyle or habits you’ve developed. With proper retirement planning, you can create an action plan that includes the right mix of investments to ensure a lifetime of happiness.

Before you start crunching numbers on your retirement goals, start planning for inflation-proof investing for retirement by determining your financial goals and the time horizons you have to achieve them, assessing risk tolerance, etc. Saving is not enough in this case; you must also choose the suitable investment vehicles and take advantage of the power of compounding to boost your money to be future-ready.

You can make inflation-proof investing for retirement by following the well-established 4% rule. This rule allows you to withdraw 4% of your accumulated retirement corpus in the first year. Further annual withdrawals could be inflation-adjusted to provide a consistent and secure income stream. Let’s look at an example to see how this works.

Say you have saved Rs. 1 Crore as your retirement corpus. Then in the first year, you may withdraw Rs. 4 lacs. Let us assume the inflation rate is 6%, and subsequent withdrawals from the second year onwards would be Rs. 4,24,000/- (Rs. 400000 * 1.06). If the inflation has decreased by 6%, then you can withdraw less than the previous year i.e. Rs. 3,84,000/-(Rs. 400000*0.94).

So, the tried-and-true strategy for building inflation-proof investing for retirement is to diversify your portfolio across asset classes, from equity to debt. Continue to rebalance your portfolio in response to rising age and inflation trends to make it more resilient to market volatility. As you get older and your risk tolerance decreases, shift your investment focus from capital appreciation to capital conservation, i.e. from equity to safe havens like bonds.

4 Ways of Inflation-proof Investing For Retirement

According to the Ministry of Statistics and Programme Implementation, the average inflation rate has remained between 5 and 6% over the last nine years; it peaked at 12.2% in 2013 and fell to 1.5% in 2017. So, when it comes to retirement savings, you suddenly find that all that you save over the years through financial discipline starts to get eroded with inflation. How do you invest in things that will appreciate at a rate that matches inflation?

Let us explore some simple yet effective ways to inflation-proof investing for retirement-

1. Start Investing in Equity Market

When inflation unexpectedly rises, your equity portfolio may frequently move up or down in the short term. However, investments in fundamentally sound companies with strong cash flows have outperformed inflation over long periods. If you consider the long-term equity market returns and try to juxtapose this with inflation considering a long-term horizon, you will find your wealth compound.

For inflation-proof investing for retirement, you can invest in mutual funds/stocks in which the fund allocation is in sectors such as Gold, Commodities, Oil and gas, healthcare, consumer staples, etc, that are largely resistant to inflation or are beneficiaries of inflation.

2. Invest in Indexed Inflation Bonds

Inflation Indexed Bonds (IIB) were introduced by the Reserve Bank of India in 2013-14 to hedge the Indian retail investors against market volatility causing fluctuations in inflation. IIBs were based on wholesale Price Index (WPI) movements. Consider the table below to understand how these inflation-indexed bonds designed to keep pace with inflation outperform regular coupon bonds during inflationary periods-

3. Avoid hoarding too much cash

Having an emergency fund of three to six months’ expenses is life-saving. Still, it can injure your retirement plans if inflationary pressures are high, as inflation and savings do not work well together. Your cash holding starts losing its purchasing power and intrinsic value as inflation rises.

So, in inflation-proof investing for retirement, avoid holding excess cash. Instead, consider it an investment opportunity to start putting the cash to use. Take advantage of the market touching correction territories and accumulate harder assets and fundamentally strong companies that tend to outperform inflationary periods.

4. Rethink Your Expenses

Finally, one of the most common pieces of retirement planning advice is to optimize your savings and cut unnecessary expenses. This may be the easiest to follow, but it frequently requires the most coaching. Dig through your expenses to find the most valuable and fulfilling ones while cutting the rest.

For inflation-proof investing for retirement, invest time in budgeting and curtail avoidable expenses that do not align with your core values. Begin living a minimalist lifestyle that you can comfortably maintain even after retirement. Reducing your expenses is the best way to combat inflation. A few lifestyle changes make a huge difference, like timely paying off your debts and other liabilities to be liability-free post-retirement, travelling in the off-season, avoiding overpriced luxury products, and doing detailed market surveys before buying any product.

Key Takeaways

Since the average longevity increased by 0.33% from 2022 to 70.42 in 2023, inflation-proof investing for retirement planning has become pivotal. With inflation exceeding RBI expectations and reaching new highs, fears are growing that inflation will devastate your retirement corpus, which has been built up over years of financial hardship and discipline.

So, to realize your dreams of spending your retirement years luxuriously, you must first defeat rising inflation. Your roadmap to inflation-proof investing for retirement relies on how meaningfully you embrace the four ways we have suggested above to protect your retirement stash from inflation.

FAQs

Does inflation beat social security schemes like PPF, Senior Citizen Savings Scheme (SCSS), or Bank’s Fixed Deposit (FD)?

In the long run, social security schemes like PPF or other long-term schemes like SCSS or FD may give you good guaranteed returns, but the deposit yields no or negative real returns. Such schemes are not inflation protected despite giving assured returns.

They fail to give consistent returns when inflation rises. Your corpus may grow, but the purchasing power of the money will be lower. However, if the inflation is below the guaranteed interest, these products may yield a positive real return. The National Pension Scheme (NPS), a long-term social security scheme, can be a good option if started early to build a hefty retirement corpus.

Which sectors are more resilient to rising Consumer Price Index (CPI) inflation, which significantly impacts commodity prices in India?

Some of the sectors that are historically more stubborn to CPI inflation and can potentially improve your yields during inflation include-
●  Real Estate
●  Energy
●  Financial Companies
●  Commodities
●  Health Care
●  Consumer Staples

Which companies should I invest in to beat inflation?

It is empirically proven through past phases of inflation that investing in companies with low capital needs to help you earn higher returns on capital invested. During inflation, companies with low capital needs can earn far better than those requiring more money to maintain their position.

Can investing in gold be part of inflation-proof investing for retirement?

Yes, gold is traditionally considered an inflation hedge because, unlike fiat currencies, it retains its purchasing power for longer periods of rising inflation. Alternatively, long-term investments in productive assets such as stocks, real Estate, or agricultural land, on the other hand, can generate dividends, rental income, and food for their owners.

March 15, 2023

Retirement

Retirement

Senior Citizen Savings Scheme (SCSS) V/S Senior Citizens Special Fds – Which Is More Beneficial

Senior citizens have several investment options, some government-backed and others private. Senior Citizen Saving Scheme (SCSS) and Senior Citizens Special […]

Senior citizens have several investment options, some government-backed and others private. Senior Citizen Saving Scheme (SCSS) and Senior Citizens Special FDs are two of the most popular choices. Senior citizens want two things from their investments first, decent guaranteed returns, and second, regular income to maintain their lifestyle.

This article will look at the Senior Citizen Savings Scheme (SCSS) and Senior Citizens Special FDs to assess which is best for your investment needs.

Senior Citizen Savings Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) is a government-supported investment scheme crafted for senior citizens who can invest a lump sum to earn a regular income to cover their expenses.

Features

Description	Features
Age (Min, Max)	Min age: In case of- General Public: 60 years Superannuation or VRS: 55-60 years Defence Pensioners(excl civilian defence personnel): 50 – 60 years Max age: No upper age limit
Tenure of deposit	5 years, with the option to extend for another 3 years. A maximum of one extension is permitted.
Amount of deposit	Min: Rs. 1000 Max: 30 Lacs (revised limit as per Budget 2023)
Interest Rate	100 basis points above 5 years over government bond yield (From 01/01/23 to 31/03/23 applicable interest – 8%)
Loan Facility	Not available
TDS	As per the applicable tax slab
Can be Availed through	Notified banks and Any Post Office
Premature withdrawal/ Closure	Premature withdrawal/ Closure

The Perks of the Senior Citizen Savings Scheme (SCSS)

Safe and secure investment vehicle
Guaranteed returns
Higher rate of interest
Good source of regular income
Tax exemption u/s 80C available

Drawbacks of the Senior Citizen Savings Scheme (SCSS)

Investor loses the benefit of compounding due to quarterly interest payout. So, this scheme may not benefit those who immediately need regular income for their living expenses.
Interest paid is taxable therefore reduces the net interest earned post taxes
A loan facility is not available under Senior Citizen Savings Scheme (SCSS)
If you don’t close SCSS post maturity, you get an interest of 4%, applicable in the Post Office savings bank account.

Senior Citizens Special FDs

1. SBI We Care FD

The largest nationalized bank launched a senior citizens special FD called “SBI We Care FD”, designed specifically for senior citizens. This product falls under the Retail TD segment and is available as a new deposit or a renewal of maturing deposits with the bank.

Features of Senior Citizens Special FDs Scheme: SBI We Care

Description	Features
Eligibility	Minimum Age: 60 years
Tenure of deposit	Min: 5 years Max: 10 years
Interest Rate	100 bps over rate offered to the public
Loan Facility	Available (Interest of 1% above the relative FD rate)
TDS	As per the applicable tax slab
Can be Availed through	Branch/Internet Banking/YONO
Valid till	31.03.2023
Interest Rate	7.50% (w.e.f 15.02.23)

2. ICICI Bank Golden Years FD

ICICI Bank introduced a special senior citizen FD scheme named “ICICI Bank Golden Years FD” on 20th May 2020 as a tool of income protection by providing additional interest of 30 basis points.

Description	Features
Eligibility	Minimum Age: 60 years Max Deposit: Rs. 2 crore
Tenure of deposit	Min: 5 years 1 day Max: 10 years
Interest Rate	60 bps over rate offered to the public
Loan Facility	Available. Bank, at its discretion, may offer a loan/OD facility at an interest rate of 2% above the contracted rate with a reduction of up to 1% as per the terms and conditions of the Bank.
TDS	As per the applicable tax slab
Can be Availed through	Branch/Internet Banking
Valid till	31.03.2023
Interest Rate	For single deposit Less than Rs. 20mn – 7.50% (w.e.f 24.02.2023) Above Rs. 20mn but less than Rs. 50mn – 6.75% (w.e.f 06.03.2023)
Premature withdrawal/ Closure	On or after 5 years 1 day – 1.10% Before 5 years, 1 day – 1%

3. HDFC Senior Citizens Care FD

The HDFC Senior Citizens Care FD is a senior citizens special FDs scheme launched on 20th April 2020. The private sector giant offers premium interest rates to its senior citizen customers (both on new deposits and renewals), helping them generate regular income to meet the rising costs.

Description	Features
Eligibility	Minimum Age: 60 years Maximum age: 80 years Max Deposit: Rs. 5 crores Minimum amount: Rs. 10,000
Tenure of deposit	Min: 1 year: 10 years
Interest Rate	75 bps over rate offered to the public The Tenor Interest Rate More than 1 year – 2 years – 7.50 % More than 2 years but less than 3 years -7.25% More than 3 years but less than 5 years – 7% 5 years – 7% Between 5 years – 7 years – 7%
Loan Facility	Available
TDS	As per the applicable tax slab
Can be Availed through	Branch/Internet Banking/Phone Banking
Valid till	31.03.2023
Interest Rate	6.50%
Premature withdrawal/ closure	Allowed. A penalty of 1.0% will be levied.

4. IDBI Naman Senior Citizen Deposit

IDBI launched this special senior citizens FDs scheme on April 20, 2022, to alleviate the growing inflation pressure on senior citizens by providing regular income sources.

Description	Features
Eligibility	Minimum Age: 60 years Max Deposit: Rs. 2 crore
Tenure of deposit	Min: 5 years 1 day Max: 10 years
Interest Rate	60 bps over rate offered to published ic
Loan Facility	Available (Interest of 1% above the relative FD rate)
TDS	As per the applicable tax slab
Can be Availed through	Branch/Internet Banking
Valid till	07.04.2023
Interest Rate	For single deposit Less than Rs. 20mn – 7.50% (w.e.f 24.02.2023) Above Rs. 20mn but less than Rs. 50mn – 6.75% (w.e.f 06.03.2023)
Premature withdrawal/ Closure	For single deposit Less thPrematuremn – 7.50% (w.e.f 24.02.2023) Above Rs. 20mn but less than Rs. 50mn – 6.75% (w.e.f 06.03.2023)

Drawbacks and Limitations of Senior Citizens Special FDs

There is no tax exemption available.
Premature withdrawals incur a penalty.
Reinvestment risk exists. As the senior citizens special FDs renew automatically, you may earn lower interest rates upon reinvestment.
Only domestic deposits are eligible.
Inflation risk as the interest rate is lower than the inflation rate.
Lack of flexibility because each scheme has specific requirements you must meet.

Comparison: Senior Citizen Saving Scheme vs Senior Citizens Special FDs

	Senior Citizen Savings Scheme (SCSS)	Senior Citizens Special FDs
Interest rates	25-50 bps higher than FDs	25-50 bps lower than SCSS
Deposit Amount (Min, Max)	Min Investment: Rs. 1000 Max Investment: Rs.30 Lacs	Min Investment: Rs. 1000 Max Investment: Rs. Up to 2 crores
Tax Benefits	Tax exemption up to Rs. 1.5 lacs allowed under Sec 80 C.	No tax benefit allowed
Tenure	5 years extendable for another 3 years	7 days to 10 years
Lock-in-period	5 years	No lock-in period
Interest Payout	Quarterly (on 1st working day of every financial quarter)	The principal plus accrued interest is paid on maturity.
Loan Facility	Not Permitted	Loan facility allowed
Liquidity	Less liquidity	High Liquidity

Key Takeaways

As you approach retirement age, you are done with your financial planning and responsibilities. Aside from capital appreciation, you require an additional source of regular income to supplement your living expenses.

You should be clearer now if you were undecided between the Senior Citizen Savings Scheme (SCSS) and the Senior Citizens Special FDs scheme. We hope that the information in this comprehensive guide has made building a healthy portfolio that generates consistent income much more straightforward.

FAQs

Can Senior citizens open both a Senior Citizen Saving Scheme (SCSS) account individually?

Yes, but the total investment per investor should not cross the upper limit of 30 lacs as proposed under Budget 2023.

What happens in the event of the death of the SCSS account holder?

If a Senior Citizen Savings Scheme account holder dies, the account is closed at the request of the nominee/legal heir, and interest is paid only until the account holder’s death.

How can I save TDS on Senior Citizens special FDs?

If your taxable income, including interest income, is less than the taxable limit, you can avoid TDS deduction by submitting form 15 H to your respective bank. If your total interest income exceeds Rs. 50,000, you are taxed at a lower rate (i.e. 10%). You can fill out Form 12 BBA and save the excess TDS deduction.

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Retirement

Retirement Age In India

New Retirement Age In India

High Court Judge Retirement Age in India

Retirement age in India for Central Government employees

Employees’ retirement age in India for the private sector

Army Retirement Age in India

Police Retirement Age in India

Will the retirement age be increased to 62?

Conclusion

What is the retirement age in India?

What is the right age for retirement?

Can I retire at 62 if I am 58?

Can India Bridge the Retirement Investment Gap?

What does retiring early mean?

1. Figure Out Your Retirement Number

2. Start Saving Early, Watch it Grow

3. Debt Free = Stress Free

4. Add To Your Skills and Look for a Side Income

5. Create a Realistic Budget and Stick to it

6. Seek Professional Guidance

7. Don’t Forget Healthcare

List of the Best Places to Live After Retirement in India

Goa

Pune

Coimbatore

Dehradun

Chandigarh

Pondicherry

Kasauli

Delhi

Bengaluru

Ahmedabad

Bhubaneshwar

Dharamshala

Jaipur

Mysore

Rishikesh

Some key factors to consider while evaluating retirement destinations:

FAQ

What factors should someone consider when choosing the best place to live after retirement in India based on finances?

Are there any states in India that provide specific benefits for retirees?

How do I assess the cost of living in different cities for retirement?

Introduction

Why is Retirement Planning so important?

4 Best Long-Term Investment Options for Your Retirement Account

Equity-Linked Saving Scheme (ELSS)

Public Provident Fund (PPF)

National Pension Scheme (NPS)

National Savings Certificate (NSC)

Avoiding Common Risks and Challenges of Long-Term Investing for Retirement

Portfolio Diversification

Focus on Asset Conservation

Invest in Tax-Advantaged Schemes

Portfolio Re-balancing

Control Your Emotional Impulses

Key Takeaways

FAQs

How much do I need to save for my retirement planning?

When should I start thinking about retirement planning?

Plan For Retirement Effectively

4 Ways of Inflation-proof Investing For Retirement

1. Start Investing in Equity Market

2. Invest in Indexed Inflation Bonds

3. Avoid hoarding too much cash

4. Rethink Your Expenses

Key Takeaways

FAQs

Does inflation beat social security schemes like PPF, Senior Citizen Savings Scheme (SCSS), or Bank’s Fixed Deposit (FD)?

Which sectors are more resilient to rising Consumer Price Index (CPI) inflation, which significantly impacts commodity prices in India?

Which companies should I invest in to beat inflation?

Can investing in gold be part of inflation-proof investing for retirement?

Senior Citizen Savings Scheme (SCSS)

Senior Citizens Special FDs

1. SBI We Care FD

2. ICICI Bank Golden Years FD

3. HDFC Senior Citizens Care FD

4. IDBI Naman Senior Citizen Deposit

Drawbacks and Limitations of Senior Citizens Special FDs