In order to lead a good life after retirement, people rely on pension, provident fund and gratuity. However, nowadays expenses of people, particularly those living in big cities and towns, have increased. In old age, healthcare expenses also go up. So, after retirement, it is necessary to look for more sources of income to cope up with the increasing expenses and live a tension-free life.
Here are some options which will help you live a comfortable life after retirement.
1. Investing in properties is a good option for generating decent income through rent. Nowadays, interest rates are low and prices of property have also dropped. So, it’s a good time to invest to buy flats. If a person is far from retirement age, then one can pay installments of the property through the rental income. In such a case, by the time the person will retire from his job, he will have paid off the loan.
2. Five year tax-saving FDs is another investment option. These are available at all banks and post offices. They offer tax-benefits under section 80C of the Income Tax Act. Subscribers of these fixed deposits get guaranteed interest income with periodic payout option, if they deposit Rs 1.5 lakh for a period of five years with a post office or a bank.
3. People usually invest in Monthly Income Plans (MIPs) as they offer monthly returns that are more or less stable. The reason behind the stable return is their low equity exposure. The MIPs provide monthly incomes through a mix of debt and equity-based investments. The best thing about them is that subscribers don’t have to select a bunch of stock or debt investment options themselves.
4. Those who have knowledge of accounting can take up part-time jobs at small firms which require people to maintain their balance sheets. In today’s time, the demand for online education has also increased, so post retirement people can teach online and earn a handsome income. They can also set up stationery shops or food joints, if they have money for investment.
5. Pension plans are an option mainly for those whose basic pay in their salaries is small. Pension plans not only offer monthly incomes but also come with benefits to spouse after death. People are usually advised to choose pension plans that offer tax benefits.