The investment landscape is often rife with ubiquity and unpredictability, which fuels uncertainty and enhances risks. Investors who want to save a large corpus for their retirement, look towards minimising risks and uncertainties. There is already a lot of uncertainty revolving around the general retirement planning processes, and most investors dread the fear of outliving their retirement savings. To evade these risks and uncertainties, it is best to allocate a larger part of your investment portfolio towards fixed income instruments.
For risk-averse investors, Public Provident Funds and Fixed Deposits are one of the best investment instruments that ensure that you’re not scrambling for finances, when you step into the golden years of your life.
Read along to find out which of these investment instruments is better suited as per your retirement goals.
Provident Fund for retirement
Provident Fund is one of the safest and most tax-efficient fund. As a form of social safety net, employees contribute a portion of their salaries into this fund, which accrues a large sum of money over time.
Once you retire, you can get a large amount of money from your Provident Fund Account and other avenues such as Gratuity, Superannuation, Voluntary Retirement Fund and more. However, as per a recent study, 64% respondents worry about ever-increasing healthcare costs, 58% fret over not having enough financial backing to address these expenses, and 51% are scared outliving their savings mid-retirement. Also, increasing inflation rates and regular expenses may dent your corpus, which makes it imperative to not let your PF savings stagnate over time.
You can grow the value of your investments by investing in low-risk investment avenues like fixed deposits. Read along to know how investing in fixed deposits can enable you to grow your savings.
Fixed deposits for retirement
With recent restructuring of repo rates and reverse repo rates by the RBI, last year has resulted in an increase in FD interest rates. You can benefit from flexible tenors, with an option to choose your interest payouts. With an option for periodic payouts, FDs enable you to take care of your regular expenses without liquidating your savings. You can also choose the option to gain interest at the end of your tenor, so you can grow your retirement corpus easily.
To enjoy better benefits, consider investing in Bajaj Finance Fixed Deposits. As a senior citizen, when you hold a cumulative FD for 36 months you can enjoy up to 9.10% interest returns on your investment. You can also deduce the exact investment returns before you start investing, by using the FD calculator .
Make sure you visualise your retirement early on, so you can prioritise comfort, stability, and security by investing in such low-risk investment avenues. Support your PF investment with FDs and once you get closer to retirement, opt for periodic interest payouts to fund your regular expenses. This way you can make the most of what both these investments bring to the table.