Financial Security For Seniors, One-Time Money & Monthly Income Solutions

As we grow older, money becomes very important. If you want to stay financially strong in old age and not ask anyone for help, you need to plan your finances now.

Here are some schemes that can give you both a lump sum amount and monthly income during old age.

SIP+SWP Strategy

SIP (Systematic Investment Plan) and SWP (Systematic Withdrawal Plan) can help you. In SIP, you invest a fixed amount every month in mutual funds. Over time, this grows into a large sum of money. Later, after retirement, you can use SWP to get regular monthly income from the money you invested in mutual funds.

In SIP, you invest for 20-30 years while working. After retirement, you can choose SWP, which gives you income regularly. The return rate is usually around 8 per cent. You can choose how much money you want every month and how long you want to take it, like for 10 or 20 years. But the income will stop once your money runs out.

NPS (National Pension System)

NPS is a government scheme made for retirement. Anyone can invest in it and get a lump sum amount after retirement. NPS is a market-based plan, so returns are not fixed. However, over time, it can give good returns. After 60 years, you can take 60 per cent of your invested amount as a lump sum. The remaining 40 per cent is used for annuity, which gives you a pension every month.

EPFO (Employee Provident Fund Organization)

If you work in a private company and contribute to EPF (Employee Provident Fund), you can also get a good retirement fund and pension. The money in EPF is divided into two parts: one for savings and the other for pension. If you contribute to EPF for at least 10 years, you can get a pension after retirement. Your pension amount depends on how much you have contributed to the pension fund. To increase your pension, you can also contribute more to EPF using VPF (Voluntary Provident Fund).

By planning ahead with these schemes, you can have financial security and a peaceful retirement.