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Making Retirement Savings Generate Steady Income After Paycheque Stops

Making Retirement Savings Generate Steady Income After Paycheque Stops
After the paycheque: Making retirement savings generate steady income in retirement · telegraphindia.com

When you work at a job, you put money aside so you have it after you stop working.

That money is sometimes called a retirement corpus.

Once you stop working, that money has to take care of you for maybe 20 or 30 more years.

The way the money is invested during those years matters a lot.

Some safe savings plans pay you interest, but the interest rate can change.

If the rate goes down, the same amount of savings gives you less money each year.

Putting savings into different plans and different time lengths can help protect your income.

Doctor and hospital bills also grow faster than other costs, so saving a separate fund for them is a good idea.

Checking and updating your plan after retirement helps your money last as long as you need it.

Key facts

SCSS interest rate (Jan-Mar 2020)
8.6%
SCSS interest rate three months later
7.4%
Example SCSS investment
₹15 lakh (then-maximum)
Annual income at 8.6%
about ₹1.29 lakh
Lost income per year after rate cut
roughly ₹18,000
NPS annuity requirement
at least 40% of retirement corpus
Estimated medical inflation in India
around 13%–14% annually
Author
CEO of Bankbazaar.com

Sources

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