Until they reach a certain age, most people frequently ignore retirement planning. However, to ensure a secure financial future, it is crucial to plan for retirement well in advance. Non-resident Indians (NRIs) in particular, who leave their home country in search of a better future, should be aware of the finest investment opportunities. Thanks to the measures taken by the government, India is well on its way to becoming a hub for both domestic and foreign investment, In this scenario, NRIs can opt for a number of schemes to plan their retirement in advance. Here are some plans which can be beneficial for NRIs to secure their post-retirement life:
Read More: IRDAI’s proposals may limit setting-up of new insurance companies; here’s how
Annuity Plans
An annuity plan is regarded as the best option for retirement planning among insurance-cumulative-investment plans. This is one of the most well-liked retirement plans because it offers regular payments that can be made monthly, quarterly, or annually depending on the investor’s preference. To guarantee a decent post-retirement life, the plans strategically manage your capital and pay back a steady income.
Deferred and immediate annuities are the two types of annuity plans that investors frequently pick. Deferred plans allow you to build up your corpus and get payouts later in life. The immediate annuity plan enables you to start getting a pension right away. This plan has the advantage of protecting the principal you used to buy the annuity and returning it to your nominee in the tragic situation of the policyholder’s death. The policy can be purchased at the age of 18 and can last up to 80 or even 99 years.
Read More: SBI Annuity Deposit Scheme: Earn fixed monthly income by invest a lump sum, check details here
Capital Guarantee Plan
Capital Guarantee plans are ideal for people who can handle a moderate level of risk. The plan lets the investor benefit from market gains by investing some portion in equity while protecting the principal amount from losses by investing between 50 and 60 per cent in debt funds. Tax-free returns and tax advantages are provided by a combination of insurance and investment products, which aid in building up a solid retirement fund. It is also a fantastic alternative because it allows the choice of monthly, quarterly, or annual payouts.
Guaranteed Return Plan
This plan belongs to the category of traditional investing. These plans perform incredibly well for NRIs since they guarantee a stable return, especially given the unstable economic environment of today. Investors can easily commit for a long term by simply setting in the rate of return at the time of purchase. Some of these new plans offer returns as high as 7.2 percent, which is higher than existing options like FDs or even PPFs. Additionally, the strategy is even more profitable for NRIs who have non-residential external accounts in India because they qualify for a GST refund.
