Different Types of Retirement Plans

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Without a sturdy retirement plan, it is impossible to lead a happy and fulfilling post employment life. Besides the employer-induced pension plans sometimes it may become necessary to invest in an additional schemes that adds to what you stand to gain when your job situation ends. It is necessary to remember that one simply cannot work throughout their lives. There comes a time eventually when one has to call it quits. What is there to fall back on during this time?  Ask yourself this question and then choose a retirement plan that offers a complete peace of mind.

Some of the types of plans available include the following.

Retirement Plans by default

When it comes to retirement plans by default the very first option that springs to mind is the provident fund. Here, the organization where you are employed forces you to deduct definite sums of money on a regular basis. This type of forced savings helps you to reap the benefits in your advanced years. The Central Government in India offers a contributory PF for the employees where the government contributes the exact sum you save every month.

Employees working in a single concern for over five years become eligible for gratuity. The gratuity bonus depends upon the last salary you draw as an employee in an organization. Leave encashment is another benefit you can get post retirement from the concern you work for presently.

Government Plans

There are safe government plans, which individuals can choose in order to ensure a financially well-protected post retirement life. One of these is the Monthly Income Scheme (MIS). This comes with a high rate of interest at over eight percent. Then there is the Senior Citizen Savings Scheme (SCSS) with a nine percent annual interest. PPF scheme is another option for those interested in opting for a safe retirement planning.

Other Retirement Plan Options

Opening up a savings bank account is a good way to keep aside money for the post retirement scenario.  You can get interest ranging from 4% to 7%. Fixed deposits in banks can allow your money to grow steadily at 3-10% interest rates and thus offer a viable plan to individuals. Mutual funds are another option, which offer a safe way to help your money grow on a long-term basis.

With so many available options, it is not going to be difficult to find a retirement plan that works wonders in your case. Turn your post job period into the Golden Years of your life with a reliable scheme that not only provides a regular source of income but also helps you to tide over the bad phases that invariably come up, especially during the advanced years. Retire gracefully and confidently with a sturdy plan that WORKS!

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