Why is retirement planning important? Where should you invest?

Planning for retirement while you are still working is crucial. By making and following a plan to secure your future, you can ensure a comfortable life later on. Here are some schemes to consider for this purpose.
 

Atal Pension Yojana

Launched in 2015, the Atal Pension Yojana (APY) is an effective retirement plan aimed at individuals aged 18 to 40. Participants are required to make regular monthly contributions until they reach 60 years of age. Depending on the investment amount, you can receive a monthly pension ranging from Rs 1,000 to Rs 5,000. This scheme offers a stable income after retirement, helping you maintain financial independence. Note that this scheme is not intended for taxpayers and requires contributions for a minimum of 20 years.

National Pension System (NPS)

The National Pension System (NPS) is another robust option for retirement planning. Individuals aged 18 to 60 can invest in this scheme. If needed, you can withdraw up to 60% of your accumulated amount before retirement in case of an emergency. The remaining 40% is used to purchase an annuity, which provides you with a monthly pension. The amount of your monthly pension is based on the value of your annuity, enhancing the benefits of this plan.

Post Office Monthly Income Scheme

The Post Office Monthly Income Scheme (POMIS) is another good option, offering a 7.4% annual interest rate. You can deposit up to Rs 9 lakh in an individual account and up to Rs 15 lakh in a joint account. With a joint account, you can receive a regular monthly income of up to Rs 9,250. This scheme provides a stable monthly income, functioning similarly to a pension.