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It is natural that one must think of his/her retirement and make plans accordingly.   Of course, it is frightening if no proper planning is made in advance.  It is obvious that your ability to earn money will reduce gradually and it is necessary that you make prudent and wise choices during your earning days to enjoy a tension free life after retirement.

It is important to learn that Retirement planning is the most important aspects of getting your finances right in order to make the most of your retirement days. It is essential to be well prepared to avoid any shock later.

Hence, it is important to plan well for your retirement early in your life. Mentioned below are some investment products which you can choose for retirement planning.

1. Voluntary Provident Fund

​Voluntary Provident Fund (VPF) can be a good option for all the risk-averse investors who are looking to invest with a long term perspective. Thus, this safe long-term investment instrument guarantees a fixed return. Employees can invest a maximum of 100% of their basic salary plus DA.  The VPF account can easily be transferred if the employee changes the jobs. Salaried employees registered with EPFO database are eligible to invest here and the interest earned on VPF amount is tax-free and even the amount withdrawn at maturity is also tax-exempt.

2. National Pension Scheme

Government-backed National Pension Scheme is one of the best investment option to build a retirement corpus.  Administered by the Pension Fund Regulatory and Development Authority (PFRDA), it offers tax-saving benefits to the subscribers. One can invest Rs. 500 per month to a maximum of Rs.1.5 lakh per year. This pension scheme is available for citizens aged 18 to 65. Subscribers are required to make at least 1 contribution per fiscal.

3. Public Provident Fund

Public Provident Fund is one of the most popular long-term investments which helps the people to save for their retirement. It offers high-interest rates and is loaded with tax benefits, tax-exemption and security to capital. The interest earned as well as the returns are not taxable under the Income Tax. The interest rate is set to change at the beginning of each quarter and is not fixed.  The current interest rate is 7.1% p.a. The minimum tenure is 15 years. The minimum investment allowed is Rs. 500 and the maximum is 1.5 lakh for each financial year.

4. Mutual Funds

If you want to keep your retirement funds inflation-proof, you must invest in right Mutual Funds. It offers great returns as compared to other investment tools like FD or RD. Depending on your risk-taking ability, you can invest in liquid, debt or equity funds. However, one must keep in mind that they are susceptible to risk and volatility.

Hence, make a wise and prudent choice of investment tools during the earning days to secure your retirement life. The above mentioned are some investment products which you can choose for retirement planning.

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