RETIREMENT BENEFITS
Post retirement your life is at such a stage wherein you start to incur heavy expenses due to inflation and health issues. To have a stress free life post retirement, it is essential to have enough corpus that can provide you regular income to set off those heavy expenses. ‘V’ allocates your savings and ensure that there are sufficient financial resources to have a desired and independent lifestyle in the retirement years.
Individual Retirement Benefits
- Annuity Schemes
- Mutual Funds (Retirement Solutions)
- Corporate Fixed Deposit
- Alternative Investment Funds
An annuity plan is a financial product that provides you guaranteed regular payments for the rest of your life after making a lump sum investment. The life insurance company invests your money and pays back the returns generated from it
Mutual funds enable you to have equity exposure but help reduce the risk through diversification of the portfolio. Ideally an investment horizon of at least 20 to 30 years should be kept for Retirement planning through Mutual Funds.
The deposit placed by investors with companies for a fixed term carrying a prescribed rate of interest is called Company Fixed Deposit. Deposits thus mobilised are governed by the Companies Act under Section 58A.
Apart from regular investment avenues such as Shares, Mutual Funds, Bonds there is an very exciting opportunity of Alternative Investment of Non –Financial & Financial Assets which is registered with SEBI in the category of AIF.
Types of AIFs
- Equity
- Hedge Funds
- Infrastructure Funds
There are 3 types of categories in AIFs
- Category I - Close Ended
- Category II - Close Ended
- Category III - Open/Close Ended
Coporate Retirement Benefits
- Group Gratuity
- EPF
Usually, the company manages the gratuity funds in the house or takes an insurance plan for a group of employees. The gratuity will be paid by the issuer based upon the terms of the group gratuity.
Employees’ Provident Fund has been set up under The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (“Act”) applicable pan-India. The fund is built by contributions extended by employees and their employers each month. The accrued interest on the EPF is Tax-Free. Employees avail of a lump sum amount on their retirement which is inclusive of the accrued interest