1. Public Provident Fund (on maturity) - Deposit it in your bank's flexi-deposit account and withdraw your monthly requirement needs only from them till they exhaust.
2. Senior Citizens Savings Scheme - Retain and use it as your emergency/ contingency fund.
3. Pension - Retain it for additional income.
4. Fixed Deposits - Start 3 weekly mutual fund SIPs in:-
(i) Multicap fund - for stable growth.
(ii) ELSS fund - for largecap tax savings.
(iii) Midcap fund - for higher returns.
(iv) Start withdrawing your monthly requirement from (i), (ii) and (iii) only after 1+, 3+ and 5+ years resp.
5. Thumb rule for an ideal inflation-beating perennial retirement investment:-
a) Corpus should be 20-25 times of your annual retirement need.
b) Annual withdrawal should be 4-5% of corpus.
6. Conclusion:-
a) Converting low-interest FDs into higher-returns mutual funds would help to enrich your retirement corpus in the long-term.
b) However, your annual expenses would still need to be reviewed periodically to sustain it for 25-30 years of retired life.
c) Alternatively, your kids could gift you, to bridge any expense gap or to increase your retirement corpus.
d) An additional income stream like rental income could also be handy.
2. Senior Citizens Savings Scheme - Retain and use it as your emergency/ contingency fund.
3. Pension - Retain it for additional income.
4. Fixed Deposits - Start 3 weekly mutual fund SIPs in:-
(i) Multicap fund - for stable growth.
(ii) ELSS fund - for largecap tax savings.
(iii) Midcap fund - for higher returns.
(iv) Start withdrawing your monthly requirement from (i), (ii) and (iii) only after 1+, 3+ and 5+ years resp.
5. Thumb rule for an ideal inflation-beating perennial retirement investment:-
a) Corpus should be 20-25 times of your annual retirement need.
b) Annual withdrawal should be 4-5% of corpus.
6. Conclusion:-
a) Converting low-interest FDs into higher-returns mutual funds would help to enrich your retirement corpus in the long-term.
b) However, your annual expenses would still need to be reviewed periodically to sustain it for 25-30 years of retired life.
c) Alternatively, your kids could gift you, to bridge any expense gap or to increase your retirement corpus.
d) An additional income stream like rental income could also be handy.