Retirement Investment Plans for a Happy Retirement Life

Dear Friends,
With a series of wise investment strategies and exploring various plans, let’s see the various ways to get standard income sources at our retirement period.
Even those who earn a steady monthly salary badly needs a second income to meet their long-term financial goals. That is why many of us choose to invest. In this case, let's not talk about retired people. Apart from retirement savings, you can only manage your living expenses with rising inflation if you choose and plan with the better investment opportunities.
The retirees need a steady stream of income from their investments to comfortably earn their second income. Many people have put together a lump sum fund for retirement. At least Investment instruments like the National Pension Scheme (NPS-a popular one in India), Employee Provident Fund (EPF), Public Whether it's a savings fund, mutual fund investments, stock market investments, Crypto investments, real estates or a combination of these in various compositions, whatever the investment, you can get a fixed amount of money every month during retirement.
Let’s explore the various ways of popular investment schemes for our peaceful retirement period with the Indian context. This would vary from country to country.
Bank Fixed Deposit:
Most retirees would keep their retirement savings in bank fixed deposits which are traditionally considered to be the safest. At present, the interest rate for public sector banks is 7.5 - 8 percent ( Indian Perspective). This is slightly higher than the rate of inflation. Regular Fixed Deposits offer an additional interest of 0.25% or 0.5% for the senior citizens. 8.25 - 8.70% interest is offered through a special scheme for senior citizens in private banking and small finance banks.
At present, the deposits made in the name of an individual in a bank or small finance bank is covered by deposit insurance up to Rs.5 lakh along with interest in India. In case of bank failure, a person can get a maximum of Rs 5 lakh along with interest. This would different from country to country with the deposit protection schemes offered by the central/banks.
Therefore, the investment in splits to attract to the investment ceilings in multiple banks are the options of the investors.
Post Office Monthly Income Plan
This Post Office Monthly Income Scheme is designed to generate monthly interest income. As this is a central government scheme there is 100% guarantee of investment and interest income. The amount made in this scheme is currently earning 7.4% interest per annum. A maximum of INR.9,00,000 ( ~ USD 10902.75) can be deposited in one name. If this is a joint account, you can deposit up to INR 15,00,000 (~ USD18171.26). At present, if a couple invests Rs 15,00,000 (~USD 18171.26) , they will get INR 9,250 (~112.06) per month- which is a monthly return of ~ 0.62%. The annualised rate of return is: 7.4%
When two people invest in a joint account, they should invest equal amounts. You can get monthly interest income. The maturity period of this scheme is 5 years.
No withdrawal is allowed within one year of investment. A penalty of 2% of the initial investment amount is levied if the deposit is made and the money is withdrawn before one to three years. A penalty of 1% will be levied if withdrawn within five years.
Therefore, it is better to plan the investment accordingly for at least five years.
Though the RoI is low, many considers this because this instrument considered as a safer deposit.
Special Savings Scheme for Senior Citizens
It can be termed as one of the best savings plans for senior citizens. The reason is that this scheme offers the highest interest income of 8.2% per annum among post office savings schemes. Senior citizens who have completed 60 years of age can join this scheme and benefit from it. Interest will be paid every three months.
Retired defense personnel who have completed 50 years and retired personnel above 55 years of age can join. The minimum investment is Rs.1,000 (~12.11 USD). One can invest up to a maximum of Rs.30,00,000 ( ~ 36342.51). A couple above 60 years of age can invest Rs.60,00,000 (~USD 72685.02). Maturity period is 5 years. This account can be opened jointly by the couple as a joint account. Income tax exemption up to Rs.1,50,000 (~USD1817.13) in a financial year subject to conditions under Section 80C of the Indian Income Tax Act.
No interest if withdrawn within one year of plan commencement; The interest already paid is deducted from the principal and the remaining amount is available. 1.5% of principal if cancelled before 2 years after one year, 1% of principal if cancelled more than 2 years before 5 years. Interest income is taxable. Meanwhile, interest up to Rs.50,000 (~USD 605.71) in a financial year is tax-free. This scheme can be joined by leading banks.
Annuity plans from the life insurance companies
Life insurance companies have annuity plans. In these lump sums can be invested for one's lifetime or for a specified number of years. There are many types of annuities. Let's look at some of them.

1. A type of lump sum annuity throughout life. However, the investment amount made in this is non-refundable. In the next category, the same amount will be paid annually for 5, 10, 15, 20 years. After that, if the investee is alive, then the specified amount will be paid for the rest of the period; But they will not return the invested amount.
2. It is a type in which a fixed amount is paid as long as the investor is alive. In this mode the invested amount will be available to the heir after the death of the depositor.
3. One method is to increase the pension amount like 3% per annum throughout life. In this, the investment amount will not be returned. A policy with this option is designed to cope with inflation.
4. As long as the investor is alive, the specified amount will be paid as annuity. Thereafter, 50% pension is given to his partner (husband/wife) in one category. They will not return the amount invested in it.
5. As long as the investor is alive he will get fixed amount as pension. After that, his spouse also gets the same amount of annuity is another type. The amount deposited is also non-refundable.
6. The investor gets a certain amount as annuity till he is alive. After him his spouse will be paid the same amount. After the death of both, the heir will get the investment amount back.

As per the requirement of the investor he can choose any of the above mentioned types. Once a category is selected, it cannot be changed. The investment made in this annuity plan has the facility of receiving monthly/quarterly/half-yearly/yearly annuity.
There are Deferred Annuity schemes and Immediate Annuity schemes where pension is available after several years. One can calculate how much monthly amount as pension and when and choose the plan accordingly. The policy can be taken individually or jointly by the couple. There is a tax benefit of up to Rs 1,50,000 (~USD 1817.13) in a financial year under sub-section 80CCC of income tax section 80C for the premium paid in this policy.
The annuity is subject to income tax. One has to pay tax according to which base tax bracket one falls under. Annual interest income is around 8% - 9% depending on how long the annuity is required and in what manner.
National Pension Scheme -NPS from the Government
60% of the amount invested in the NPS (National Pension System) scheme during the working period will be given at the age of 60. There is no income tax on this amount. Remaining 40% amount is invested in some scheme of insurance company and pension is paid. A total of 14 life insurance companies have been selected to invest the NPS amount. Like the annuity types of life insurance companies, there are many types of NPS plan. You can choose as needed. This also earns interest income as much as the annuity plan.
Rental income from Building Assets:
Income generation in old age by renting out houses or buildings has long been a practice. In India, annual rental income is around 3% of property value. If the value of the house is Rs.50 crore, 3% of it is Rs.1,50,000 (~USD 1817.13). That means a monthly rental income of Rs.12,500( ~USD 151.43). 8% is a good return if the value of the house increases by more than about 5% per year.
If this is a commercial building then you can expect a rental income of 8% per annum. If the value of the property increases by around 5% - 8% per annum then this can also be a good investment. But buying commercial buildings would require crores of money.
Mutual Fund- Systematic Withdrawal Plan (SWP) Method
Retirement portfolio should be invested in Mutual Funds with 50%, 30% and 20% in low risk debt funds, low risk hybrid funds and high risk equity funds respectively. In this, from the next month in debt fund investment, you can spend a fixed amount per month in SWP method called Systematic Withdrawal Plan. After 2, 3 or 4, 5 years, you can spend money from hybrid funds and equity funds according to the price rise. If you take around 5 percent per annum from the pooled fund, it is likely to come in around 20-25 years. For example, if a person has a pooled fund of Rs 100,00,000 (Ten Million USD), 5% of that is Rs 5 lakh (~USD 6057.09), ie Rs 41,660 ( 504.68 USD) per month. On the one hand, if a mutual fund earns an average return of 8% - 10% per annum, it will come in the long run.
So consider these schemes or any equivalent retirement schemes to build your retirement investment.