{"id":2927,"date":"2021-06-17T16:06:33","date_gmt":"2021-06-17T10:36:33","guid":{"rendered":"https:\/\/blog.tickertape.in\/?p=2927"},"modified":"2021-06-17T16:06:35","modified_gmt":"2021-06-17T10:36:35","slug":"ways-to-park-your-retirement-funds","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/","title":{"rendered":"Where to park your retirement funds?"},"content":{"rendered":"\n<p>Old age can be a burden in many ways. You need a financial cushion to ensure that you remain young at heart even when age is not on your side. Therefore, it becomes imperative for you to undertake <a href=\"https:\/\/www.tickertape.in\/blog\/age-wise-retirement-planning\/\">retirement planning<\/a> with great precision to have it smooth later on. <\/p>\n\n\n\n<p>Those in their 20s and 30s often sideline <a href=\"https:\/\/www.tickertape.in\/blog\/age-wise-retirement-planning\/?ref=blog\">retirement planning<\/a> as an absurd idea. They do not realise that the earlier they start, the more secure their old age would be. Another stark realisation that you need is that the constant flow of money is never an issue when you are earning. The same cannot be said for your retired days unless you plan things well.<\/p>\n\n\n\n<p><strong>This article covers:<\/strong><\/p>\n\n\n\n<ul><li><a href=\"#retirement\">What is retirement planning?<\/a><\/li><li><a href=\"#invest\">Where can you invest?<\/a><\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/06\/retirement-funds-1.png\" alt=\"\" class=\"wp-image-2932\" width=\"660\" height=\"2302\"\/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/#What-is-retirement-planning\" title=\"What is retirement planning?\">What is retirement planning?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/#Where-can-you-invest\" title=\"Where can you invest?\">Where can you invest?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/#1-Fixed-deposits\" title=\"1. Fixed deposits\">1. Fixed deposits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/#2-Provident-Fund\" title=\"2. Provident Fund\">2. Provident Fund<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/#a-Employee-Provident-Fund-EPF\" title=\"a. Employee Provident Fund (EPF)\">a. Employee Provident Fund (EPF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/#b-Voluntary-Provident-Funds-VPF\" title=\"b. Voluntary Provident Funds (VPF)\">b. Voluntary Provident Funds (VPF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/#c-Public-Provident-Funds-PPF\" title=\"c. Public Provident Funds (PPF)\">c. Public Provident Funds (PPF)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/#3-National-Pension-Scheme-NPS\" title=\"3. National Pension Scheme (NPS)\">3. National Pension Scheme (NPS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/#4-Mutual-funds\" title=\"4. Mutual funds\">4. Mutual funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/ways-to-park-your-retirement-funds\/#5-Atal-Pension-Yojana-APY\" title=\"5. Atal Pension Yojana (APY)\">5. Atal Pension Yojana (APY)<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"retirement\"><span class=\"ez-toc-section\" id=\"What-is-retirement-planning\"><\/span><strong>What is retirement planning?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When you are employed, you have a regular stream of income coming in. With retirement planning, the aim is to emulate that once you retire. It requires you to create a long-term investment plan that constitutes multiple retirement vehicles. You must remember time is money, and you will have to plan when the time is right. You can read more about retirement planning and the need for it in the article <a href=\"https:\/\/www.tickertape.in\/blog\/retirement-planning\/?ref=blog\">here<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"invest\"><span class=\"ez-toc-section\" id=\"Where-can-you-invest\"><\/span><strong>Where can you invest?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are some viable investment options for securing your future as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1-Fixed-deposits\"><\/span>1. <strong>Fixed deposits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Keeping your entire savings in a bank account is not a feasible option, given the low rates on offer. On the other hand, a <a href=\"https:\/\/www.tickertape.in\/blog\/alternatives-to-fixed-deposits\/?ref=blog\">fixed deposit<\/a> is not market-dependent as you get a fixed return on maturity, and the same is higher than the returns from a savings account. It also offers compounding benefits and provides a flurry of options, such as recurring, tax-saving, flexi, and more. FDs also allow premature withdrawal, making it one of the most viable options for retirement planning.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2-Provident-Fund\"><\/span><strong>2. Provident Fund<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are 3 well-known variants of a provident fund: EPF, PPF, and VPF.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"a-Employee-Provident-Fund-EPF\"><\/span>a. Employee Provident Fund (EPF)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The EPF is a mandatory requirement for salaried employees, where both the employee and employer contribute 12% of the former\u2019s salary. You can also contribute a higher percentage, but your employer is under no obligation to do the same.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"b-Voluntary-Provident-Funds-VPF\"><\/span>b. Voluntary Provident Funds (VPF)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The VPF is an extension of EPF. If you wish to contribute more than the mandatory percentage of your salary to your EPF, you can do so via the VPF. The <a href=\"https:\/\/www.tickertape.in\/blog\/vpf-interest-rate-eligibility-withdrawal-rules-and-tax-benefits\/\">Voluntary Provident Fund<\/a> has no restrictions regarding the amount you want to contribute. Also, it earns interest at the same rate as an EPF.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"c-Public-Provident-Funds-PPF\"><\/span>c. Public Provident Funds (PPF)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Whereas, PPF is a variant that accepts voluntary contribution by employees or self-employed individuals as one of the primary retirement planning vehicles. You can have a PPF account in addition to an EPF. The best part about PPF is that it enjoys an EEE tax status<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3-National-Pension-Scheme-NPS\"><\/span>3. <strong>National Pension Scheme (NPS)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Initially launched for public-sector employees only, the government has now extended the National Pension Scheme to all Indians. It is a low-cost, government-regulated pension scheme that accepts investment via <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-sip\/\">SIP<\/a> (systematic investment plan), enabling you to <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> a specific sum regularly. It lets you choose 3 asset classes &#8211; <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a>, debt, and government bonds. Post-retirement, you are eligible to receive a portion of your accumulated funds in a lump sum, whereas the rest comes as a pension.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4-Mutual-funds\"><\/span>4. <strong>Mutual funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A <a href=\"https:\/\/www.tickertape.in\/blog\/invest-in-mutual-funds\/?ref=blog\">mutual fund<\/a> pools money from the public and invests in a mix of vehicles depending on your risk propensity. It comes in different variants, such as equity-based, debt-based, and hybrid, enabling you to invest in the ones that suit you best. When you invest in a mutual fund, you get units in return, but there are no voting rights like in <a href=\"https:\/\/www.tickertape.in\/blog\/what-are-equity-shares-meaning-types-features-limitations-and-more\/\">equity shares<\/a>. If you are looking for tax savings, you can invest in funds that let you grab some tax benefits too.<\/p>\n\n\n\n<p>The trick? You need to invest in equity funds for the initial years and shift to a mix of debt and equity in the later stage of life. The former would let you get the most from your investments, whereas the latter would ensure imbibing the security factor, enabling you to better plan your savings and retirement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5-Atal-Pension-Yojana-APY\"><\/span>5. <strong>Atal Pension Yojana (APY)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Launched in May 2015, the <a href=\"https:\/\/www.tickertape.in\/blog\/atal-pension-yojana-registration-eligibility-monthly-contribution\/\">Atal Pension Yojana<\/a> is a part of the Social Security Schemes. It is available for all Indian citizens between 18 &#8211; 40 yrs of age. You can contribute a sum of up to Rs 5,000 to the fund. It is excellent for retirement planning, as you can secure a fixed pension post 60 yrs of age. You also get additional benefits for the spouse after your death.<\/p>\n\n\n\n<p>Retirement planning is crucial. So is having the right resources, given the flurry of investment vehicles available around you. You can access the assortment of tools that would help you gauge all your options with ease at <a href=\"https:\/\/www.tickertape.in\/?ref=blog\">Tickertape<\/a> app or website.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The ultimate goal of retirement planning is to have a regular stream of income coming in. Here are a few ways to achieve this<\/p>\n","protected":false},"author":46,"featured_media":2928,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[8],"tags":[],"acf":[],"modified_by":"Manonmayi","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/06\/Retirement-Fundpng.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2927"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=2927"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2927\/revisions"}],"predecessor-version":[{"id":2936,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2927\/revisions\/2936"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/2928"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=2927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=2927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=2927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}