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Know How you can Increase your Retirement Fund by 54%

According to a 2016 report by the Ministry for Statistics and Programme Implementation, there were more than 104 million elderly citizens residing across India. While these numbers were reliant on the 2011 census, the population continues to increase at approximately 3.5% per year.



retirement fund

Considering that 2020 will witness India boasting about being the youngest nation, the impending senior citizen boom is expected to engulf 20% of the population by 2050. Following such an increased population of retirees, much attention is being paid to their present and future financial well-being.

It is well reflected via investment options like the senior citizen fixed deposit scheme that accounts for higher and assured returns against the least possible risks. It is in perfect line with the primary objective of the financial product in discussion – offer them with convenient access to adequate funds, despite the lack of a permanent source of income.

How can you boost your retirement fund with FDs?

With smart investment options in the form of Fixed Deposits from NBFCs like Bajaj Finance, individuals can draw multiple benefits that include the additional 0.35% Bajaj Finance FD rates of interest. Such an elevated interest rate has a considerable impact on the interest payouts, and hence on the maturity amount withdrawn. 

With an additional measure of convenience added by financial tools like FD calculators, one can calculate the maturity amount based on factors like chosen tenor, investment amount, etc. It helps them decide and settle upon the financer that best caters to their monetary requirements. It is feasible in cases of the aforementioned Bajaj Finance FD rates that is set at 8.7%.

For example, let’s assume your retirement fund amounts to Rs. 15 Lakh and you decide to invest it in a fixed deposit with a tenor of 60 months. In this case, your withdrawn maturity amount results to Rs. 22,76,350. This withdrawn amount is adequate to cover numerous expenses during your retirement days. 

Apart from the obvious benefits of earning guaranteed returns on the surplus cash, senior citizens can benefit from these risk-free investment options in multiple ways.

Why are fixed deposits a preferred smart investment for retirees?

In most cases, senior citizens suffer from the absence of fixed monthly income coupled with low risk appetite, which is why fixed deposits make a preferred option for many.

Moreover, senior citizen fixed deposit scheme also comes with multiple other lucrative features, such as – 

  • Avail loans in cases of emergencies – In case of senior citizens, the most uncalled for emergencies involve that of a medical situation. Considering the increased cost of medical treatments, managing such expenses in the post-retirement days can be a financial hassle. Under such circumstances, fixed deposits from reputed lenders offer individuals with the provision to avail advances against the invested amount. It ensures that there is no need to liquidate other savings to gain financial stability.
  • Aids in meeting recurring and non-recurring expenses –
  • With fixed deposits, the elderly applicants can meet their financial goals and make life easier in their golden years. It is feasible with non-cumulative fixed deposits wherein the applicants are allowed to choose their frequency of payouts and therefore meet their recurring and non-recurring expenses. 
  • Easier to invest and convenient to monitor –
  • With reputed financers implementing online services as well as dedicated mobile applications, monitoring of online senior citizen fixed deposit scheme accounts have become significantly easier. 

Moreover, a streamlined application procedure along with nominal eligibility criteria and minimal documentation makes it convenient for pensioners to apply for the same. 

  • Market independent schemes offering guaranteed returns – Unlike market-dependent investment schemes like equities, fixed deposits are unaffected by any fluctuations in the financial sector. Subsequently, the rate of interest remains constant across the tenor that can be computed from beforehand. It offers individuals with the opportunity to streamline their financial plan with an FD calculator.

Taking into account such host of benefits offered to senior citizens, availing these smart investment options is deemed preferable. Also, elderly applicants need not wait to accumulate a high corpus to invest in such schemes, since the minimum amount is set at Rs. 25,000 only. With assured returns that can be as high as one and a half times the corpus, they are perfect for those with an unstable source of income post their retirement days.

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at HighlightStory