NRI Retirement Plans| North Loop Official Blog
North Loop Logo
North Loop
14 Oct 2020

NRI Retirement Plans

thumbnail for NRI Retirement Plans
Credit: North Loop

What is Retirement Planning?

Retirement planning is essentially the process of building a corpus of funds to use in the later stages of life. It includes identifying sources of income, managing assets and risk, estimating expenses and implementing a savings strategy. Ideally, retirement planning is a life-long process, and if you are an NRI who wishes to enjoy the same lifestyle even after returning to India, it is recommended that you plan ahead.

Why do you need to invest in retirement plans in India?

Medical emergencies - Age and health problems are pretty much directly proportional to each other. As your age increases, health issues also start increasing. Given how medical inflation is 14-15% every year, it only makes sense to invest in a sound retirement plan and not lose sleep over meeting hefty medical bills later in life. Even if health costs keep increasing, with a good retirement plan, you can be financially secure.

Inflation - The effect of inflation may not seem like much in the short term, but over the years, its impact can be massive. Also, in a growing economy like India, consumer-level inflation can be more than 5%. That is why investing in retirement plans in India that account for such anticipated inflation can prove to be extremely beneficial in the long run.

Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

Best place to retire in India -

If you are an NRI, the best place to retire in India would be cities that have good health care facilities, pleasant climate, adequate public transport system, low crime rate etc. While these are the basic requirements, choosing the best place to retire in India is a subjective topic that can differ from person to person. There are a variety of factors that you can consider while choosing your favourite retirement destination in India based on your lifestyle and other preferences.

What are the steps to retirement planning?

Set your retirement goals - Arrange your financial plan into short, medium and long-term goals.

Assess your current financial position - To achieve your retirement goals and invest in the best retirement plan in India for NRIs, you first need to take stock of your current situation and assess your financial position.

Calculate the amount you need - Calculate the money you will need for your retirement goals and account for the help you will get from your current financial status and wealth. You can use a retirement calculator India to get to this amount, and if done right, the planning can help you achieve this number soon.

Identify retirement corpus builders - Using a retirement plan along with provident and saving funds can ensure a recurring income post-retirement.

Create a monthly income generation plan - You can set up a system to generate monthly income from retirement corpus by taking an immediate annuity policy. That ensures a fixed income at regular intervals chosen by you.

The best retirement plan in India for NRIs -

Plan name and age criteria-
   
Plan name   
   
Minimum Age   
   
Maximum Age   
   
Aviva Wealth Builder Plan   
   
5 years   
   
50 years   
   
Bajaj Allianz Life Pension Guarantee Plan   
   
37 years   
   
80 years   
   
LIC Jeevan Akshay   
   
30 years   
   
65 years   
   
LIC Jeevan Nidhi Plan   
   
20 years   
   
60 years   
   
National Pension Scheme for NRIs   
   
18 years   
   
60 years   

Some other investment options for retirement planning -

Bank Deposits - Long term bank fixed deposits in India pay high-interest rates (7.50% with North Loop) and are a low-risk option.

Equity and Mutual Fund - Indian stock market offers a lot of opportunities for NRIs to invest and profit. Even though the risk is more, the returns can be higher as compared to other options.

Real estate - Property prices keep increasing with time, and therefore, this becomes a good retirement investment option.

Insurance - Insurance firms offer a variety of products for NRIs promising security and return to suit your retirement needs. You can choose from their various retirement and pension plans.

Conclusion - Even though the retirement age in India is 60 years, if you are an NRI whose thinking of moving back to the country later in life, you must address the need for retirement plans in advance. It is best to take into account all the necessities of life, the effect of inflation on your finances and also introspect how much time is left for you to reach the retirement age in India. Then you can start planning for it efficiently and consider investing in a good pension or retirement plan for a satisfactory life post-retirement. You can compare different retirement plans online with North Loop and even use our retirement calculator India to calculate how much you need for having a relaxed retired life.

Click hereto sign up with North Loop.

Save money with

No-fee banking, investments, remittances & insurance for the global Indian

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.