Wednesday, October 5, 2011

Retirement Planning Series - Building the Retirement Corpus

In the previous posts in the retirement series, we saw the following:
1. Why plan for Retirement? and
2. How much money will I need?
3. Where will the money come from?

The next logiccal step in the sequence would be to actually build the retirement corpus. In India, there are a myriad of investment options that are available. The most common ones are:
1. Bank Fixed Deposits
2. Stock Market Investments (Shares & Mutual Funds)
3. National Savings Certificate
4. Public Provident Fund
5. Unit Linked Insurance Plans
6. Gold
7. etc

As part of building your corpus, you are essentially building a portfolio of investments that you can use to fund your retirement. I have written multiple articles that can help you with that. They are:
1. Saving Taxes through Investments
2. What is an Investment Portfolio
3. A Conservative Portfolio
4. An Aggressive Portfolio
5. A Balanced Portfolio
6. Unit Linked Insurance Plans – De-Mystified
7. Life Stage based Portfolio

I would personally recommend that you read the last one on Life Stage based portfolio that advises on how you must plan your investments as you move on from one stage of your life to another. The stages considered are:

1. Single - Young and energetic
2. Just Married - Settling down with a new family
3. Expanding your family - Becoming a parent
4. Matured Individual - Children are grown up
5. Nearing Retirement - Old and wise

It is a good idea to begin investments early, and choose the Aggressive portfolio when you are young and move over to a balanced portfolio post marriage and when you are nearing retirement, switch over to a conservative portfolio.


  1. Hi Anand,
    can you please share best investment heavens for retired person? i wonder if there are more than POMIS,SCSS and FD's. please share your view man..anyways you have a excelletn blog.

  2. Mr. Vikrant,
    Thanks for the encouragement :)

    For Retired People Bank Fixed deposits are the best these days. POMIS, PORD, PPF, NSC etc are all good options but their returns are limited to around 8 to 8.5%, but these days banks offer upto 11% for senior citizens as rate of interest on fixed deposits. So, senior citizens with surplus cash must make use of the high interest rates and invest in them


  3. Thanks Anand,

    Thanks you for sharing your views. but i doubt investing maximum corpus in only one scheme as there are many schemes available in market for senior citizens.As we know we cant have partial withdraw in FD's. also i would like to know about monthly income scheme available with any company (let it be private) so that we can have regular income just foa sake. i heard about GMIP from Bajaj Allianz, how about that? also can we opt for investing multiple scheme rather than one scheme? i know that will reduce the returns, but what you suggest?

    Thanks for your time sir.

  4. Mr. Vikrant,
    In the same post, there are links to multiple posts in my blog that deal with how to create a full portfolio of investments for people of different age groups. The important ones for senior citizens would be:


    You can get a good idea of the various investment options available for people of different age groups.

    About Bajaj Allianz GMIP - I have very little idea about the scheme. I will try to do some research. But, from the name it looks like a ULIP plan. I would personally advise senior citizens to stay away from ULIPs.

    Hope that helps!!!


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