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Here’s how NRIs can plan a safe and secured retirement


India’s economy has demonstrated resilience in the aftermath of the pandemic. While there have been disruptions due to several global factors, the country’s continued strategy to stabilise the economy has played a crucial role in helping it make a strong rebound. Also, this has once again made the nation a stable investment avenue for its inhabitants as well as the NRIs looking to diversify their investments.

Often, retirement planning is off the radar for most people until they reach a certain age. However, it is imperative to plan for retirement well in advance for a robust financial future. Especially the NRIs who move away from their native land to ensure a brighter future, should know the best options to invest in. Here’s some good news for them: India offers a range of such options that they can leverage to make their money grow. Let’s round them up –

Guaranteed Return Plan

This plan falls under the ambit of traditional methods of investment. As they assure a fixed return, especially in today’s volatile economic conditions, these plans work amply well for NRIs. The investors can just lock in the rate of return at the time of purchase and go in for the long term easily. If you’re a risk-averse investor, this works even better for you since some of these new plans give returns as high as 7.2 per cent, which is higher than other options like FD or even PPF, depending on the terms and conditions. Other than this, NRIs who hold non-residential external accounts in India are eligible for a GST refund, which makes the plan even more lucrative. The tax benefits and life insurance component make it a well-rounded option that can be considered if you’re planning your retirement.

Capital Guarantee Plan

The Capital Guarantee plans work best for those with a medium-risk appetite. While the plan safeguards the principal amount from any losses by investing 50-60 per cent into debt funds, it also lets the investor enjoy the upside of the market by investing the rest into equity. A combination of insurance and investment products comes with tax-free returns and tax benefits, which help accumulate a decent retirement fund. It also offers the flexibility of monthly, quarterly or annual pay-outs which makes it a great option. If you are looking for a plan that helps you reap market-linked returns but are not too eager for the associated risks, go for this one to diversify your investment portfolio.

Annuity Plans

In the category of insurance-cum-investment plans, an annuity plan is considered ideal for retirement planning. Owing to its feature of regular payments that could be monthly, quarterly or annual depending on the investor’s choice, this is one of the popular plans for planning a safe and secured retirement. The plans invest your fund strategically and pay back a regular income to ensure a comfortable post-retirement life. Investors often opt for either of the two types of annuity plans – Deferred and Immediate Annuity. Under Deferred plans, you can accumulate your corpus and start getting an income later in your life. The immediate annuity plans, as the name suggests, allow you to immediately start receiving a pension. The feature that makes this plan more attractive is that it safeguards your principal amount to purchase the annuity and pays it back to your nominee in case of the unfortunate death of the policyholder. Finally, it is non-taxable and offers benefits under sections 80C and 10(10D). The policy is available to a minimum age of 18 years and goes up to 80 or even 99 years, depending on the plan chosen.

To summarize, India’s consistent economic development makes it a favourable time for NRIs to consider investing in the country. Although there are many choices, the above-stated ones have a particular element of safe and secure returns. However, to have a diverse and robust portfolio, it is advisable to invest for the long term and also analyse the features offered in each plan online. This will enable you to make an informed decision. So, for a sizeable corpus, weigh in different options and choose what works best for you.

The author is Head – Investments at Policybazaar.com. The views expressed are that of the author.





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