How to Have a Steady Income Even After Retirement

Many people fear retirement, because they will no longer have a steady source of income and they will have to depend on their savings, in order to survive. However, just because you no longer have a regular nine to five job, it does not have the mean that you will not have a source of income. If you plan in advance, retirement could be a treasured period of your life, where you have the time and the resources to do everything you have ever dreamed of. Hence, it is extremely important that you do everything in your power, to make sure that you do not out live your savings and that you have more than enough funds to live comfortably. There are a number of ways through which you can continue to have a monthly income, even after retirement. Let us look at all the options one at a time:

• Provident Fund Account While you are earning, it is best to apply for a provident fund account. In this manner a small proportion of your income

is set aside, every month. This amount is deducted from your regular salary. Thus, you learn to plan your expenses around it and can live accordingly. In this manner money is saved for the golden years and this fund earns a good amount of interest. Once you have retired, you can depend on this money for your day to day activities.

• Retirement Plan Although the provident fund is a great way to save money for the long run, the amount that is accumulated may not be enough to fulfill all your dreams. With this in mind, it is good idea to opt for a retirement plan. Here a certain amount must be paid periodically as premium. Over the years, a significant amount of money can be collected. Once you reach the age of retirement, you can either choose to receive the entire sum assured in lump sum or you can ask for monthly installments. These plans will help to make sure that you remain independent, even after retirement.

• Investments There is no age bar when it comes to investments. Your hard earned money can be invested in any way you please. From real estate to the capital market, the opportunities are endless. In this case, a good amount can be eared as returns and this will be extremely beneficial in maintaining a dependable source of income. The best way to enjoy a good retirement is to start planning well in advance. By taking up one or all of these options, you can be sure that your golden years are the best years of your life.