How To Invest For Retirement At Age 30 Without Taking Much Risk

Are you planning to take a step ahead for your retirement planning? Have you have a look at the retirement checklist before taking your decisions of investments? Do you think it is difficult to save money for retirement due to high expenses of modern days? In that case I will tell you how you can start investing for your retirement at the 30 years without taking much risk.

Although you may use many retirement calculator to find out how much money is enough to live a perfect life after retirement, but I am sure that no one can tell that kind of figure. So without doing much calculation, we should start saving our maximum money and reduce unnecessary expenses to create a good financial habit.

Where to invest for retirement to get good returns with low risk

As you are 30 years of age now, considering the idle retirement age of 60 years you will get enough time to invest money. For an aggressive investor stock market is the best way to create huge wealth after 30 years for retirement. But if you are moderate risk taking investor, you have to depend up on the typical investment options in India to save money for retirement.

Actually there are couple of options available with which you have to start your retirement investment to get moderate return in long term. But you have to allocate enough money in every investment product to reach your target retirement corpus.

Top 5 Investment options to save money for Retirement with moderate return

EPF or PPF: PPF or EPF is the best investment product of current month from which you can expect a very good return in long term. In fact the maturity value is also tax free. Right now PPF is drawing the highest interest after all deductions.

Fixed Deposit Schemes & Other Small Saving Schemes: Bank FD or post office schemes are not a long term investment options though, but you can reinvest your matured amount in these products without utilizing the amount. You can also check for corporate FDs for higher returns.

Investing through Mutual Fund : This is the best way as you are not exposing to stock market directly and also can enjoy the benefit of share market. Investing in stock market for longer term will give the best return as per history data. Here you can find a easy guide to start your first mutual fund investment via SIP.

Pension Plans, NPS: Pension plans or annuity plans are good for retirement savings as they will block your money till you retire and the release small amount or pension after retirement. I don’t like these products personally. You can either invest in NPS or choose any pension plan from banks or insurance companies.

Life insurance with Savings option: This is one of the most preferred investment option in our country. Mostly people choose these insurance cum savings scheme to save income tax. If you are also doing the same, make sure you choose an insurance product which will give a good return and stay invested for longer period.

How much money is enough to retire at 60?

Frankly speaking, I don’t believe in these calculations as no one can say that how much amount is necessary for life after 60. But yes you have to try to save as much possible to make the corpus so big that it can take care of yourself. You can check out my previous article where I have shared a calculation on how to retire with 1 crore.

So do you think these are the best way to save money for retirement in India? If not how are you planning to save money for your retirement at the age of 30 years? Do you think you can work & retire at 60? Share your thoughts and experience about this topic by writing a comment below.

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