Tax and finance planning should done taking into account both present requirement and future or post retirement requirements.  Planning is all about thinking of tomorrow which is totally uncertain. The priority of planning should be regular income and a health cover, as this is the essential need in retirement life.

Considering the Regular income, you can contribute to Post Office MIS(Monthly income Scheme), which returns 8% or invest to Senior Citizen Saving Scheme which offers 9% maximum investment & the maximum investment allowed is Rs. 15 lakh.

At retirement you can receive commuted pension and the best investment for that pension is to put that money in SWP (Systematic Withdrawal Plan), which offers great value in terms of tax free withdrawal after one year of lump sum payment in equity oriented fund. SWP can be managed conveniently through ATMs/Internet. A fix amount will be withdrawn every month from your SWP and deposited to your account. The balance amount remains invested in Mutual Funds.

Home is one most valuable financial asset and an important component of net worth. After retirement, you may reverse mortgage your home for next 15 years with Banks/HFC (Housing Finance Companies) and they will give you monthly payments which will help you to cover your regular expenses for the unknown future.

In retirement planning, thinking about rental income from property is secured and conventional method. Its returns are low i.e., 2-4% in residential property and 6-8% in commercial property offers and after deducting the income tax, wealth tax or municipal tax payable if any the real return is too low. But it offers high security compare to equity oriented funds.

In case of surplus funds, investment in growth mutual funds should be made and get tax free income from dividends. Dividend on equities is also tax free but not regular.

One of the investment of which you can think about, from which specified monthly income can be earned by you is Investment in monthly income plan from mutual fund. It gives you a stable amount of funds each month to spend.

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