Retirement tips for NRIs

Time is always changing and so is age. Yesterday you were a child, today you are young and working hard to earn your livelihood and give the best of the world to your children. And tomorrow you will grow old and retire. You may be secure today and may have planned for your child’s future, but what about your post-retirement years?

Home coming

Most of the Non Resident Indians (NRIs) living aboard plan to come back to India at some point in their life. So, it is essential that they plan for their retirement in India itself. Whether you have recently started working or are at the end of your career, make an inclusive plan to reach your retirement goals today.

With the Indian economy growing rapidly, Indian markets have several investment options available for NRIs focused at their retirement which would assure the financial steadiness and support in their old age.

Investment options

As per provisions by the Government of India, NRIs are given several facilities as far as investments are concerned. They include:

  • Opening a bank account in India
  • Investment in securities and debt instruments, and immovable assets such as real estate that would give assured returns in the long run.
  • Low risk investments and long term investments such as Post Office Monthly Income Scheme (POMIS), National Savings Certificate (NSC) and endowment and money back polices.
  • If you have surplus cash, consider investing a small amount every month in a Systematic Investment Plan (SIP) of a growth fund after choosing the option that suits your requirement.
  • If you have already retired and have received a sizeable retirement corpus, invest wisely to generate a good cash flow for the next 15-20 years. Inflation may erode your income from safe investments, so keep in mind an inflation figure of roughly 7% and choose investments that would beat that rate.
  • NRIs holding bank accounts in India can also park their funds in fixed deposits to get a fixed return on their investments. Bank FD rates tend to turn attractive in a rising interest rate scenario.
  • As a general rule of thumb, one’s exposure to debt in his portfolio should be directly proportionate to his age. So, a person who is 26 years of age, should ideally have 26% debt exposure in his portfolio as he is in a better position to take risks at that stage in his life with equity investments.


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