Pension for gig workers; choosing an EV: Top personal finance stories

This week we write about how white-collar freelance professionals can build a retirement corpus and what to look for in an electric car

White-collar gig workers in urban India are less prepared for retirement compared to the general urban population, according to a survey. In this week’s lead story, Sanjay Kumar Singh and Karthik Jerome explore the reasons behind this gap. They provide an estimate of the retirement corpus gig workers should aim for by age 60 and suggest key financial products to help build this corpus. Additionally, they share dos and don’ts for gig workers embarking on this journey.

 

The second article discusses the rising popularity of electric vehicles (EVs) and how they’re becoming mainstream, both globally and in India. It touches on consumer trends, key factors driving EV purchases, and the importance of charging infrastructure and safety. Read this article by Namrata Kohli to learn about the significant factors you should pay heed to when buying an EV.

 

If you are the primary breadwinner with several dependents, term insurance is essential to secure your family’s future in case you are not around. This week, we present a table of term insurance premiums from leading insurers for a 30-year-old male, non-smoker, living in a metro, seeking a sum assured of Rs 1 crore. Refer to this table from Policybazaar before making a decision.

 

Equity Linked Savings Schemes (ELSS), also known as tax saver schemes, are ideal for those seeking Section 80C tax deductions along with the potential higher returns of equity mutual funds. ELSS funds have a short three-year lock-in period. Enter them with a minimum investment horizon of seven years to weather market volatility and earn reasonable returns. For those considering this option, consult Morningstar’s review of DSP ELSS Taxsaver Fund.

 

NUMBER OF THE WEEK

 

Silver crosses Rs 1 Lakh

 

Silver breached the Rs 1 lakh per kg mark this week in the physical market. Consumers are turning to silver as a more affordable option, particularly as gold has reached Rs 78,000 for 10 grams. The increase in silver’s value is not only due to its appeal as a less expensive precious metal but also because of growing demand from the electric vehicle industry and photovoltaic applications. These green technologies are expected to sustain the demand for silver for several years to come.

 

Retail investors should have at least 10-15 per cent allocation in their portfolios to commodities. Of this, silver can take up five per cent of the portfolio and the balance can go to gold. Investors should not enter silver unless they have a horizon of at least seven years.