Retirement plans: Always check net return before making investments

These products are simple, transparent and easy to understand. The returns are guaranteed, and locking into a fixed rate feels reassuring at a time when deposit rates are declining

“Invest ₹1 lakh yearly, get ₹2 lakh annually.” Doesn’t this also sound like a great investment? You pay ₹1 lakh every year for 15 years, and then receive ₹2 lakh annually for the next 15 years, effectively doubling your investment.

 

If you are a salaried employee in your early to mid-forties, this may strike a chord. One of your biggest worries perhaps is managing expenses after retirement. Retirement-focused products that promise certainty can therefore look attractive.

 

Appeal of guaranteed returns

 

These products are simple, transparent and easy to understand. The returns are guaranteed, and locking into a fixed rate feels