Best retirement investment options for a self-employed person in India?

Asked 1d ago·5123 views

I am a freelance graphic designer with irregular income ranging from ₹50,000 to ₹2 lakhs per month. I do not have EPF or any employer-backed retirement plan. I am 38 years old and want to start planning for retirement. What are the best retirement investment options available for self-employed individuals in India? I can invest about ₹20,000-30,000 per month. How should I allocate between NPS, PPF, and mutual funds?

Asked by FinWiz24 Admin

2 Answers

As self-employed, you should contribute to NPS (up to ₹20,000/year under 80CCD(1B) + whatever you can in 80C via PPF). PPF is ideal for you because it is flexible — you can deposit any amount from ₹500 to ₹1.5 lakhs per year and it gives guaranteed tax-free returns of 7.8%. Allocate 50% to PPF, 30% to NPS, and 20% to a diversified equity mutual fund for growth.

Answered by Vikram Mehta · just now

Open a Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) for ₹436 and ₹436 per year respectively — these give ₹2 lakh accident cover and ₹2 lakh life cover at extremely low premiums. Irregular income actually favors NPS because you can vary your contribution each year without penalty.

Answered by Rajesh Kumar · just now