The Top-5 Things To Do To Create A Retirement Corpus

As you approach the best years of your life, you need more money than you ever required. With every passing year, your responsibilities will grow, and life may bring unexpected surprises. To lead a happy and financially fulfilling life, you need not only a strong bank balance but also a sustainable retirement plan. 

Read on to know the top-5 things any intelligent professional would do to secure their finances and lead a happy life after retirement. 

1. Invest in a Corporate Fixed Deposit

It is a known fact that corporate fixed deposits come with higher interest rates than conventional financial institutions like banks. However, investors often feel concerned about the safety of corporate FDs. As a fact, corporate companies accepting public deposits go through stringent evaluation processes and get a license from the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs. Additionally, they get credit ratings from agencies like CRISIL and CARE. PNB Housing, for instance, has a track record of thirty years and offers AA+/Negative or and CARE AA-rated fixed deposits, considered the benchmark from a security perspective.

2. Frame an Investment Strategy

Creating an investment strategy is paramount when you are aspiring for a stable retirement. Ideally, you should keep 40% of your net income for everyday spendings. Invest 30% in a safe fixed deposit with inflation-beating interest rates for the long-term. A long-term fixed deposit protects your capital from interest rate fluctuations. For the rest 30%, you may invest in a non-cumulative fixed deposit with a monthly payout option. PNB Housing, for example, offers fixed deposit interest rates of up to 6.95% with a monthly interest payout option. 

3. Create an Emergency Corpus

In the golden years of your life, an emergency may come uninvited. You must be ready with a corpus that can tackle the gravest of disruptions. Invest in a fixed deposit that offers a premature withdrawal facility. Some financial institutions like PNB Housing offer loans against FD facility, and you can avail a loan of up to 75% of the principal amount at a 2% higher interest rate than the highest fixed deposit interest rate.    

4. Start Early and Get the Benefits of Compounding

When your sight is set on retirement, you need to start early. Investing in a fixed deposit periodically enables you to grow your capital faster, as you earn interest on interest. Hence, to get more money after retirement, try to invest in cumulative fixed deposits and refrain from withdrawals before maturity. You can also opt for auto-renewal, in which the principal and the accumulated interest get reinvested after maturity.

5. Modify Your Investment Strategy

While a fixed deposit is an excellent way to grow money and create a retirement fund, sometimes the equity market may far outperform an FD. Also, you may find financial institutions offering better rates than your existing institution. In such cases, it is better to modify your investment strategy and pick the right investment option.


A robust retirement fund can give you the security and stability you require. Ensure that you have a high-yield fixed deposit in your investment plan.

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