How to Safeguard Your Retirement Savings from Stock Market Crash

Saving for retirement is one of the biggest priorities of investors, especially those approaching their retirement soon. The same is a must, whether you like it or not, to manage a comfortable life post-retirement. Therefore, you must start building a corpus at an early age to cover retirement expenses and maintain your quality of life. Also, investment in the stock market might seem like a good prospect but there are too many risks involved. Hence, if you are planning to invest in market-linked securities, you must consider the associated risk as well.

• The market might fluctuate by the time your investment matures, lowering down the ROI by a considerable percentage.

• The worst of all, the market may even crash. In case the probability comes true and the stock market crashes, the investments done in market-linked securities are likely to fail. The investor won’t even be able to retrace the principal sum invested.

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Therefore, what can be done to safeguard your retirement savings from the stock market crash? The answer is to invest in non-market linked securities such as Senior citizen FD scheme.

  

Invest in a senior citizens FD scheme:

Senior citizen FD scheme, unlike all the other market-linked securities, come with the highest degree of safety. Plus, the additional benefits offered with senior citizen FD scheme make it worthwhile:

(1) The interest rates on FD are higher than the average, and

(2) The TDS exemption limit is Rs 50, 000.

Bottom line:

You can also invest in government-backed up investment schemes launched especially for senior citizens.