In the current scenario, people have started realising the importance of making savings and investments, considering their future plans and financial goals. Besides that, they are also seeking a sort of freedom from the traditional 9-to-5 jobs to make use of the opportunity to pursue their passions by making proper planning and taking early retirement from jobs.

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This prospect of saying goodbye to work and embracing a life of leisure, travel and personal fulfilment is something we all dream of and this requires long-term financial planning and a comprehensive strategy. There are also a lot of investment options in the market that investors can opt for while making plans for early retirement.    These plans not only offer a good return rate but are also affordable. 

Besides this planning, the decision to make an early investment also comes in handy in the long run as the earlier you start saving, the more returns you will receive in future. 

Read on to learn about how early investment plans can help in retirement. 

Early Retirement Plans for Good Returns 

Senior Citizens' Saving Scheme (SCSS): Anyone above the age of 60 can invest in this small savings scheme called the Senior Citizen Savings Scheme (SCSS). By investing in this scheme, investors can earn a regular interest income by paying the interest on a quarterly basis. This scheme comes with a lock-in period of five years for the principal but premature withdrawal is also allowed after the completion of one year but only after paying a penalty. The scheme is an ideal option for those who want to invest in a secure and risk-free savings instrument.  

Post Office Monthly Income Scheme (POMIS) Account: Another small savings scheme also known as POMIS, the scheme has a five-year investment term with a maximum investment limit of Rs 9 lakh in a single account and Rs 15 lakh in a joint account. While the interest is payable on completion of a month from the date of opening, the investment in POMIS doesn't qualify for any tax benefit. Being one of the highest-paying savings schemes, if started early, individuals can earn the maximum interest and returns in future. 

Bank fixed deposits (FDs): In comparison to normal fixed deposits, banks offer additional interest to senior citizens of different tenures. Fixed Deposits provide flexibility in terms of tenure and offer liquidity. Bank deposits can be opened by any adult and with a minimum amount of Rs 1,000. Thus, investors can indeed add most of their savings to FDs from an early age, without having to worry about huge deposits. 

Mutual funds (MFs): Another investment plan that can be considered for retirement is investing in mutual funds. In such cases, individuals can invest a portion of their funds in equity-backed products. Based on the plan's risk profile, one can invest a certain percentage into equity mutual funds (MFs) with further diversification across large-cap and balanced funds. Having the benefits of compounding, mutual funds are an ideal choice for young investors in their twenties and thirties as they can expect good returns, twenty-thirty years down the line.