A Linear Programming Approach to Invest Provident Fund of Retirees

Old age is an unavoidable period in everyone’s life. Although, it cannot be avoided everyone tries to make it easier at least by financially by proper pre-planning. Many government employees in India have pensions but the people working in private sector do not get it. But they receive a one-time Provident Fund (PF) at the time of retirement. This paper proposes a Linear Programming (LP) model to help retired individuals to strategically invest their Provident Fund in multiple asset classes. By considering factors such as risk, amount of investment and return rates, the model provides optimized investment suggestions to maximize returns without compromising financial security. The model uses LP to determine the best portfolio allocation, offering retirees a quantitative tool to enhance their investment decisions by properly verifying all the possibilities.