4 investments that will enhance your retirement portfolio
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4 investments that will enhance your retirement portfolio

  • Highlights

  • Invest in Post Office Monthly Income Scheme

  • Consider the Senior Citizens Saving Scheme

  • Choosing tax-free bonds

  • High returns with company fixed deposits

Retirement planning is an important aspect of your life as it determines how independent and comfortable you are, during your golden years. Familiarising yourself with rewarding and secure forms of investment will help you plan your retirement better.

While your pre-retirement portfolio can be more aggressive, your post-retirement portfolio should take risk into account and focus more on safety as well as monthly payouts. These investments can provide financial security once you are no longer earning a monthly pay check.
Here are 4 investment schemes that you can enhance your retirement portfolio with.

1. Company fixed deposit

Company fixed deposits offer high rates of interests that are more than those offered by banks. Investing in a company fixed deposit can prove to be beneficial as senior citizens are provided with higher interest rates. The Bajaj Finance Senior Citizen Fixed Deposit offers higher interest rate, to those aged 60 and above.
Since the interest does not depend upon market fluctuations, this form of investment is risk-free for retirees. This FD has also been rated stable by ICRA and CRISIL and thus is a reliable and credible investment avenue.


2. Post Office Monthly Income Scheme (POMIS)

This is an investment that has a lock-in period of 5 years. The maximum investment limit for this investment is Rs. 4.5 lakh if applied for under single ownership while joint ownership allows you to invest up to Rs. 9 lakh.
Interest is regulated quarterly and its rate is around 7.5% on an annual basis. Though the interest received is completely taxable, this investment provides you the comfort of having the interest gained added to your savings account.
This avoids the hassle of having to go to the post office regularly to collect a cheque. You can also request for the interest to be transferred from a savings account to a recurring deposit to continue growing your investment and savings.

3. The Senior Citizens Saving Scheme (SCSS)

The Senior Citizens Saving Scheme is a popular choice for most retired individuals and recommended by many financial advisors. The scheme is strictly meant for senior citizens or early retirees and has an interest rate of 8.4% per annum which is payable on a quarterly basis. The maximum investment limit is Rs. 15 lakh.
This can be applied for at a post office or a bank if you are eligible as per its criteria of being either a senior citizen or a retiree. The scheme has to be availed within a month of having received your retirement funds. Even though the scheme is for 5 years, it can be extended for 3 additional years after the completion of years.

Benefits of Bajaj Finance Fixed Deposit for Senior Citizens

Why do you need more funds post retirement?

Retirement can be a beautiful phase in your life, where you can pursue new hobbies and passion, while also spending quality time with your family and friends.

It can also become taxing at times, when you have limited income to cater to an array of expenses. It is important to have sufficient funds for:

1) Day-to-day expenses
2) Unexpected emergencies
3) Pursuing your hobbies and passion

Post-retirement, your earnings become nil, but your expenses remain constant. Here’s a look at why you need more funds post-retirement:





Do you want to continue enjoying your current standard of living, so you can make most of your retirement? If yes, it is time you start saving for your retirement, and devise plans to make profitable investments.

4. Tax-free bonds

Tax-free bonds are available only through government-based entities and can be issued by the same. You can invest in Indian Railway Finance Corporation Ltd (IRFC), Housing and Urban Development Corporation Ltd (HUDCO), NTPC Ltd, Power Finance Corporation Ltd (PFC), Rural Electrification Corporation Ltd (REC), Indian Renewable Energy Development and National Highways Authority of India (NHAI). This kind of an investment is completely tax-free; however, these are long-term investments that require a period of 10- 20 years to mature.

While planning your retirement, try creating a diverse portfolio of investments. However, always remember to go with something that minimises risk while offering high returns, so that you can continue to enjoy your life well into your retirement years.

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