How to invest after you retire?
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How to invest after you retire?

  • Highlights

  • Post retirement investments need stability, good return and liquidity

  • Senior Citizens’ Savings Scheme

  • Post Office Monthly Income Scheme

  • Investment in bank fixed deposit

Life after retirement calls for enough time to follow your dreams, less hustle along with a comfortable, quality life style. Proper retirement planning can ensure you have sufficient money to fund your retirement easily.
Saving money for investment is simply not enough…
Your money should grow above the inflation rate, or else the value of your hard-earned money may erode. To help you ensure optimal growth of your retirement corpus, we’ve come up with a few time-tested investment options given below:

Senior Citizens’ Savings Scheme

To avail this Scheme, you should be above 60 years of age. The benefits of this scheme include:

• Guaranteed returns
• Tax exemption under Section 80C
• Easy to open account in any bank or post office
• Quarterly interest payout with fixed interest rate • Premature withdrawal

Maximum limit for the account is Rs. 15 Lakh, but you may open more than one account. The interest rate is fixed by Ministry of Finance, Government of India quarterly. You can invest initially for 5 years, and then extend it up to 3 more years.

Fixed deposits

There is no upper limit on how much you can invest. You can choose monthly or quarterly interest payouts as well. Once you get a good rate, you can lock that for a longer period. The interest here is fully taxable, but you can invest in tax-saving FDs to get tax benefits under section 80C as well.
Also, you can be flexible with time. Based on your anticipated needs, you can create several FDs for different period. It is advisable to choose company fixed deposits, which enable you to earn higher returns with greater stability.
Investing in fixed deposits is easy, and it can help you provide excellent returns.

Post Office Monthly Income Scheme Account

This is another good option, to invest after retirement. This scheme is fixed for 5 years and there is a ceiling for maximum investment. You can invest Rs. 9 Lakh under joint ownership account and Rs. 4.5 Lakh under single ownership. If you have a saving account at post office, you can get the interest credited directly there. However the interest earned is fully taxable.

Additional Read: 5 Ways To Make Money After Retirement

Four Financial Advices for Millennials

Mutual Funds

Based on your risk appetite and risk-taking ability, you can enjoy benefits of higher equity returns with lower risks, with mutual funds. You can choose monthly income plans as well to ensure a steady cash flow over the years.
When you retire, your monthly income stops, so you need investments with minimal risk. However, due to inflation and other increasing costs, you need your investments to earn good returns as well. The above-mentioned investment options are catering to both the criteria. You need to analyse your situation and choose a mix of different investment options, which are most suitable for you. Invest well, to enjoy smooth and hassle-free retirement.



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