With never-ending expenses and a limited income, saving up enough money for your later years could appear virtually impossible. However, you can always ensure a regular income after retirement, if you take the right steps.
Choose Prudent Investments
For financial security, post-retirement savings would never be enough. It is important to invest wisely so that you can make your savings grow and earn regular income.
Choosing the right investment schemes is an imperative part of this plan. You need an investment plan that:
- Gives you income that matches or overrides inflation
- Allows you to maintain your standard of living
- Keeps you from being dependant on children or family
- Offers periodic payouts to manage daily expenses
Can you find the best investment plan for monthly income during retirement? Absolutely.
Additional Read: How to make your retirement funds pay you a monthly salary?
Best investment schemes after retirement for a monthly income:
Housing and real estate: The demand for real estate and housing is constantly on the rise. This means that once you invest in real estate, your investment is bound to grow in value over time. However, it is important to invest in areas that have a high demand and high prices. This option can be a good source of monthly income, if you decide to put a commercial or housing property on rent.
Investments in mutual funds: Mutual funds let you gain from periodic dividend returns while providing value and growth to your invested amount over a tenure.
However, investing in equity can be risky. There are various kinds of mutual funds you can choose from, like tax savings funds, which allow you to enjoy tax benefits.
The safe and classic company FDs: Your savings can be put to excellent use by investing in regular company fixed deposits. These offer immense growth to your investment over the tenor and also deliver fixed periodic interest payments. FD interest rates for senior citizens is usually higher. Bajaj Finance, for example, offers its retired customers an attractive interest rate on its Fixed Deposits.
Senior citizen saving scheme: The government has created this scheme for senior citizens seeking income after retirement. This scheme offers investors attractive interest rates of around 9.2% for a maximum limit of investing Rs.15 lakh. In this scheme, tax is deductible from the source investment. The amount invested usually matures in 5 years and can be extended to 3 more years. The interest is paid out on a quarterly basis.
Post office monthly instalments: This investment scheme offers payout on a monthly basis. It requires a minimum investment of Rs.1,500 and a maximum of Rs.4.5 lakh and pays interest at around 7- 8%. This option is taxable and may not be suitable from those in the higher income bracket.
Additional Read: How to get a monthly income with an investment of Rs. 50 lakh?
These are some investment schemes you could consider for regular income after retirement. They can ensure a safer future and allow you to maintain your lifestyle too.
Tips to keep track of the income from your investments
Select an investment scheme after thorough research and analysis:
- Keep close track of your interest payments
- Have a record tally of all your bank statements
- Read the terms carefully and dedicate a file to keep a record of the terms and conditions of each investment scheme
- If you have questions, make sure they are answered by the bank, lender or company you are investing with
Having a transparent and friendly experience with the financial company you choose to invest with becomes paramount after retirement. In your search for an investment partner, do look up Bajaj Finance, which offers high interest on FDs and various convenient services for senior citizens.
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