Step 1 of 3

    NEXT Skip


    Step 2 of 3


    Step 3 of 3



Tips on making prudent investments after retirement

  • Highlights

  • 8.5% interests offered by Post office monthly income scheme

  • Interest ratesup to 8.10% for Senior Citizens Fixed Deposits

  • Influence of market forces in mutual funds

Saving diligently may not be enough for retirement, due to growing inflation and increasing medical expenses. However, the right investment strategy can help you enjoy the same standard of living, as you enjoyed before.
You can use the returns from your investments to pay for your living expenses, your family’s expenses, and perhaps even shoulder pending responsibilities like your child’s or grandchild’s education.

Banks, financial institutions and the government have come up with numerous schemes to help you finance your retirement better. Some of these includefixed deposit schemes, senior citizen savings scheme, post office monthly income scheme and mutual funds.

Investment options that are beneficial for you post retirement

Before choosing one or even multiple investment options, it is important to conduct detailed research ofthe various available schemes. You can later

determine what it is you want from these options. While some offer high returns, others ensure safety of your savings. If you are investing post retirement, keep your risk at the lowest, and divide your investments amid options providing you with liquidity, tax savings and good returns. When making a final decision, you can choose the best investment option for yourself from these top schemes for senior citizens:

1.Fixed deposits:

Most risk-averse investors prefer fixed deposits over other forms of investment. This is because FDs offer growth for your savings, while keeping them absolutely safe and sound. Theydeliver steady and fixed returns over your chosen tenor. The interest rate on FDs for senior citizens is also usually higher.

Bajaj Finance offers its senior citizen customers up to 8.10% interest depending on the fixed deposit scheme selected. Not only do FDs offer you a range of financial gains, they are also free from market fluctuations, making them a risk-free investment. There are numerous schemes for FDs that you can choose from, like recurring fixed deposits, cumulative deposits, non-cumulative deposits.

2.Senior citizen savings scheme:

The Government of India has created a personalized option of investment for senior citizens seeking retirement. Called the Senior citizens saving scheme, this offers its investors high interest returns of up to 8.30% per annum.In this scheme, investors can deposit a maximum amount of up to Rs.15 lakh and is ideal for customers aged 60 years and above.

3. Post office monthly income scheme:

This scheme offers its investors a rate of almost 8.5%. It was designed for senior citizens and is sponsored by the Indian Post Office. This scheme helps the investor receive a steady monthly income, and involves investing money over a period of 6 years with a maximum investment of Rs.4.5 lakh. The returns from this option are taxed based on the income bracket of the investor.

4. Mutual funds:

With a bit of research and study, you can mitigate the risks associated with mutual funds and get high returns as well as tax deductions on your investment. Check the asset manager and the funds’ performance over the last few years to judge its safety and invest in equity via this option.

Any or all of the above choices couldbe ideal for a retiring investor, but it is important to keepin mind that while selecting an option, you should carefully examine the terms and conditions attached with every investment scheme. This will give you an idea of what you are entitled to and the rules binding your investment.
When looking for the right financial company to entrust your post-retirements savings with, consider financiers offering high interest on FDs and more safety on its mutual funds to give you the best returns.

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?