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Top 5 Investment Options for Retired People in India

Personal Finance Tips & Advice 28-12-2022 | 5 min read

Introduction

Retirement is called the “golden age” because it is considered the beginning of a new life. Once you’ve done all your hard work, you are ready to reap the benefits. The choice is to use the hard-earned money you’ve saved over the years as you see fit. One thing retired people worry most about is their dried-up income source. What will happen once your savings are gone?

It will not. Here we have brought to you some of the best investment options you can use to make a steady income after you retire. The Indian government has introduced many retirement investment options.

Now seniors don’t have to keep looking for ways to make money or worry about inflation, living longer, or the rising cost of health care. These investment options give senior citizens several benefits and options for investing. With them, you can keep your financial freedom as a retired senior citizen and live the life you always wished for.

This blog discusses the top 5 retirement investment options that can guarantee you a steady stream of income after retirement.

Senior Citizen Fixed Deposits

For many people in India, fixed deposits have long remained one of the most popular retirement investment options. Since the amount of interest paid out can be set monthly, quarterly, semi-annually, or annually, it is also a safe bet for the age of the country. The plan is for those who are 60 years of age or older.

Eligibility

Fixed Deposits for Senior Citizens are open to all citizens over 60, including NRIs. Some banks and financial institutions allow those over 55 to apply for this investment option if they have chosen to retire early voluntarily.

What Can You Invest?

Seniors can open a fixed deposit at their preferred bank for as little as Rs. 5,000 (if they do it online) or Rs. 10,000 (if using a bank’s branch physically). The amount for this retirement investment option varies from bank to bank, but it never exceeds Rs. 2 crore. The term can range from 180 days to 1, 3, or 5 years.

National Pension Plan

Anyone who works in the public or private sector can join this program. They might want to put money into a pension account to use its benefits when they retire. The plan lets you withdraw a set amount after you retire. The balance is paid out as a pension each month.

Eligibility

Before, only government workers could use the program, but now, any Indian citizen can.

What Can You Invest?

It depends entirely on your accumulated pension and what you withdraw.

Senior Citizen Savings Scheme

The Government of India introduced this as one of the best investment options for retired seniors in India in August 2004. It is an instrument of debt and bears no risk.

Eligibility

It is only for people over 60 years old. Also, only Indian citizens are eligible, not NRIs or Hindu Undivided Families. Those who opt for voluntary retirement or superannuation at the age of 55 or if they are retired defense personnel aged 50 and above can also apply.

What Can You Invest?

The minimum amount you can invest in this retirement investment option is Rs. 1,000, while the upper limit is capped at Rs. 15 lakh. You can invest individually or jointly. The payout is quarterly on the first date.

Post Office Monthly Income Scheme

The Post Office Monthly Income Scheme is yet another risk-free way for seniors to put their money to work with much less risk. This program is under the purview of the Ministry of Finance and ensures that senior citizens get a set interest rate every month. That’s why this program is well-liked by retired seniors.

Eligibility

This program differs from the others discussed in this post because it is not just for seniors. Anyone who is at least ten years old can choose this program. The application process is also easy to understand. You can take care of this at a post office near you.

What Can You Invest?

It is also pretty popular in rural areas. For the Post Office Monthly Income Scheme, you only need Rs 1,500 to open an account. The most you can invest is Rs. 4.5 lakh.

Mutual Funds

Although the stock market is not everyone’s cup of tea, mutual funds have increasingly gained popularity for their ease of use and lower risk. You can invest in mutual funds by yourself, or even better, use the services of a fund manager to manage this investment option better. You can invest a certain amount monthly or make a lump-sum one-time investment.

Eligibility

Anyone is eligible. There is no bar to age or income.

What Can You Invest?

Monthly investments in some Mutual Funds start as low as Rs. 100. Ask your fund manager about how much you can invest in mutual funds.

Conclusion

Retirement is a time to relax, but it can also cause worry, especially if you lose a steady source of income. The retirement investment options described in this article can help older people enjoy this time without worrying about money.

One of the best things about these investment options is that they give you a fixed and guaranteed return for as long as the program lasts.

Senior citizens can now pursue all their goals after retirement without having to worry. Before you invest, you should look over the details of each plan. You can find out more about each of these plans online.


Piramal Finance offers some of the best investment options for retired people. Visit our website to explore more investment options and financial ideas!

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