6 Investment Plans Post Retirement
Your expenses post retirement can be compulsory, obligatory or indulgent – whether it is financing your children’s education, tackling emergency health-care expenses or traveling the world.
All these expenses can be tackled easily, with cautious planning. You need to be aware of various investment options and schemes available, which will enable you to put your savings to good use and earn high returns.
Here are Top Investment Plans for you to Consider Post-retirement:
1. Senior Citizen Saving Schemes:
This is a scheme customized for senior citizens allowing a maximum investment of Rs.15 Lakh. The major eligibility criteria for this scheme is that the applicant should be above 60. Currently, it offers an interest rate of up to 8.6% per annum, which is reset every quarter.
However, the rate at which you invest is locked for the tenor of 5 years, which may be extended further up to 3 years. This scheme also offers tax savings under section 80C. It offers you interest every quarter and also provides the option to make premature withdrawals.
2. Company FDs:
These schemes are offered by various financial institutions and are ideal for senior citizens, paying more than bank FDs. Though everyone can start an FD, senior citizens are offered a higher interest of about 8.10%. The tenor for this scheme ranges from lender to lender; however, you can renew it according to your convenience.
You can take the first step towards securing your future after retirement by investing your PF money in the high-yielding Bajaj Finance FD. Here you can gain from attractive interest rates, flexible tenor, high stability ratings, online account management, doorstep service and more.
You can also choose between cumulative and non-cumulative FDs, with the latter offering you periodic interest payouts to fund your daily living expenses after retirement. This scheme promises stability, and is a healthy option in which to invest your Provident Fund money. You can even get loans against your FD during times of need. You can use FD Calculator to calculate maturity amount.
3. Tax-free Bonds:
These are securities that are issued by the government to raise finances for various projects. These are usually long-term investments ranging over 15 years or the period over which the project will be completed. The interest over this scheme is completely tax-free. The returns for these options range from 6.4% to 8.3%. This option is ideal for senior citizens because of its high yield and longer tenor.
4. Mutual Funds:
This option is known to provide the highest adjusted returns as it invests your money in the securities market. The right mutual fund investment may yield an interest that goes up to 20%, however this depends on financial markets.
So, while mutual funds are susceptible to risk, over time, they offer high returns, and also allow liquidity, based on the type of funds you choose. It is important for you to be aware of high-performing mutual funds and choose a financial company that you trust while investing.
5. Post Office Monthly Income Scheme:
This is a stable and safe scheme created by the India Post. You can invest a sum of money in multiples of Rs.1500 up to the maximum limit of Rs.4.5 Lakh for individual accounts and Rs.9 Lakh in joint accounts. Currently, the interest offered is 7.5% and is payable monthly. This scheme has a fixed maturity period of up to 5 years, however it allows you to make premature withdrawals. This scheme is ideal for retired investors since it offers a high yield and stable returns.
6. Real Estate:
Real estate can be a great option for investment for senior citizens as it not only means you own an asset, but also gives you monthly rental income. Select the right property by getting it valued and then either sell it or rent it out as the value appreciates.
Real estate can offer high returns, with the conventional increase being about 10% on the original investment. This option is however highly dependent on the market.
Diversifying your investments is ideal, so that you can reap the best benefits of all these investment options. When choosing from among these options, invest in a healthy mix and gain from both high-risk and low-risk options.