Tips on Making Prudent Investments After Retirement
While you may have saved money before retirement, investing it correctly after retirement helps manage your finances efficiently, so you can enjoy the same standard of living as you were before. The returns from investments can be used to pay for your living expenses, your family’s expenses, and perhaps even pending responsibilities like your child’s or grandchild’s education. Banks, financial institutions, and the government have all come up with numerous schemes that can help you finance your retirement better. Some of these include FD (Fixed Deposit) , senior citizen saving 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 of the various available schemes, and then determine what it is you want from them. While some offer high returns, others keep your savings safe. If you are investing post retirement, it is best to keep your risk at the lowest and divide your investments among the options that give you 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:
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. They deliver steady and fixed returns over your chosen tenor. The interest rate on FDs for senior citizens is also usually higher. Bajaj Finance, for example, offers its senior citizen customers up to 8.10% interest depending on the fixed deposit scheme selected. Not only do FDs offer 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, and non-cumulative deposits.
Read more about risk free investments for senior citizens in India https://blog.bajajfinserv.in/5-risk-free-investment-options-for-senior-citizens-in-india/
Senior Citizen Savings Scheme:
The Government of India has created a personalized option of investment for senior citizens seeking retirement income. Called the Senior Citizen Savings Scheme, this offers its investors high interest returns of up to 9.2%. In this scheme, investors can deposit a maximum amount of Rs.15 lakh and is ideal for customers aged 60 years and above.
Post Office Monthly Income Scheme:
This scheme offers its investors an interest 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.
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 fund’s performance over the last few years to judge its safety and invest in equity via this option. It is important to note that mutual funds rise and fall with market fluctuations that can be unpredictable, which makes them a slightly riskier option to invest in.
Read more about saving tax with Mutual Funds https://blog.bajajfinserv.in/save-tax-by-investing-in-mutual-funds/
Any or all of the above choices could be ideal for a retiring investor, but it is important to keep in 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 Bajaj Finance. It offers high interest on FDs and more safety on its mutual funds to give you the best returns. Even you can use FD Calculator to check your maturity amount.