To plan your finances post-retirement, you will need to pick instruments that provide swift growth to your capital along with stability and flexible investment options. As a senior citizen, you might rely heavily on interest income and would look for those instruments that provide periodic interest payouts. Below we have listed the best investment options that can help you meet your financial requirements post-retirement easily:
PMVYY (Pradhan Mantri Vaya Vandana Yojana) is an investment scheme regulated by LIC. It offers a high interest rate and allows you to invest up to Rs. 15,00,000 for 10 years. You will receive a regular monthly pension depending upon the investment amount. However, no tax benefits are applicable if you invest in this scheme.
National Pension Scheme is a pension scheme meant for individuals who want to safeguard their financial health post-retirement. Even senior citizens can invest in it and it is a good option if you are looking to invest in tax-saving instruments as it allows you to claim deductions of up to Rs. 1,50,000 every year. However, you can invest in NPS only till you get 70 years old.
- Post Office FDs
Post office FDs can be a good way to ensure regular income and growth for your invested capital. However, no additional benefit is applicable for senior citizens and only the 5-year FD will fetch enough interest to manage the effect of inflation on your income.
SCSS proves to be a safe and lucrative investment option because it allows you to withdraw interest after every 3 months. Moreover, the high interest rate and option to renew the investment for 3 years after the completion of the initial 5 years can make it a better option for you. However, premature withdrawals can be made only after the first year and the tenor options are also limited.
- Fixed deposits
Fixed deposits provide you with easy investment options and you are also able to choose a tenor as per your financial strategies. However, as bank FD rates are at their all-time low, you can consolidate your savings in corporate FDs that offer a considerable growth rate for your investment.
For instance, you can invest in Bajaj Finance FD that comes with an impressive FD interest rate of 6.75% for senior citizens. This high FD rate will be provided irrespective of whether you choose the offline or online investment mode. It is a stable instrument and this can be verified from the high credit ratings it has received from credit rating agencies like CRISIL and ICRA.
Also, a complete online procedure is available for investment that starts from filling an online FD form and ends with online verification of documents through the CKYC norms and digital payment options for making the deposit.
Apart from this, you get a flexible tenor range between 12 and 60 months and you can withdraw your investment anytime once it completes a tenor of 3 months. The facility of availing a loan against FDs during emergencies and the option of investing in multiple fixed deposit plans simultaneously make it the best senior citizen fixed deposit scheme in India. You can also earn a regular monthly salary by investing in its non-cumulative FD that lets you pick a monthly interest payout option. The option of withdrawing interest after 3, 6, and 12 months is also available with the non-cumulative Bajaj Finance FD.
As a senior citizen, you would like to invest in an instrument that offers a high growth rate and stable and convenient investment options. Though NPS, PMVVY, SCSS, and post office FDs provide these benefits, they might not meet your expectations when it comes to withdrawal norms, flexibility, and ease of investment. For that, you can invest in fixed deposits but even bank FDs have been reduced significantly in the last year or so. Therefore, investing in Bajaj Finance FD could be your best option as it offers a high interest rate and an opportunity to pick an investment tenor and FD type of your choice. It also lets you earn a monthly interest payout by investing in a non-cumulative fixed deposit.
Gaurav Khanna is an experienced & best financial advisor, digital marketer, and writer who is well known for his ability to predict market trends.