Investment Options for the Retirees in India

To enjoy the twilight years after retirement, without discomfort or any kinds of financial woes, it’s important that a retiree invests the retirement corpus in a reliable investment scheme that provides a regular stream of income.

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The following are some of the best investment options for the retires to consider:

Senior Citizens Savings Scheme (SCSS)

SCSS should be a retiree’s first investment scheme to look into.
As the name implies, SCSS can only be availed by the senior citizens, i.e. individuals of age 60 and above. It can be applied for at the banks as well as the post offices. The term is fixed at 5 years but can be extended further by 3 years once it matures.

At present, the interest rate offered under SCSS is 8.3% which is paid on a quarterly basis. It’s taxable but remains fixed throughout the tenure, which means there is no uncertainty in the amount of monthly income.
A senior citizen is allowed to open more than one account under SCSS. However, the investment is capped at Rs. 15 lakhs which takes into account all the accounts. In other words, the total investment of all the accounts combined cannot exceed Rs. 15 lakhs.

Post Office Monthly Income Scheme (POMIS)

POMIS is another great investment scheme for the elderly. Just like SCSS, it comes with a 5-year tenure but a lower investment limit of Rs. 4.5 lakh under single ownership (Rs. 9 lakh under joint ownership). The interest rate is also lower than SCSS and rests at 7.5% at present. However, the amount is released on a monthly basis compared to SCSS which offers the return on a quarterly basis.

One notable difference between POMIS and SCSS is that the former can be opened by non-senior citizens as well. In fact, even a minor of 10 years can have a POMIS account with the help of a guardian.

Mutual Funds and Fixed Deposits

Mutual funds (MF) and fixed deposits are two of the most popular investment schemes in India. While the former offers great returns, it has a certain level of risk. However, the latter is completely risk-free. That said, if a retiree has experience with MF, then they can surely invest in the same according to their risk appetite.