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Top Investment Options For Retired Individuals

Updated On Dec 18, 2021

Unless an individual opts to work as a consultant, retirement signifies the end of an individual's earning era. It's critical for retirees to make effective and correct use of their retirement funds in order to lower their tax burden while still maintaining a regular stream of income. For many retirees, putting up a retirement portfolio that includes a hybrid of fixed income and market-linked assets continues to be a struggle.

A retirement portfolio that combines both fixed income and market-linked assets is the basic goal is to build. As a result, it's critical for retirees to establish a reliable, low-risk income stream. Many goods that generate money can help augment social security and retirement programmes while lowering risk. To understand more on investment options for retired individuals, read on.

Importance of Post-Retirement Investment Options

Following are some of the listed reasons on the importance on having post-retirement options -

  • Public Provident Fund (PPF)

PPF was launched in India with the purpose of organizing modest deposits and making a return on them through investment. It's also known as a savings-cum-tax savings investment vehicle since it allows a person to build a retirement fund while simultaneously saving money on taxes. A PPF account is a safe investment option for anybody who wishes to avoid paying taxes while still earning assured returns.

  • Fixed Deposit

Fixed Deposits are an important part of every retiree's portfolio since they offer assured earnings with no risk. These investments don't need to be monitored on a regular basis by their owners. Self-earning deposits allow retirees to make a single commitment and get assured returns at the end of the period. Not only are the money safe in a fixed deposit, but they may also be broken at low penalty rates if an individual requires cash quickly. From a personal standpoint, it's a wise investment that pays out for the individual.

  • Senior Citizens Savings Scheme (SCSS)

This plan includes a complete package as well as strong financial possibilities for retirees. This plan, among many other things, provides tax benefits, monthly dividends, and capital protection. If the investor has chosen voluntary retirement, the minimum age to participate in this plan is 60 years old; however, an individual can participate in this scheme if they choose it within a month of receiving their retirement income, they can retire at the age of 55.

  • Post Office Time Deposits (POTD)

Another long-running Postal Department programme that offers investment options with a modest minimum commitment amount is this investment scheme. The minimum investment amount is Rs 200, and the maximum investment amount is limitless, however it must be in multiples of Rs 200. Depending on the investment duration, the interest rate on this programme ranges from 8.2 percent to 8.5 percent. Despite the fact that interest accrues regularly, it is only paid once a year. The investment duration for this type of investment ranges from one to five years, with an early or premature withdrawal penalty of 2%.

  • Post Office Monthly Income Schemes (POMIS)

Another low-risk investment programme with an investment ceiling of Rs 4,50,000 for single accounts and Rs 9,00,000 for combination accounts that assures a monthly source of income. The minimum investment is Rs 1500, with further investments in Rs 1500 multiples.

The investment duration for this plan is five years. This 5-year term generates an annual interest rate of 8.5 percent. Although there is a low danger of losing money in this programme, there is a higher penalty for early or premature withdrawals. The penalty is 2% if money are withdrawn before the plan has finished three years, and 1% if funds are withdrawn after the programme has completed three years.


It's reasonable that retirees and those on the verge of retiring are apprehensive investors. They would rather have stability than risk. As a result, keep in mind that there is no such thing as a "risk-free" investment. Even the safest investment options have certain risks associated with them. As a result, when it comes to investing, one should always make well-informed decisions and judgments.

Also read: Why Is The Need For Retirement Planning?    

When Is The Right Time To Start Investing In A Retirement Plan?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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