Retirement is often termed ‘magic years’- the time to give laughter a bit more dosage after all the testing times for laughter. Yet the financial priorities now shift to a more stronger perspective focusing on the fund of stable income, safety, and peace of mind. Here, an investor has many options, and pickiding some will indeed(in some cases) make the retirement fulfilling.
The good news? There are always numerous investment avenues available for senior patients to ensure the golden years are comfortable and financially sound. Among these, mutual funds turned out to be a very wise avenue for the retirees seeking growth, liquidity, and reliable returns.
Best Investment Options for Senior Citizens
Senior Citizens’ Savings Scheme (SCSS)
- What it is: A government-backed scheme for individuals aged 60+ (or 55+ in case of early retirement).
- Why it’s great: Why would they want to? They pay interest quarterly at attractive rates, so they provide steady income with likely least risk.
- Eligibility: Citizens in India aged 60 or above (some exceptions for early retirees).
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
- What it is: This scheme operates as a pension scheme with monthly or annual payments for 10 years.
- Why it’s great: Post-retirement guaranteed income assured by the government.
Post Office Monthly Income Scheme (POMIS)
- What it is: Low-risk savings scheme, with fixed interest payouts being made monthly.
- Why it’s great: Best suited for anyone willing to take a fixed interest with minimal exposure to markets.
Senior Citizen Fixed Deposits (FDs)
- What it is: Specifically created FDs for aged people offering higher returns compared to regular FDs.
- Why it’s great: Safety of capital plus assured returns with flexible tenure.
Mutual Funds
- What it is: Funds managed by professionals who invest in stocks, bonds, and other assets for diversified growth.
Why it’s great:
- Good potential returns when compared to traditional fixed-income options.
- Flexibility (easy to buy and sell).
- Liquidity (easy and quick access to funds).
- Systematic Withdrawal Plan (SWP) to generate a regular pension-like income.
