Most of us have the same reason to invest money – to make it grow. However, choosing the best option that reaps sweet fruits during retirement is also important.- Post Retirement Investment
But if you have already retired, and are worried that your time for making stock market investments has passed, fret not. Investments can be made at any stage of life, even after retirement. The market offers some instruments that are not related to the investor’s age or the tenure of that investment – online investment options are some of them. These include short-term as well as long-term options.
5 Post Retirement Investment Options For Indian Citizens
Let’s have a look at some majorly opted post-retirement investment schemes:
Fixed Deposit and Recurring Deposit Schemes
Investing in fixed and recurring deposits is the most traditional way of creating wealth. Banks offer short-term and long-term deposit schemes at competitive rates. Senior citizens are offered additional interest rates on deposits. As this is a debt instrument, it serves to be a risk-free option. However, the interest rate offered is linked to the rates offered by the government. Hence, the interest earned is a bare minimum. 5-year deposits bring tax benefits under Section 80C.
In need of quick money, you can dissolve the deposit, though there are charges for premature withdrawal.
Senior Citizens Savings Scheme (SCSS)
This is a special scheme for senior citizens to invest in after retirement. The SCSS certificates can be purchased from banks and post offices. This scheme offers a higher interest rate as compared to other deposits, but it has certain constraints. SCSS also offers tax benefits under Section 80C.
National Savings Certificate (NSC)
These certificates are available at the post offices, for a 5-year tenure and in multiples of Rs. 100 (minimum investment is Rs 100 for the purchase of 1 certificate). This offers a guaranteed rate of return after maturity.
Investment in mutual funds is trending these days, and they do not require any particular age group or income of the investor – you can start online investing with an amount as low as Rs. 500. There are various funds available in the market, and investors can choose the best as per requirements. As this instrument is linked with the markets, they are a little risky. However, patience and perseverance help in creating wealth in the long term. Investors can create their accounts online on their selected broker portal.
You can withdraw any desired amount from mutual funds at any time with minimum charges levied.
One of the options available for retired citizens is online investing in the stock markets. There is no age bar, no constraint on investment and no binding of instrument tenure. However, this is the riskiest avenue as it is purely market-based. For investors with good risk-taking capacity, and good analytical thinking, trading through online investments proves to be a good option.
Although the markets provide multiple avenues, it is found that online investment is the best upcoming option, as it gives us a real-time growth result that can be tracked by self, can be invested at any stage and is transparent.