HOW TO EARN AFTER YOUR RETIRE

How to earn after your retire
Senior citizens, today, can choose from a variety of investment options.

Since security is important at this stage of one's life, don't take unnecessary risks with your life’s earnings. We profile some investment options that will give any retired person peace of mind as well as regular returns.



Fixed Income
Debt instruments and fixed income schemes come with guaranteed returns and low risk.

Senior Citizen Savings Scheme or Post Office monthly income schemes give you a return rate of 8-9%. The flip side here is that your money gets locked for three years.

While post office schemes give you income every month, returns from senior citizen savings schemes come every four months.

You can invest a maximum of Rs 15 lakh in the scheme. But if you withdraw after one year you lose 1.5-5% of your total investment. Both the principal and the interest are taxable in these schemes. Apart from high safety savings instruments, investing in fixed-income instruments is also a good idea.

Fixed Deposits
 
While you can’t withdraw money from a fixed deposit, the monthly income plan of the FDs poses no such problem. The rate of interest on the senior citizen schemes is 8-9%, and on FDs it is 7-7.5%.

You can withdraw money from FDs after three months. If you stay invested in postal savings scheme for six years, you get 10% bonus. Annuities could be another investment option.

National Savings Certificates
If you are looking for tax-free investments, NSC could be your ticket. They give an 8% rate of return. You have to make a one-time investment for six years.

Public Provident Funds
PPF is another tax saving investment option. You can invest up to Rs 70,000 per annum in PPF (5-year lock-in period).

Even after five years you can withdraw only a part of your investment.

Quick tips
According to experts, if you are going for debt or fixed-income instruments, don’t choose only one medium of investment; spread your money across different instruments.

If your savings for retirement are not enough, you should invest some portion in equity also. Debt schemes of mutual funds or MIP that invest 20% in equity could be a less risky option.