Top 4 Best Investment Options You Should Consider After Retirement: Money Matters

Retirement is a time to slow down and enjoy life, but it also means making your money work wisely. With your working years behind you, it’s important to find safe and sensible ways to grow or protect your savings. To learn more about the best investment options after retirement, we spoke with Ishkaran Chhabra, Founding Partner and Chief Investment Counsellor at Centricity WealthTech, for the expert insights:

Top 4 Investment Options After Retirement

1. Low Risk Fixed Income And Savings Schemes

i) Fixed Deposits (FDs) – Ishkaran Chhabra says, “Vault-like safety with predictable monthly or quarterly income. Many banks and NBFCs in India offer slightly higher interest rates for senior women (typically 7–8%).”

ii) Public Provident Fund (PPF) – This 15-year savings scheme, backed by the government, offers a steady 7.1% interest rate. Your investment, the interest earned, and the final amount you get at maturity are all completely tax-free.

iii) Bonds – Diversified Bonds issued by the Government, States, and Corporations with fixed cash flows.

2. Structured Income And Pension Plans

i) National Pension Scheme (NPS) – Ishkaran Chhabra shared, “Mixes equity, bonds, and government securities. Offers extra ₹50,000 deduction (80CCD(1B)), with up to 60 % lump sum at 60 and the rest as annuity.”

ii) Employees’ Provident Fund (EPF) – If you were in salaried employment, EPF grows tax-free and offers a monthly pension post retirement.

iii) Guaranteed Annuities/ Capital Guaranteed Plans – These insurance-based plans guarantee you’ll get your money back, while also giving you a chance to earn a bit more depending on how the market performs.

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3. Market-Linked Growth Investments

i) Mutual Funds (via SIPs) – “Balance risk and returns by regularly investing small amounts. Effective even with modest sums and led by professional management,” shared Ishkaran Chhabra.

ii) Equity & Target date funds (globally) – As you get older, it’s wise to gradually move your investments into safer, more stable options. This approach works well for those who prefer a low-risk strategy.

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4. Diversifiers And Inflation Hedges

i) Gold/ Gold ETFs/ Sovereign Gold Bonds (SGBs) – Investing in any of these three is a good way to protect your money from rising prices while still keeping it easy to access when you need it.

ii) REITs – Real Estate Investment Trusts (REITs) let you earn regular income from property. In India, they usually offer returns of around 8 to 10%.

With the right guidance and a plan that suits your lifestyle, you can make your retirement years financially comfortable and stress-free. Consult a financial advisor to make informed decisions.

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