Retirement doesn’t mean the end of your earning period. In fact, it is an opportunity to double your earnings by allocating your hard-earned money in wise risk-free investment instruments that assure good returns. There are certain investment instruments that must belong to every retiree’s investment portfolio. These investments form the foundation or base of your investment portfolio and assure your financial well-being post-retirement. For instance, a fixed deposit is one such investment instrument that will give you a stable income throughout your life.

Here are the most popular investment options that every retirement investor should own: –

Fixed Deposits

Fixed deposit is one of the safest and most stable investment avenues offered by banks and non-banking financial companies (NBFCs). With assured returns, high-interest rates, periodic payout options, and flexible tenors (ranging from 7 days to 10 years), fixed deposit is the first choice of investment for any retiree.

Company FDs like the one from Bajaj Finance offer higher interest rates than bank FDs. The FD rates for senior citizens are further higher (than regular FD interest rates). Moreover, it is also accredited MAAA (stable) by ICRA and FAAA (stable) by CRISIL. This means you can have a steady source of income without having to worry about the safety of your investment.

Senior Citizens’ Saving Scheme (SCSS)

With the current interest rate of 8.7%, it is one of the best investment avenues for retirees offered by banks and post offices. The tenor of this scheme is 5 years, and the maximum investment limit is INR 15 Lakhs. This is a scheme from the Government of India and comes with assured returns, quarterly payouts and, sovereign guarantee. You can avail tax benefits on the interest earned under section 80C.

Any person of 60 years and above is eligible. People who have taken voluntary retirement can also avail this scheme if they invest within one month of receiving their retirement funds. You can also make premature withdrawals from SCSS before one year by paying a penalty of 1.5% of the total sum deposited.

Public Provident Fund

Public Provident Fund is a long term investment option. This investment locks your money for 15 years at an attractive interest rate, giving you tax-free returns. With current interest rate at 8%, PPF is one of the best investment options.

You can invest a maximum sum of INR 1.5 Lakhs in one financial year and get additional benefits like a loan, premature withdrawal, and account extension. Early withdrawals are only allowed in genuine cases like illness, higher education of children, the death of account holder, etc.

You can also get a loan against PF account after the third financial year. PPF is the safest and tax-free option for retirees if they are planning on long-term investments post-retirement.

Sovereign Gold Bond

Gold prices are increasing every day and investing in gold bonds without having to buy gold physically could be an intelligent investment decision. The Reserve Bank of India issues gold bonds at fixed gold weights. This means one unit of the gold bond is equal to one gram of gold with a fixed interest rate of 2.5% per annum.

Now, the rate of interest might be low, but with gold bonds, you can still earn good returns. Suppose you buy 10 grams of gold today at the rate of Rs 30,000, and after one year you find that the price of 10-gram gold has increased to Rs 32,000. This would mean that you earned 6.66 percent on initial invested amount plus 2.5% annual interest rate. So, the total return in one year is 9.16 percent, which isn’t bad.

Health Insurance

With medical costs escalating day-by-day, it is quite important to build a retirement corpus that caters to all your medical expenses. A standard health insurance product must cover all medical ailments and hospital expenses with limited exclusions. Also, the product must come with life-long renewability option.  Post-retirement, liquidating your savings for any unforeseen medical exigency should not be your only option.

All these investments are a must-have for any retiree. They are easy to manage. You don’t need any financial advisor or expert to help you invest and manage these investments. For instance, if you choose Bajaj Finance Fixed Deposit, you’ll have the ease and comfort of tracking and managing your FD account via Experia- your online fixed deposit account. Also, online FD calculator helps you to evaluate your returns and keep track of interest rates, maturity, returns, etc.