7 Best Investment Options for Retirement in India

After a certain age, you have to stop working, and this is when your retirement starts. This is the time when you reap the benefits of the investments that have been made throughout your life. It is also understood that post-retirement, you will get a corpus from your organization. This is usually in the form of a provident fund and gratuity from your organization. Now, the smart move would be to invest this money in some of the investment plans so that you can meet the expenses in old age.

The cash flows are expected to dry out in old age, so it becomes pretty important to invest the lump sum amount you receive after retirement. Even if you get a monthly pension, that might not be enough to meet the expenses after a certain age. So, what are the investment options available after your retirement? We have this answer to this question and shared some of the pointers in the section below. Check them out now.

Top Investment Options for Retirement


Here is a list of investment options you can consider after retirement. These are safe options and carry no or minimal risk with them. So, if you make such choices, you can reduce the risk of losing money. Let us now check out these investment options available.

1. Deposits

The first and the most popular option for people is fixed deposits. You can make these deposits in the bank or the post office. In addition, while selecting the interest pay-out, you can select the option for monthly interest pay-out. This will enable you to get interest monthly, just like your pension, and you can spend the money on whatever you like. Another advantage of deposits is that they can help you maintain liquidity. You can quickly liquidate them in an emergency and receive money almost instantly in your account. If you understand technology, you can also opt for digital services from the bank.

2. Monthly Income Schemes

There are many monthly schemes offered by investment management companies. You can invest in these schemes from a young age and start reaping the benefits of these schemes after you retire. These are more like super annuity plans where you get money regularly after a certain age. These plans have recently gained popularity because they offer a fixed return without risk. Moreover, with the expected age rising, such plans are always good for your financial health. Some of these plans also come with exit options; you can check them before getting into any such plan.

3. Real Estate

If you don’t mind a little compromise on liquidity, then another good option for you is that of real estate. You can opt for commercial properties or shops which offer you higher rents. This option is more viable if you are still in your 30s and 40s. These real estate options can offer a good return through rent and capital gains. Over the years, you can sell the property to invest in other assets. We highly recommend real estate investment if you want a steady income stream in your old age.

4. Gold

Many people prefer investing in gold, and you can also consider the same. There has never been a time when the price of this commodity has fallen. It negatively correlates with the market, and even when the markets are falling, the gold will not fall. Gold consolidates itself even during the recession. So, you can always choose gold in physical or digital form. However, if you invest in gold in physical form, please ensure you have a place to keep them safe. Moreover, consider the purity, tax and making charges when purchasing the gold. These can eat up your gains.

5. Mutual Funds

The next option that we are going to talk about is mutual funds. If you start investing in mutual funds at a young age, this can reap great returns for you. The returns can be well over 15%. Mutual funds are available in different combinations. You can choose a combination of tax-saving, balanced and low-risk mutual funds. If you are relatively young, you can also opt for high-yield mutual funds, which invest in some of the risky assets. These mutual funds can help you reach over Rs 1 crore corpus in 30 years of your service.

6. Endowment Plans

How about an asset offering protection and returns? If you would like to explore any such option, then you can consider endowment plans. These plans work as insurance, and at their maturity period, you get returns from these plans. These returns are somewhat equal to the market returns. Please note that the endowment plans can’t replace the term insurance, but they can offer you some level of protection. Some regular income endowment plans available will give you fixed returns at a regular frequency.

7. Tax-Free Options

We all pay a lot of tax, and in such a case, we love to explore options that can help us save some tax. These options are available in the form of infrastructure bonds. The bonds are made available by the government and have a lock-in period. However, the returns from the bonds are not taxable.

Final Take

These are some of the options available to you after retirement. We advise diversifying your investments and not putting all your eggs in one basket. This will further reduce the risk on any of your investments. Usually, a mix of investments is considered healthy for the portfolio, and you should follow the same. In addition, you can keep some liquid cash with you, as this is a critical component during an emergency. We strongly advise against investing in stocks or any other risky asset which can lead to losses. If you still have any questions about the investment options for retirement, please feel free to connect with us via the comments section. We hope this will help you plan your life.