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Retirement isn’t the end of life — it is the beginning. Now that you have finished with your responsibilities, you have all the time in the world to do things that you have always wanted to do, but never had the time.

Now that you have the time, do you have the money? Retirees live on limited means. They no longer work or generate a paycheck. Most people save up a modest sum for their retirement days, so that they can live a modest life. Will you be able to do all the things you want to do and still have enough money to live on? The money is finite and retirees have to learn to use the money judiciously. The money that you have saved up should be invested wisely to generate enough money to keep you in comfort for the rest of your life.

There are many ways for seniors to invest their money well. It should not only provide good returns but should also offer tax benefits. The good news is, the interest offered to seniors is usually a notch higher than for other people. But it is best to shop around and do some research to study the best retirement financial planning options for you.

Here are some great retirement financial planning tips.

Senior Citizens’ Saving Scheme (SCSS)

It is available only to senior citizens or early retirees. Early retirees can invest in SCSS if they do it within one month of receiving their retirement funds.


  • You can invest at your nearest post office.
  • It has a five-year tenure(can be extended by three years after maturity)
  • Current SCSS interest rate is 8.6 per cent per annum, and is a fixed rate.
  • Interest is taxable.
  • It is paid quarterly and has tax benefits.
  • It offers highest post-tax returns currently.
  • Upper investment limit is Rs 15 lakhs.
  • An individual can have more than one account.
  • It is a safe investment as it has sovereign guarantee.
  • Allows premature withdrawals.

Post Office Monthly Income Scheme (POMIS) Account


  • POMIS is a five-year investment.
  • Maximum investment allowed is Rs 9 lakh for joint accounts.
  • Under single ownership maximum limit is Rs 4.5 lakh.
  • The interest rate is currently around 7.8 per cent per annum, payable monthly.
  • Interest is fully taxable.
  • Interest can be directly credited to the savings account of the same post office.

Bank fixed deposits (FDs)


  • Can be short or long term.
  • Interest is taxable.
  • Currently interest is at 7.25 per cent per annum.
  • Tenures range from 1-10 years.
  • For tax benefits, five-year tax saving bank FD is an option.
  • Early withdrawal is not possible.

Mutual funds (MFs)

Equities deliver better interest and is the best way to make your money work for you. You can go through financial companies or through your bank wealth management branch to buy mutual funds. You can buy it on your own too if you have enough experience. The returns are much higher but there is always an element of risk in mutual funds.

Tax-free bonds

These are mostly infrastructure bonds that are issued by the government institutions like Railways, Roadways etc. They are tax free and you will earna yearly interest. The interest is taxable. But there is a lock in period.

Seniors should ask around, do some research and get proper advice before investing their hard-earned money. But if they invest wisely, they will have enough to live a good life.

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