Retirement is a golden period. You can do what you want or nothing at all. As the millennial and gen z generation popularly wants to – you can eat, sleep, party, Netflix and repeat. What a life! Which clearly proves, life begins at 60. At any age you retire, especially in the 60’s and beyond, you’re re-looking and living life from a different lens. 

When you slide off your rose tinted glasses, you do realize that retirement is good, but it’s not all roses and peaches.

It comes with its own set of challenges and pain points. From a financial perspective, it’s the notion of ensuring you are sustaining your finances or growing it. The fear of running out of money should not cloud or storm your sunshine times. In order to make sure your retirement days are more of a party, less of worries, we’ve narrowed down investment options for senior citizens. 

This ensures you have an income flow, and your money is growing passively. Let’s explore options by purpose.

1.Monthly cash flow 

If your aim is to ensure a constant inflow of income, month on month you can opt for instruments that remit a payout monthly. These are Systematic Withdrawal Plans (SWP) and Monthly Income Plans (MIP). Both of these are offered by mutual fund houses.Only capital gains are taxable under SWP options and any investor opting for these plans are well aware that the losses and capital appreciation are market dependent. Just that SWP option makes your monthly payout more tax efficient in the long term.

2. Growth oriented investment 

If you have a higher risk tolerance and want to opt for instruments that are growth oriented you can invest in equity based mutual funds. If you wish to opt for moderate risk and high liquidity instruments, opt for hybrid mutual funds. These are ideal for those who have a goal in mind and wish to keep their money within reach. 

3. Risk Averse instrument 

If your purpose is to leverage compound interest to your benefit and keep your capital protected, opt for traditional and government backed instruments such as fixed deposits, recurring deposits, PPF. These investment options are ideal for a risk averse investor. The income earned is taxable and some instruments come with definite lock-in period, providing minimal to low liquidity. 

4. Tax-Advantage savings 

If your purpose is to enjoy a tax advantage, opt for tax-free saving options. These include SCSS, National Savings Certificate. These are fixed tenure investments, with low risk, government security and fixed interest based income. Another tax-advantageous instrument is life insurance premium. This doubles up as a health care advantage as well as a wealth building and tax saving investment option.