How to Increase Your Income Post-Retirement?

Growing your income post-retirement can seem hard. After all, you neither have a regular income to routinely put into investment instruments, nor can you afford to make high-risk but high-yielding investments.

But there are ways to grow our returns. And they involve investing in low-risk but high-yielding financial instruments. Not sure what these financial instruments are or how you invest in them? Worry not. This blog covers three financial instruments that can help you increase your income post retirement. Let’s get right into it.

Three Ways to Grow Your Income Post-Retirement

Fixed deposits (FDs) are investment instruments that allow you to store your retirement income securely. You also get FD returns according to your deposit amount and the interest rate prescribed by the bank rather than the prevailing market conditions. Moreover, in case of senior citizens the FDs offer higher returns. 

Besides that, fixed deposits allow you to choose the deposit amount, tenure, and how you want to receive interest payouts. That’s right. Even after retirement, you can opt for a cumulative or non-cumulative fixed deposit based on your preferences. And you can even save taxes on your FDs.

Many banks offer easy online applications for opening a fixed deposit today. All you need to do is visit your banking partner’s website, submit the documents, and pay the deposit amount online. So, you can open a deposit of your choice instantly! 

Launched by the Indian Government, these schemes are an investment avenue tailor-made for people over 60. You can open an SCSS account and invest a lump sum in the scheme jointly with your spouse or individually, based on your preferences. Post-retirement, this account will provide access to a regular income like a pension and additional income tax benefits.

Keep in mind that the deposit limit in an SCSS account is Rs. 15 lakhs, and the tenure length is five years. That said, upon completion, you can extend the tenure for another three years. The best part? You can get interest rates of up to 7.6% on these deposit accounts.

This is a post-office-based investment scheme launched by the Government to offer safe and assured returns. You can buy these certificates in multiples of rupees 100 every month for five years and earn interest on the total amount you spend.

Keep in mind that the Government regulates the interest rates of these instruments, so they will likely change throughout your investment tenure.

That said, the interest earned is taxable. But you can earn tax exemptions on your investment amount as per Section 80C of the Income Tax Act. You can even get a loan against your NSC during your deposit period to tide over any financial urgencies you may face. This makes NSCs an excellent investment avenue to grow your funds post retirement.

Over to You

To grow your income post retirement, you must invest in low-risk but high-yield financial instruments like fixed deposits, SCSS, and NSCs.

Note that compared to all the above investment avenues, fixed deposits are the most flexible and secure and offer good returns on the investment amount. You can even use an FD calculator to determine your total earnings. Besides, starting the deposit is easy, given many banks offer simple online applications.

So, do your research, compare the deposit terms and choose an appropriate partner. This way you can income conveniently after retirement.