Best investment plan after retirement in india
Step-by-Step Approach
Retirement is one of those stages where everything changes. Your day-to-day routine. Your
stream of income. Your way of life. And how you perceive money.
With the regular monthly salary ceasing, what then?
That’s the question on everyone’s mind when they retire. And the response isn’t always easy.
But at InsureMile, we think it’s possible with proper planning and a few straightforward steps to
determine the best investment post-retirement in India for everyone.
Let’s go through the process of how to do that without making it rocket science.
Step 1: Know Your Monthly Needs
First of all, you must determine how much you’ll require each month to live happily. This must
cover:
Rent (if you’re not a home owner)
Food
Medical bills
Visits to your grandchildren or travel
Emergency fund
Fun (yes, retirement can be serene, not boring)
Put it all down on paper. Then add up how much you’ll require annually. This is your starting
point.
Why does this matter? Because any plan you choose must at least cover this amount every
year. If not, it’s not the best long term investment plan for you.
Step 2: Don’t Put All Your Money in One Place
It’s tempting to put all your savings in one fixed deposit or one retirement plan. Feels easy. But
it’s risky. What if interest rates fall? Or you need money urgently?
That’s why we recommend a combination. A small portion in secure fixed returns. A portion in
relatively unsafe but good returns. And a little amount for emergencies.
This combination provides balance.
Popular ones to divide money after retirement:
Senior Citizen Saving Scheme (SCSS)
Post Office Monthly Income Scheme
Fixed Deposits with high-rated banks
Monthly income mutual funds
Annuity Plans
National Pension Scheme (if ongoing)
Health insurance with investment-linked benefits
Selecting the optimal long term investing plan is a function of how comfortable you are with risk
and how old you are at the time you invest.
Step 3: Find Plans That Offer You Monthly or Quarterly Payments
After retirement, you require money on a regular basis. Not every ten years.
So, choose investment schemes that pay you money at regular intervals. SCSS is excellent for
it.
So is Post Office MIS. Annuity plans also offer monthly payments, although they keep your
money locked forever.
Here’s a sample:
Senior Citizen Saving Scheme (SCSS)
Tenure: 5 years
Interest rate: 8.2% (as of now)
Payout: Quarterly
Tax:
Interest is taxable
Maximum Investment: ₹15 lakh
You receive quarterly interest, secured returns, and government support. It’s one of the best
bets if security tops your list.
Step 4: Don’t Neglect Health-Associated Investment Options
Medical expenses can deplete your savings if you are not ready. Medical emergencies can
consume your FD within days.
That’s why InsureMile suggests adding investment options with a small cover of health. Many
insurance providers nowadays provide plans with small returns + hospital cover. They don’t offer
huge profits, but they prevent you from tapping into your long-term savings during a hospital
confinement.
Also, purchase a dedicated health insurance plan if you don’t already have one.
Step 5: Don’t Invest in High-Risk Investments Unless You Have Extra Money
That’s crucial. Most people attempt to invest in the stock market or schemes that give high
returns immediately after retirement.
If it succeeds, wonderful. But if it fails, your entire retirement fund can be hurt. We know it has
happened, and trust me, it isn’t a pretty sight.
So, do not take high risks if you have excess money (above your monthly expenses) after
retirement.
Stick to what you know. No juggling tricks.
Step 6: Think Long Term, Even in Retirement
Just because you’ve retired doesn’t mean you won’t live 20 or 30 more years. Life expectancy
has increased. You can live until 85 or even 90.
That’s why you still require long-term plans. Not simply short-term savings.
A combination of:
Monthly income
Emergency savings
Long-term secure returns
…keeps your money safe, growing, and ready.
Annuity plans, post office MIS, and long-term FDs enable you to do this.
Even low-risk mutual funds (such as conservative hybrid funds) can be included in your plan if
selected wisely.
Step 7: Be Aware of Tax
Taxes do not retire, unfortunately.
Some returns such as FD interest or SCSS returns are taxed. If you are in the tax slab, it will
take a bite from your earnings.
You might also consider Tax-Free Bonds, Public Provident Fund (if you have already begun
before age 60) or NPS (if permitted) to save taxes.
And, don’t overlook TDS rules. Banks deduct tax on interest if you fail to file Form 15H.
Every rupee counts post-retirement, so be aware of where it’s flowing.
Step 8: Take Advice, But Wisely
It’s alright to seek advice from family members or financial advisors. But always verify.
Read the fine print. Ask questions. Check who is advising you—are they making money off of it?
In InsureMile, we advise retirees in complete transparency. We don’t sell plans for commission.
We provide you with alternatives based on your actual needs.
Final Thoughts: What’s Really the Best Investment Plan After Retirement in India?
There’s no one-size-fits-all solution.
The ideal investment strategy after retirement in India is the one that:
Provides you with regular income
Protects your money
Meets your healthcare expenses
Sends you off to sleep at night with a smile on your face
Helps your savings grow (even a small amount) in the long run
For some, it may be SCSS. For others, it may be a pension scheme with assured monthly
income. And for a few, it may be mutual funds or NPS.
The good news is, you don’t have to do it yourself.
InsureMile does the understanding, comparing, and selecting for you without confusion.
Retirement should be serene—not cluttered with paperwork and guessing.
