What Should You Do With Retirement Money?

What Can You Do With Your Retirement Money?

FAQs About What to Do With Retirement Money

Which are low-risk investment options? up-arrow

Suppose you want to avoid taking the risk of market fluctuations. In that case, you can put your money in senior citizen fixed deposits, Post Office Monthly Income Scheme, Pradhan Mantri Vaya Vandana Yojana, and Senior Citizen Savings Scheme. All these will help you earn a low but steady interest on investment. On the flip side, if you are risk-tolerant, you can invest in mutual funds to generate a higher return. 

What is a Senior Citizen Savings Scheme? up-arrow

Senior Citizen Savings Scheme or SCSS is a savings instrument sponsored by the government for senior citizens. Individuals above the age of 60 can be beneficiaries of the scheme to secure a steady source of income after retirement. The minimum and maximum amounts you can keep in your fund are, respectively, ₹ 1,000 and ₹ 15 Lakhs. Furthermore, you need to stay invested for a lock-in period of up to 5 years.

What does the 4% rule for retirement say? up-arrow

It is a principle of using the investment amount after retirement. It states that you should limit your withdrawal from total investment by up to 4% in the first year of retirement. After this, you can change the withdrawal limit according to the economic inflation. 

What are the essential expenses after retirement? up-arrow

The essential expenses you will have to pay in a month after retirement include household expenditures (rent, maintenance, etc.), living expenses, transportation costs, medical/health, and family care. You need to make your monthly budget expenditure wisely.