What should seniors invest in

However, only senior citizens above 60 years can invest in the plan on making a lump-sum investment. The pension receivable under the scheme ranges from Rs 1, to Rs 10, per month depending on the amount you have invested. To avail of the scheme, you will have to make a minimum investment of Rs 1.

However, the scheme has been modified and extended up to 31 March Keep in mind that investment made towards this scheme will not be eligible for tax deductions under Section 80C. Moreover, it offers an interest rate comparable with the senior citizen savings scheme SCSS. SCSS is an excellent investment option for senior citizens looking for long-term saving schemes which offer security with additional benefits.

You can avail of the scheme from post offices and recognised banks around the country. Not only is the rate of interest offered on this scheme comparatively higher than that of the regular savings and fixed deposit bank accounts, but you also get tax benefits up to Rs 1. SCSS has a maturity period of five years with an extension of three years. It offers an interest rate of 7. You have SCSS offering one of the highest interest rates among fixed-income investments.

Moreover, you can invest a maximum amount of Rs 15 lakhs. You must provide your nominee when opening the SCSS account. There are various types of investments through which senior citizens can orient their portfolios towards growth and wealth accumulation. Here are some of the best investments through which retirees and pensioners can enjoy inflation-beating returns:. Investing in mutual funds is by far the best decision you can make to build wealth over some time.

Start investing in mutual funds and enjoy the twin benefits of — Inflation-beating returns and tax savings. This keeps a record of which companies have increased their dividends every year for at least 25 years.

So now that you understand the benefits of investing in stocks as a senior, the next question you're probably asking is: How much should I invest in stocks? Everyone has to come up with their own answer to that based on their risk tolerance and retirement timeline, but the general rule of thumb is to invest minus your age in stocks. The old rule used to be to invest minus your age in stocks, but as people live longer, they need more money for retirement.

Keeping more money in stocks for longer increases their chances of having enough saved. You can use the " minus your age" rule as a starting point, but know that the best asset allocation for you may be different than this. If you don't plan to retire for many years yet, you may be able to keep more of your money in stocks because you'll have time to recover from a market crash before you need your savings. So consider your individual situation when deciding how to allocate your portfolio.

Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Investing Best Accounts. Stock Market Basics. Stock Market. Industries to Invest In. Getting Started. Planning for Retirement. Table of Contents Expand. Immediate Fixed Annuities. Systematic Withdrawals. Buy Bonds. Dividend-Paying Stocks. Home Equity. Income-Producing Property. Savings Accounts and CDs.

Part-Time Employment. The Bottom Line. Key Takeaways Creating a reliable, low-risk income stream is a high priority for many retirees.

Many income-producing investments can supplement Social Security and retirement plans while keeping risk in check. Fixed annuities can provide you a guaranteed income stream, but they are subject to the risk of inflation, which could impact the amount.

Getting a part-time or gig job that you enjoy can be a good way to supplement retirement income without sacrificing all of your free time. You can mix and match these investments to suit your income needs and risk tolerance. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.

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Investopedia does not include all offers available in the marketplace. Related Articles. Partner Links. An annuity ladder is an investment strategy that entails the purchase of immediate annuities over a period of years to provide guaranteed income.

How Does a Pension Plan Work? A pension plan is an employee benefit that commits the employer to make regular payments to the employee in retirement. Annuitization Phase The annuitization phase of an annuity refers to the period when an annuitant starts to receive payments from his or her investment in the annuity.

What Is a Hybrid Annuity? A hybrid annuity is a retirement income investment that allows investors to split their funds between fixed-rate and variable-rate components. Secondary Market Annuity SMA A secondary market annuity SMA is a transaction in which the present owner of an income annuity trades future income payments for a lump-sum payment. Years Certain Annuity A years certain annuity is a retirement income product that pays a continuous periodic income, generally monthly, for a specified number of years.