Where to Invest After Retirement
In ULIPs, the investment risk in the investment portfolio is borne by the policyholderU.
The Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year.
During your earning years, you have worked hard and built a life for yourself and your family. A life full of dreams, achievements and happiness.
As you retire, you may have a new set of dreams that you would want to fulfil, such as setting out to experience new things in life or spending quality time with your loved ones. You may also have some responsibilities that you would want to take care of, such as your child’s wedding or higher education, or financial security of your spouse. It is important to ensure that you invest in the right plan, one that can help you take care of your post-retirement dreams and responsibilities.
There are various plans for investment after retirement that can cater to your various financial needs. Let us understand this in detail.
What are the best investment plans for your retirement?
Annuity plans
You may have post-retirement dreams such as traveling, pursuing a hobby, starting a new venture, and more. Annuity plans provide you with a guaranteed1 regular income that can help you fulfil your post-retirement dreams.
ICICI Pru Guaranteed Pension Plan is one such annuity plan that provides you a regular guaranteed1 income for life. You can choose to receive the income immediately after the purchase of the plan, or at a later age. The plan also provides an option for guaranteed1 regular income for your spouse in case something happens to you. The premiums paid towards the plan are allowed as deduction up to ₹ 1.5 lakh per annum under Section 80C^ of The Income Tax Act, 1961
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Guaranteed3 income plans
Guaranteed3 income plans provide a guaranteed3 income after a duration chosen by you. You can consider investing in a guaranteed3 income plan to take care of your financial responsibilities.
ICICI Pru Guaranteed Income For Tomorrow is one such plan that can be a suitable investment for your retirement. It provides you with guaranteed3 returns that are decided at the time of the purchase of the plan. You can choose to receive this amount starting as early as the following year from the purchase of the plan.
ICICI Pru Guaranteed Income For Tomorrow also provides a life cover4 that secures your loved ones financially in case of an unfortunate event. You can choose to pay premiums towards the plan monthly, half-yearly, yearly or all at once as per your convenience. The plan also offers tax benefits^ as below:
- The premiums paid towards the plan are allowed as deduction up to ₹ 1.5 lakh per annum under Section 80C^ of The Income Tax Act, 1961
- · The payouts received from the plan are also tax free under Section 10(10D)^
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ULIPs
You may want to invest for your child’s wedding or for the future financial needs of your spouse. You can consider investing in a Unit-Linked Insurance Plan (ULIP) that provides you with market-linked returns. You can choose to invest in equity, debt or balanced funds as per your choice.
ICICI Pru Signature is one such ULIP that provides multiple fund options to choose from. You can also switch between the funds without any additional cost. The plan offers a life cover that can secure your loved ones in case of an unfortunate event. You can choose to pay the premiums monthly, half-yearly, yearly or all at once as per your convenience. The plan also offers tax benefits^ as below:
- The premiums paid towards the plan are allowed as deduction up to ₹ 1.5 lakh per annum under Section 80C^ of The Income Tax Act, 1961
- The payouts received from the plan are also tax free under Section 10(10D)^
Senior citizen saving scheme
The Senior Citizen Saving Scheme (SCSS) is specially designed for individuals who are 60 and above, which makes it a suitable after retirement investment plan. It offers a regular income till maturity. This government-backed scheme can be opened at post offices or authorized banks. Investments in SCSS are also eligible for tax^ deductions under Section 80C of The Income Tax Act, 1961.
Bank fixed deposits
Bank Fixed Deposits (FD) are another future investment plan after retirement that you can consider. They allow you to deposit a lump sum with a bank for a fixed tenure. Bank FDs offer a guaranteed interest over time. Since the returns are not market-linked, FDs are suitable for retired individuals. FDs with a tenure of five years or more also qualify for tax^ deductions under Section 80C of The Income Tax Act, 1961, up to the prescribed limit of ₹ 1.5 lakh per year.
Public provident fund
Public Provident Fund (PPF) is a long-term, government-backed savings scheme. It has a lock-in period of 15 years that you can keep extending in blocks of 5 years later. Contributions made to PPF are eligible for tax^ deductions under Section 80C of The Income Tax Act, 1961, up to ₹ 1.5 lakh per year. The interest earned and the maturity amount are not taxable. The scheme offers assured returns with no market fluctuations. This makes PPF an attractive after retirement investment plan, but the retired individuals should account for the lock-in period and plan accordingly.
Health insurance plans
Health insurance plans give financial protection against medical expenses arising from illnesses and injuries. They cover hospitalization bills, preventive care and more. In addition to financial security, health insurance also comes with tax^ benefits under Section 80D of The Income Tax Act, 1961. With the rising costs of medical care, having a health insurance is one of the best investment plans after retirement in India that you can consider.
Systematic investment plan (SIP)
A Systematic Investment Plan (SIP) is a way that allows you to invest in mutual funds and gradually build wealth over time. SIPs allow you to invest a fixed amount at regular intervals, such as weekly, monthly or quarterly, as per your convenience. SIPs can be started in different types of mutual fund schemes, such as equity, debt or hybrid options, making them suitable for a wide range of after retirement goals.
Why is it important to plan your retirement early?
It is equally important to plan for retirement from a young age. Below are some reasons:
Cover medical expenses
Healthcare costs tend to rise as you age. After retirement, you may no longer have the financial protection of employer-sponsored health insurance. Starting your retirement planning early helps you build a financial support to cover your medical bills in retirement.
Prepare for a longer life
Life expectancy is increasing, and you may live longer, which makes it essential to prepare for your future financial needs. Starting early ensures you have enough time to accumulate wealth and create a retirement fund that supports your lifestyle needs in your golden years.
Save for the children and family
Retirement planning also gives you room to support your family. Beginning early helps reduce the financial burden later in life, so you can support your spouse, fund your grand children’s education and their wedding, without compromising your retirement comfort.
Beat inflation
Early retirement planning gives your investments the time and opportunity to grow and stay ahead of inflation. The earlier you start, the better your financial situation can be in the future.
Conclusion
Investing after retirement is important to meet your post-retirement goals. You can choose to invest in a plan that provides you market-linked returns or guaranteed3 returns, as per your goal and requirements. Choose the right plan that suits your needs and start investing.
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COMP/DOC/Dec/2025/2412/1710
FAQs - Investment options for retirement
1. How do I choose the right investment options for retirement based on my age?
You can conduct a thorough assessment and evaluation of all retirement options and check the risk they carry. The younger you are, the more risk you can take and vice versa. You can carry out your research online, read books or speak to a financial advisor.
2. Are there any flexible investment options for retirement with liquidity?
Yes, there are several options such as endowment plans, Unit Linked Insurance Plans (ULIPs)U and certain annuity plans that offer flexibility and liquidity in retirement in addition to financial security.
3. What are some safe investment options for retirement during market volatility?
Guaranteed-return options like bank FDs, PPF, SCSS and endowment plans may be suitable investment options for safety since they are not directly linked to market performance.
4. How often should I review my investment options for retirement?
You can review your retirement portfolio every few years, especially after major life milestones such as marriage or divorce, the birth of a child or when nearing retirement age. A financial advisor can also help you decide when to review or make adjustments to your retirement investments.
5. Can I rely only on government-backed schemes as investment options for retirement?
While government-backed schemes can be safe and reliable, relying solely on them may limit your gains. It may be better to keep a diversified portfolio with different types of investments to balance growth and stability.
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