Best investment plans for a senior citizen

Regardless of age, people always need to consider saving money for the future. It is so especially for senior citizens as age is a significant constraint of their life. So, finding an investment solution is crucial to lead a peaceful post-retirement life. Be it a salaried and self-employed person or a government employee, retirement is a non-negotiable factor in their life, and that is why everyone should go for investing. After all, money can bring mental peace and assist you in living your remaining years without any hindrance.

As an investor, all you want is a financial program that offers you a profitable return when investing capital for post-retirement life. But you have to select the best plan to get multiple benefits. If you are a pensioner, you might ignore the advantages, as you will get a regular cash flow with a pension. But the salaried or self-employed people must secure their life through a savings plan as they will never obtain any grant or a lump sum amount after their retirement. After all, you will step into a different life phase when you turn 60 as you transform yourself from an active professional to an old human. As a result, the priorities change, and you will need financial security to overcome all the obstacles that might come into your path. 

So, what are the senior citizen investment plans? Well, it is a type of financial security plan that offers a saving option for 60+ age people. It also provides the investors with a guaranteed income option for their post-retirement life. When they save money in these plans, they will obtain an assured return with interest whenever they want to acquire it. So, you can see that having a senior citizen investment portfolio is crucial to lead the golden years after retirement. The investors will discover multiple alternatives when they look for a program. All these have different benefits and drawbacks as some might give a regular monthly income with a decent interest rate while the others might not be the best option. So, if you are a retired person or own such people at your home, read this article as it will guide you to explore the investment options. This writing only aims to secure your post-retirement life so that you can leave peacefully. The best investment options for senior citizens are as follows.

Health insurance policies

It is one of the preferable and advantageous saving plans for senior citizens. Medical expenses tend to rise as you grow older. You might even have to face several emergencies that will require a handsome amount of capital. So, it is necessary to overcome such circumstances with a regular cash flow option. In that case, nothing is better than having a health insurance policy that will cover multiple health-related sections. These policies will offer you a co-pay clause and sub-limits. The co-pay clause suggests as an insurer or investor, you have to bear some initial costs when you face any emergency. After that, you will get the capital depending on your savings. But it is always advisable to pick a plan by considering the purchasing policy and its limits.

Key benefits:

  • Cover medical expenses like ambulance charges, medication fees, and others.
  • Help you to overcome health-related emergencies.
  • Pay for a specific limit in the initial stage.

Real estate investment trusts

REITs or Real Estate Investment Trusts are a vital and leading investment option for US citizens. It helps you to put your money in mortgages or equity positions in different types of properties. REIT will share 90% of their taxable revenue with you as part of dividends. Therefore, it is a beneficial investment plan for retired individuals as they will get higher dividends, and you can also sell the properties to earn money.

Key benefits:

  • You will get a higher profit as dividends.
  • It enables you to sell the property you invested in and earn money.

Bank fixed and recurring deposits.

One of the popular investment options for senior citizens is bank fixed and recurring deposits or FD and RD. As a retired person, you will get higher interest rates compared to the others if you invest your money in these. Besides, it has a unique benefit. There are no fixed interest rates, and as a result, you might get more interest payout depending on the bank you select. You can determine the deposit tenure at your convenience with monthly, quarterly, and annual payments. You can either opt for monthly, quarterly, or half-yearly interest payouts, referred to as cumulative payments, or can get compound interest after maturity, referred to as non-cumulative options. On top of all, you can withdraw the money before maturity if it is callable. But for senior citizens, it is always advisable to select the cumulative option as it will help them, getting interest payouts monthly, quarterly, and half-yearly.

Key benefits:

  • The interest is higher than regular investment rates.
  • A flexible loan tenure based on your requirement.
  • Can withdraw it anytime.
  • FD and RDs are free of market fluctuations, and therefore, they are secure.
  • Get both cumulative and non-cumulative options.
  • Calculate the returns by utilizing FD and RD calculators.

Dividend-paying stocks

Dividend-paying stock is a type of equity that offers comparatively higher returns and stability than several equity forms. Though there is risk involved with stocks, the dividend payers enable you to earn capital when the stock price escalates. They keep their promise and offer a complete commitment to the retirees. So, with the amalgamation of growth and earnings, these stocks can assist retired persons in getting a secure and peaceful life with guaranteed payments upon their investment.

Key benefits:

  • Get a higher interest payout.
  • Offer stability and security.
  • Earn more profits if the market grows.


An annuity is a beneficial investment program for retirees and an agreement between the investor and an insurance firm. Your investment contracts are between you and an insurance company. You will discover different forms of it, like fixed indexed, deferred, variable, and immediate annuities. They all incorporate an assured return. The amazing fact is that you can obtain higher interest rates in a fixed annuity program than a bank fixed deposit. You will get the guaranteed payout at the end if you invest your money in this investment plan. But before settling for an insurance company, look at the annuity charges and their features to avoid future hassles. 

Key benefits:

  • Higher interest rate than banks
  • Include different forms with multiple features

Senior citizen saving scheme

Each country has a senior citizen saving scheme with distinct features. SCSS is an outstanding investment option for retirees who want a long-term saving option that provides benefits with security. It not only offers a higher interest rate than bank deposits and other saving options, but the individuals also avail tax benefits from this. Besides, it has a flexible tenure also.

Key benefits:

  • It is a long-term scheme.
  • Offer a higher interest rate than a traditional investment program.
  • It is a secure program.
  • Provides tax benefits and has flexible loan terms.

Mutual funds

Mutual funds are an effective investment plan for retirees. You can gain high investment returns by spending in mutual funds. So, you can grow your wealth over time if you opt for this. Besides, it has two distinct advantages. You will not only acquire tax benefits but inflation-beating returns also. So, what is better than investing in a tax-saving mutual fund that also provides inflation-beating returns.

Key benefits:

  • It gives high investment returns.
  • It assists you in growing your wealth.
  • You can save tax and acquire inflation-beating returns.

Reverse mortgage 

Senior citizens can pledge their house as collateral with a bank. After that, they can opt for monthly payouts and get the returns depending on the current property value. In simple words, the bank owns the abode and can stay on it. The bank will also offer monthly returns to you. But after your death, the bank will begin the process of selling your home. They first offered it to your legal heirs, but if they cannot buy the house will be available for sale to outsiders. But if there is any discrepancy in the property value, the bank will pay the excess amount to your legal heirs. All these reasons determine reverse mortgage, which is a beneficial and secure investment program for retired people. 

Key benefits:

  • You will get a guaranteed monthly payout.
  • You can live in your abode till your and your wife’s death.
  • The bank will pay the excess amount to your heirs.

Preferred stock 

It is a stock-bond hybrid that gives a coupon over government bonds. Preferred stock is a passive income option for retirees and is also a valuable investment alternative that offers a high return as long as the market is high. But before settling for it, make a clear strategy to make sure of the goals and objectives. It will help you to minimize the risks associated with it.

Key benefits:

  • It is a passive incoming option.
  • It gives high investment returns.

Gold investment

Investing in gold for retirement is a beneficial solution for retired persons. Possessing gold in the form of jewelry or coin is advantageous as it offers security and high returns. Nowadays, many private banks sell gold coins. So, investing in proper gold is valuable as you can get guaranteed returns. Gold investments also occur on a stock exchange where gold is an underlying asset. Besides, you can also invest in gold mutual funds.

Key benefits:

  • Gold performs as a valuable asset.
  • Provide security with high returns.
  • Can sell them anytime to get a decent amount of capital.

Insurance premiums

Insurance is an effective investment plan for individuals as it has multifaceted advantages. It not only helps you to get tax benefits, but you will get a secured amount after its maturity. You will find multiple forms of insurance. As a result, you need to pick one depending on your requirement and convenience. Though some insurance companies might not give you a high-interest rate, you will get guaranteed returns in the end.

Key benefits:

  • Get tax benefits on the premiums you paid.
  • Help you to earn returns based on your investment plan.

Covered calls

As you might know, investing in dividend-paying stocks is risky. So, if you opt for this, you might consider writing on covered calls on dividend-paying stocks. It is a right to purchase or sell a stock at a particular price during a stipulated time to obtain a premium payment. It acts well when investors assume that their stock will not see higher or lower prices. So, by buying or selling the stock, the investors can earn capital without losing anything.

Key benefits:

  • Minimize the risk.
  • Sell your stock and get the returns without losing anything.

Alternative funds

They might cover options strategies, merger arbitrage, and convertible bonds. These policies can have similar characteristics as bonds, like having low overall volatility and a low association to stocks. 

Wrapping it up

So, the post-retirement period is not a fearful time if you make preparations early. For this, what is better than a secure and versatile investment plan? Therefore, you must consider the above alternatives and settle for the best policy to get multiple advantages. Besides, you can also opt for numerous investment programs. But remember that several options involve risks, and you have to prepare for your loss if something happens. Therefore, always take your decisions by contemplating the pros, cons, and dangers to avoid future complications. So, do your research and invest your hard-earned money in the best investment program to reap the benefits and get a secure future life. We hope this article will provide you with enough details and will perfectly guide you on where to invest in obtaining high returns by minimizing the risks.

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