Skip Navigation
0 of 0 Displaying
 |   Displaying

No Results

    Guide to Retirement Investment Options in India

    Last Updated On 09-03-2023

    Investing money for your old age is one of the wisest decisions you can ever make. For starters, investment planning for retirement will provide you with the peace of mind that you are financially secure when you are no longer of working age. Additionally, it also allows you to live the type of lifestyle you have become accustomed to.

    Secure Your Retirement!

    OTP sent successfully

    Thank you for getting in touch with us. We will contact you shortly.

    Fortunately, several profitable retirement investment options make it easy to plan for your future. With both pre and post retirement options available, finding the best retirement investments just got a lot easier.

    Investment Options for Pre and Post Retirement in India

    Why You Should Plan for Retirement Investments Now

    Experts always recommend creating a retirement fund investment as early in your life as possible. Essentially this will allow your money to grow and develop into a large financial corpus over time. Investing for a longer period also enables you to benefit from the power of compounding interest.

    Before Retirement Investment Options

    1. Equity/Mutual Funds Pension Schemes

      When you’re considering investment planning for retirement, one of the more popular options is without a doubt mutual funds. For the most part, a mutual fund pension plan is considerably less risky as they’re managed by professional fund managers.
      Aimed at medium to long-term investors, retirement mutual funds in India enable you to select from equity mutual funds to create a portfolio that suits the type of financial corpus you want to create. Mutual fund pension schemes are often top choice as they don’t have the risk that goes along with a regular investment plan.
    2. Exchange Traded Funds (ETFs)

      One of the best retirement investments is the Exchange Traded Funds (ETFs). This type of investment is bought and sold on various stock exchanges which hold commodities such as stocks and bonds.
      While it is similar to a mutual fund in many regards, ETFs differ in one key aspect. Unlike a mutual fund, ETFs can easily be sold at any time during the original trading time frame. ETFs are also considerably more diverse.
    3. Real Estate and Assets

      Investing in real estate is also a firm favorite of people looking for a long-term investment. The more popular options include commercial properties and houses. During the investors working life, the property is rented out and income is generated.
      This income can then be re-invested to ensure that there will be a monthly income after retirement. Furthermore, the insured can continue to lease the property or simply sell it and live off the profits at any time before or after retirement. This type of investment is a secure savings plan for retirement. The success of the venture will largely depend on the type of property selected. It’s also not uncommon to have a portfolio that contains several properties.
    4. Bonds

      With a savings bond, the policyholder initially pays the principal amount (cost) of the bond to the insurer. The bond insurer then pays the holder the interest generated on the lump sum amount.
      This is done at regular intervals, while the principal amount is paid at the time of the bond’s maturity. An aspect that makes bonds very appealing is that there are extensive tax benefits at the time of investment.
    5. Public Provident Fund (PPF)

      A Public Provident Fund, also known simply as PPF, is a government-sponsored savings plan. Regarded by many as safe investments for retirement, these types of savings plans offer substantial capital appreciation which works well when you’re trying to create a long-term financial corpus.

    After Retirement Investment Options

    1. National Pension Scheme (NPS)

      Another favorite government-sponsored savings plan is the National Pension Scheme, more commonly referred to as NPS. Anyone within the age group 18-70 can join the NPS and policyholders will receive a minimum of 5.34% annual return per annum.
    2. Post Office Monthly Income Scheme (POMIS)

      As the name suggests, the Post Office Monthly Income Scheme, or POMIS, is an income scheme from the Post Office of India. An investor deposits the minimum investment of Rs 1,000.
      The maximum investment is usually about four and a half lakh for a single account. For a joint account, the investment option is nine lakhs. Furthermore, the savings plan runs for a period of five years. Generally, though, POMIS is not recommended for earners falling into the higher income tax bracket because the returns are taxable.
    3. Annuity

      For the most part, an annuity is geared toward generating a steady income during the retirement period. A policyholder will invest a lump sum and obtain a specified amount in the future.
    4. Bank Fixed Deposits

      For many people, bank fixed deposits are their first choice for after retirement investment. This type of investment enables the policyholder to deposit money for a fixed maturity period which can range from fifteen days to five years and above.
      Additionally, this type of savings plan allows the investor to earn a considerably higher interest rate than other more conventional savings account types. At the time of maturity, the investor will receive a return that is generally equal to the original investment as well as the interest earned over the policy period. This makes a bank fixed deposit one of the more lucrative plans for investment after retirement.

    How to Pick The Best Investment Options for Your Retirement

    There certainly is no shortage of retirement fund investment options to choose from. That said, here are a few pointers to keep in mind when you’re shortlisting potential options.

    1. Safe Investments for Retirement

      If you’d rather not rely on one of the government-backed options and you feel that the bank may not provide you with the return you want, safe investments are the better option. It’s important to consider what they’re offering to contribute to your financial portfolio.
      Smart investment plans have the potential to outpace inflation while at the same time growing in value. You can also decide whether you want to invest your money as a lump sum or a monthly premium. Safe investments for retirements are often the most lucrative form of building a hefty corpus. It’s crucial to only invest with reputable companies.
    2. Government-backed Schemes

      Government-backed schemes such as the Senior Savings Plan (SCSS), the National Pension Scheme (NPS) and the Employee Provident Fund (EPF) offer excellent capital appreciation as well as investment security. Depending on your current tax bracket, these plans could offer you extensive tax benefits and rebates.
      It’s also worth noting that the current SCSS interest rate is 7.,4% per annum and in some cases will offer much higher returns than those offered on fixed deposit savings account types. However, money needs to be deposited into your SCSS account as a single premium and has a limit of Rs 15 lakhs.
    3. Savings Plans

      When you’re considering savings plans such as bank fixed deposit options, it’s crucial to compare the expected interest rate. Additionally, compare the amount you will potentially receive at retirement to the amounts offered by other investment plans.
      Essentially the general charges to maintain the account will be considerably lower than those offered on an investment plan. While banks are generally the safer option, you want to create the most financially strong corpus with the safest risk factor.


    If you’re considering retirement investment options, it’s crucial to understand the differences between the various choices. That will help you make the most informed decisions about your financial future. Choosing the best investment option will ensure that you have a significant financial corpus to dip into when you eventually retire!

    Frequently Asked Questions

    Expand All Collapse All

    What is the safest way to set money aside for retirement?

    Collapsed Expanded

    For the most part, the safest way to set money aside for retirement is to invest in a pension fund. Alternatively, you can also consider a safe and credible investment plan. Banks also have options such as fixed savings accounts to consider. Be sure to check the pros and cons of each option as well as the reputation of the company or bank you’re considering.

    What is the safest retirement investment with high returns?

    Collapsed Expanded

    Investing in high-quality bonds and fixed annuities are often regarded as the safest investment for retirement planning. However, both bonds and annuities do come with their own risks. Generally, government bonds tend to be considerably more stable than corporate bonds. Always do an in-depth comparison of the two before you make your final choice.

    What are the rules for retirement investing?

    Collapsed Expanded

    Generally, there are seven golden rules to consider when you’re considering investment after retirement. These are listed as:

    1. Save at least 10% of your monthly income for retirement
    2. Be sure to increase your investment as your income grows
    3. Don’t be tempted to dip into your corpus before you retire
    4. Strive to save 20 times your annual expenses
    5. Don’t regard your retirement fund as a financial net for education and other related family expenses—strive to keep it for retirement only
    6. Withdraw 5% in the first few initial years, then slowly increase
    7. Allocate some money to stocks using this formula: 100 – age = the amount to allocate to stock investment


    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883

    Terms & conditions apply, Benefits stipulated are subject to premiums paid and policies in-force. For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale. Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details. Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time. The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.

    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website:, Email: or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.

    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.



    Read this Before Buying Immediate Annuity Plan | PNB MetLife


    Buying annuity? Read this before you take the plunge

    The retirement years can be a wonderful period in life when planned properly. You can sit back, relax, travel, rest and do whatever you want with a...

    Learn To Choose And Decide The Right Insurance Plan | PNB Metlife


    Picking a suitable Life Insurance plan | PNB MetLife Insurance

    Two major things to consider when considering the types of insurance available to you:...

    New Daily Life Retirement Planning | PNB Metlife


    Dreaming of your new daily life - retirement planning

    As you begin to think about your retirement planning, take the time to consider some important questions....

    Retirement Plans for your All Need | PNB MetLife


    Understanding Term Insurance Plan For Senior Citizens

    Life insurance is often misconceived as a product suitable only for the working population. This couldn’t be farther from the truth. As you can ded...

    Tips to Manage your Finances for your Dream Retirement Home | PNB MetLife


    Tips to manage your finances for your dream retirement home

    Building a retirement nest is easy if you use your pre-retirement years well. We share 5 tips.. It is every person’s dream to have a peaceful reti...

    Want to know more about how you can protect your family?

    See all our articles


    Collapsed Expanded

    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at or You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

    Site best viewed in following browsers
    Chrome 70+ , IE 11+, Firefox 76+, Safari 11+

    Get Trusted Advice Get Trusted Advice

    Ask khUshi

    Hi! I’m khUshi. How can I help you?