Being financially independent is everyone’s goal. This is especially important for senior citizens who may find themselves without a regular income. Without a steady source of income in one’s retirement years, there is a greater risk of mental health issues brought upon by stress.  

The best way to build a financially secure future is to make the right investments. Putting your hard-earned life savings in the right financial instruments can not only help you grow the money, but also secure a regular income. Here are five senior-friendly investment options that can help you in your financial journey:

1. Senior Citizen Saving Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) is a government-backed savings scheme launched in 2004 to help the elderly secure a regular flow of income. It has a tenure of 5 years, with a current interest rate of 7.4% where interest is paid on a quarterly basis. One of the biggest benefits of SCSS is that it allows premature withdrawals, so you can dip into this for emergencies. However, interest earned from this scheme is subject to tax.

2. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Another investment avenue to consider for regular income is the Pradhan Mantri Vaya Vandana Yojana. It is a retirement cum pension scheme that is available for all Indian citizens above the age of 60. It provides regular pension income, can be withdrawn partially under emergencies and you can also take a loan against it. However, it has a cap of  INR 15,00,000 of investment which restricts your monthly pension to INR 10,000 and it does not provide incremental incomes.

3. Senior Citizen Fixed Deposits

This is a popular investment avenue for many senior citizens since it is considered a safe investment option. Senior citizens usually get a higher rate of return on fixed deposits. Interest income can be generated regularly. However, unless you invest in tax-savings deposits which have a lock-in period of 5 years, the interest is subject to tax.

4. National Pension Scheme

If you want growth-oriented schemes to invest in, then the National Pension Scheme or NPS is a good option to consider. Senior citizens up to the age of 70 can invest in NPS. For more growth, you can choose to invest in the equity-oriented NPS. However, NPS has a lock-in period of 3 years and returns are not assured because of market-linked investments.

5. Debt-Oriented Mutual Funds

Debt mutual funds can be a great way to increase your wealth in your senior years. They are relatively less risky than equity-oriented mutual funds, but provide higher returns than other fixed income instruments. They help in beating inflation, even though the gains from debt mutual funds are taxable.


The best way to build a regular income and grow your corpus is to have a diversified portfolio. We at Alserv, a leading elder care service in Chennai, Coimbatore, Kochi and other cities, suggest that you invest in different schemes to be financially secure.