Having a monthly income helps in establishing stability in life as it ensures that you will be able to afford your expenses and maintain your standard of living. However once an individual retires the steady flow of ‘salaried’ income stops. Even as your income stops, your expenses may continue to exist thus ensuring that you have a stable source of income post-retirement becomes crucial for retirees.

While most people save enough to never have to work during their retirement life there can be some circumstances in which an individual is left with insufficient funds or does not have a steady source of income. This can result in high levels of stress and anxiety.

Here are some investments which can help you in earning a stable income after retirement:

Rental Income

While builders and developers often rent out entire buildings to make money, retirees can also consider investing in property for the purpose of putting it on rent. Metropolitan cities like Delhi, Mumbai or Chennai often see heavy footfalls as people from all around the country come there to study or work. Retirees can consider purchasing residential accommodations for the purpose of putting them on rent which in turn can help them in having a stable source of income.

Systematic Withdrawal Plan

Systematic Withdrawal Plans are a form of investment which allow you to withdraw money from the investments you have made. SWPs allow investors to withdraw a fixed amount of money on a monthly basis according to their needs. Mutual fund investors get an option to invest in SWP wherein they can set an amount which will be withdrawn on a monthly, bi-monthly, half-yearly or yearly basis. It helps the investor get a monthly income while continuing to gain interest on their investment.

Immediate Annuities

Immediate Annuity is a type of pension plan where the investor invests money in a lump sum and receives it in a systematic form at a predetermined frequency such as monthly pension, quarterly pension, half-yearly pension or yearly pension etc. This allows the investor to receive money in an organised manner while earning interest on the invested amount. Immediate annuities allow financial stability by providing a source of income to investors post-retirement.

Senior Citizens Savings Scheme (SCSS)

Senior Citizens Savings Scheme allows senior citizens above the legal age of retirement i.e. 60 years to invest up to Rs. 30 lakhs. The scheme allows an interest of 8.2 per cent per annum which is compounded and paid quarterly. This interest helps provide investors with a stable source of money.

Pension Schemes 

Many government pension schemes can also help ensure a stable source of income post-retirement. Some of the well-known schemes are Atal Pension Yojana, the National Pension System, and the Public Provident Fund, etc. These schemes ensure financial stability by providing interest on the amount of money you have invested in them prior to your retirement. These schemes help senior citizens get pensions in the form of annuities.