As people reach their golden years, they often consider their retirement plans and how to make the most of their time. Many seniors prioritise traveling, but for those without a reliable income, financing these trips can be daunting. This is where investing comes into play, and senior citizens have a range of investment options available to fund their travel goals.

According to a survey conducted by Thomas Cook India, nearly 70 per cent of senior citizens in India are using their retirement funds to finance their travel goals. The survey also found that the most popular destinations for senior travellers in India are domestic locations such as Kerala, Rajasthan, and Goa, as well as international destinations, such as Singapore, Dubai, and places across Europe.

Additionally, a report by the Ministry of Tourism revealed that the number of senior citizens traveling within India has been steadily increasing in recent years, with a growth rate of 22 per cent in 2019.

This indicates that more and more seniors are prioritising travel as a way to maximise their retirement years.

When it comes to investing for travel, experts recommend that seniors consider low-risk options, such as fixed deposits, bonds, or mutual funds with a long-term horizon. This can help them earn a steady income while also preserving their capital for their travel goals.

Here are four ways senior citizens can try to maximize their retirement fund to fulfil their travel goals:

Fixed Deposits: This is a safe bet for seniors, and they can they can choose fixed deposits (FDs) as a secure investment option due to their reliability and stability.

“These are savings accounts that offer a fixed rate of interest for a specified period, making them an excellent choice for risk-averse seniors who seek a guaranteed return on their investment. Several Indian banks provide specialised FD plans for senior citizens, with longer tenures and higher interest rates than standard fixed deposits,” says AK Narayan, CEO, AK Narayan Associates, a financial planning firm.

Mutual Funds: This is a high-reward, high-risk option. Seniors keen to finance their travel goals can also consider mutual funds as a viable investment option.

Mutual funds collect money from multiple investors and invest in various securities, including stocks, bonds, and money market instruments. Though they offer higher returns than FDs, they also involve greater risks. It’s essential for seniors to seek advice from a financial advisor and conduct thorough research on mutual funds before investing, ensuring that they make informed decisions that align with their financial objectives and risk appetite.

Government Schemes: These are another safe and secure option for seniors. One such scheme is the Senior Citizens Savings Scheme (SCSS), which provides a rate of interest of 8.2 per cent and a maximum investment limit of Rs 30 lakh. Another scheme is the Pradhan Mantri Vaya Vandana Yojana (PMVVY), which guarantees a return of 7.4 per cent per annum, with a maximum investment limit of

Rs 15 lakh per senior citizen. These schemes are ideal for seniors who prioritise safety and security when investing in their travel goals.

Making Informed Investment Decisions: To achieve their travel goals, seniors have various investment options available. However, it is crucial for them to make prudent investment choices by seeking the advice of a financial consultant and conducting thorough research on the available investment options. This ensures that they align their choices with their financial goals and risk tolerance. Seniors must also factor in variables, such as taxes and inflation, which can affect their investment returns.

Senior citizens can use investing as an effective method to accomplish their travel aspirations. By carefully selecting the appropriate investment option and taking well-informed investment decisions, seniors can guarantee that they have sufficient funds to travel and relish their retirement to the maximum extent.