The biggest problem after retirement is the decrease in income, while expenses continue. While working, you get a monthly salary, but after retirement, if there is no stable source of income, the financial pressure increases. In such a situation, passive income can become an excellent solution.
Passive income means income that does not require repeated efforts and money keeps coming every month or at a specific time. Let’s find out which 5 methods of passive income are the most reliable for regular income after retirement.
First, we need to understand what passive income is?
Passive income refers to income that you receive daily or repeatedly without working. Initially, some planning or investment is required, but after that, the income starts coming automatically. Income like rent, interest from government schemes, dividends or pensions is considered very important for financial security after retirement.
Senior Citizen Savings Scheme (SCSS)
SCSS is one of the safest and most reliable investment options for retired individuals. It is a fully government-guaranteed scheme that provides regular returns on investment.
Interest rate: Around 8.2% (current rate).
Investment limit: Up to a maximum of Rs 30 lakhs.
Tenure: 5 years.
The biggest attraction of this scheme is that the interest is credited directly to your account every quarter. It also offers tax benefits.
Renting out property
If you have a flat, house or shop, renting it out can become a strong source of regular income after retirement.
Advantages: After finding a tenant, you will receive a fixed monthly payment.
Note: Get the lease agreement in writing and ensure that the tenant has a complete KYC.
Risks: Occasional delays in getting rent or damage to the property.
This method proves to be quite stable and profitable in the long run.
Dividend-paying stocks or mutual funds
If you are willing to take a little risk, dividend-paying stocks and mutual funds can generate good passive income.
Advantages: Capital growth with annual dividends.
Tip: Choose funds with a strong track record.
This option is best for those who want to grow their money even after retirement.
Post Office Monthly Income Scheme (MIS)
Post Office MIS is suitable for those who do not want to take risks and want a fixed monthly income.
Investment limit: 9 lakhs (single), 15 lakhs (joint).
Interest rate: Around 7.4%.
Tenure: 5 years.
In this scheme, the money is safe and interest is credited to your account every month.
Annuity Plan or Pension Scheme
If you want to get a monthly pension-like income after retirement, an annuity plan is a good option. In this plan, you deposit a lump sum and get a fixed income for life. The amount of income depends on your investment and the plan you choose.