HomeBlogUncategorizedWays to End Up with More Money After Retirement

Ways to End Up with More Money After Retirement

We often portray retirement as a period of leisure and relaxation. But in reality, it can be a challenging experience. First, you have to learn to live without a regular paycheck, which can feel like the end of the world if you did not do your homework before retiring. However, there is no need to panic because there are methods to earn extra money after retirement without giving up your time.

Ways To Earn Money After Retirement

  • P2P Lending

P2P lending can provide good returns for you as a money lender with some risk tolerance and free cash. Compared to other types of passive income, such as real estate, P2P lending takes less capital, to begin with. While the stock market can provide handsome returns, there is always a risk of a bear market. Amid a bear market, you might have to wait years to regain your losses.

With peer-to-peer lending platforms like LenDenClub, you can get annual returns of up to 10–12%* p.a. Just Invest and wait for your tenure to end, that’s it!

  • Senior Citizen Savings Scheme (SCSS)

Indian retirees search for programs that provide the best security and a consistent income. Many believe that the safest senior citizen investment plans are those that a sovereign guarantee supports. People view those plans that the Indian Government supports favorably.

The minimum investment for the scheme is INR 1,000. You can invest a maximum of INR 1.5 lakh. The scheme’s lock-in period is five years. Investment in the scheme is tax-exempt under section 80C of the Income Tax Act, 1961. However, you attract tax on the interest income. If the interest amount exceeds INR 50,000, you attract TDS.

The Government of India has been selling the Senior Citizen Saving Scheme (SCSS) since August 2004. It is an entirely risk-free debt product. It provides the security of an income for the investment duration and is only for people aged above 60 years.

  • Pradhan Mantri Vaya Vandana Yojana (PMVVY)

The government started the Pradhan Mantri Vaya Vandana Yojana, available to all older citizens, in 2017. The Pradhan Mantri Vaya Vandana Yojana is a retirement and pension program. The Life Insurance Corporation (LIC) runs and manages the scheme. Once you invest a large sum of money in this program, it is an instant annuity plan that gives you, the investor, a fixed sum.

The scheme’s interest rates change every year. Earlier, the scheme used to carry a constant instant rate for the entire duration of the investment. It is available for people aged 60 years and above.

  • Post Office Monthly Income Scheme (POMIS)

The Government of India supports the Post Office Monthly Income Scheme. India Post offers this scheme. You will receive a fixed monthly interest rate with this senior citizen investing choice. This low-risk monthly income plan offers significant financial protection to preserve your retirement. The authority overseeing this scheme revises interest rates every quarter. You can transfer your POMIS account from one post office to another.

  • Mutual Funds

Mutual funds pool the capital of many investors and spread it over various asset classes, including equity and debt. Fund managers run them and they make sure the fund achieves its investing goals. As we have already noted, most fixed-income investment instruments can only provide returns on par with inflation or returns that are marginally above the inflation rate. But, returns from mutual funds can generate returns much higher than inflation.

After retirement, your risk tolerance declines, and the security of your capital takes precedence. Investing primarily in equity-oriented mutual fund schemes may expose you to volatility that you are not comfortable with. So, you can either invest in hybrid mutual funds with minimal equity exposure or debt mutual funds. You can decide based on your risk tolerance and short-term objectives.

  • Tax-Free Bond

Government infrastructure firms, including NTPC Limited, Housing and Development Corporation, NHAI, and Indian Railways Finance Corporation, issue tax-free bonds. The bond has a term of more than ten years. Additionally, there is a lock-in period until the investment matures. These bonds’ interest rates vary from 5.5 to 6.5 percent. The annual interest payment from the bond issuer and the complete interest amount are tax-free.

Since the government is behind the program, tax-free bonds are low-risk investments. Therefore, the likelihood of default is negligible. The program also guarantees regular income in interest payments and gives capital protection. As a result, it is the best investment choice for retirees.

Investors can still sell the bonds on the stock exchange even when there is a lock-in period. However, bond returns depend on the bond’s purchase price because they trade in low volumes.

Bond sale gains are subject to Section 112 taxation. Profits from the sale of the bond before its one-year term are subject to the investor’s income tax rate bracket. Let’s say you sell the bond a year later. If that is the case, the long-term capital gains will attract tax at a rate of 10% without the benefit of indexation and 20% with indexation.


Investors mostly finish their financial obligations when they are closer to retirement age. Also, the majority of them would have made retirement plans. Therefore, all they require is an additional reliable source to compensate for any of their losses post-retirement. Additionally, they must consider growth in the form of capital gains.

Elderly investors usually are not ready to take on any more risk to make a few more rupees. However, even at 60, some investors have a high-risk tolerance. Therefore, the greatest investment plan will enable senior citizens to benefit from capital growth while providing a reliable source of income.

Senior citizens should therefore pick the most significant investment opportunities in India that fit their needs. Financial gurus advise investors to make informed judgments armed with the knowledge of the numerous investment options accessible.

 online marketplaces like LenDenClub further simplify the process for investors. Let us see how –

  • A family of more than 2 million people
  • AI-powered Auto investment
  • Allows diversification and reduces risk
  • Screens borrower’s profile through 200+ data points to reduce the risk of default.
  • Provides returns up to 12% p.a*.
  • Market-risk free returns
  • Safe and Secure transactions using the ESCROW mechanism. 

Hop on the bandwagon with 2 million+ investors. Register now!

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.



The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.


*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

© 2023 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499


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