Usually, the retirement age is considered 60 years and some people want to retire early while some want to retire late. The ideal goal for people after retirement is to enjoy their retirement life happily. Money is one of the important sources of happiness and comforts. Some people continue to work even after 60 years due to passion for their work. Banks and financial institutions provide the best investment options and attractive interest rates for them.
The goal of investment for people above 60 years is to make cash readily available whenever they want. Many people who are investing during their retirement age prefer not to put their money into fixed options, they want money available for them without any waiting period. If you are close to retirement suppose five to ten years you have shorter investment periods.
Investment options are available based on the time if you are investing during the 60’s it is wise to put your money securely. If you have longer investment plans then you can save your money in stocks, mutual funds that give you good returns for over a period of time. Here in this article, we provide you with some investment options during your 60’s that will give you good returns.
Before you invest you need to consider the internal and external factors.
Internal factors such as the time you want to invest, how much returns you are expecting post-retirement life and the opportunity cost that you are willing to forego by doing investments.
You should consider External factors such as inflation, healthcare expenses that will increase in the future. Once you get a clear understanding of what your expected returns are and how much you are investing you can make your investments in the options below.
- Gold Investments
- Fixed Deposits
- Savings Schemes
- Mutual Funds
- Recurring deposits
1. Gold Investments
UAE is the land of Gold. Gold is just not metal, it is a good investment instrument. This is one of the best investment instruments that will increase its value over a period of time. You can sell the gold investments and you will get decent returns in the future. You can also invest in gold schemes. The UAE government fixed interest rates on Gold schemes.
The investors can invest and earn an interest rate of 2.5% which they will get every 6 months on their investments.
Banks like Emirates NBD, RAKbank and many other popular banks provide gold investment accounts and plans to the investors encouraging them to invest.
Click here for Investing in Gold Coins
2. Fixed Deposits
Fixed deposits are the most popular investments as it is one of the best simple investments with secured returns over a period of time. Fixed deposits are long term investments where the money is held by the bank for a particular period of time and interest is offered for the deposit of money. This is a good investment option for the citizens in the 60’s because there is less risk and good returns. Fixed deposits can be opened with any bank and anywhere.
The rate of interest for the senior citizens are higher and the returns they get will be higher compared to other general public. Almost all the banks have the same interest rates but to attract customers banks offer various types of schemes and offers for investments. If there is inflation, the money will not grow much but other prices keep increasing. It is a safe investment option as you can get some return.
The returns on the fixed deposits are noteworthy and they can increase your investment amounts. Fixed deposits are a secured channel of investment and it is wise to invest in fixed deposits. Banks in the UAE such as HSBC, Emirates NBD, Mashreq, ADCB and other popular banks provide fixed deposit accounts. The interest rates are higher compared to the savings accounts.
You can close your fixed deposits after the period of time that you have invested. You also have the option to pre-close your fixed deposits. If you break your fixed deposits before maturity then you will get reduced returns. It is best advised to keep money in your accounts till the fixed deposits get matured.
3. Savings Schemes
Savings Schemes will provide an opportunity to invest your money securely in an account. You can build your savings slowly and steadily by depositing your money into savings accounts. The interest rates provided by the banks are encouraging the customers to make deposits. Banks also provide sharia-compliant savings schemes to the UAE nationals and expats which are safe investment opportunities.
Savings accounts can be opened with foreign currency and you can passbook to record all the transactions. This is a good investment option to citizens in their 60’s because the interest rates are attractive and money can be withdrawn at any time you want.
Click here for How interest rates are calculated on savings account?
4. Mutual funds
Mutual funds create wealth and growth for senior citizens. Retirement plans and senior citizen benefits are offered by mutual funds. Investing in low-risk investments are safe investments. Depending on the investment needs you can invest your money in the long term, short term and medium term investments. You can invest online or through the broker. Mutual funds are professionally managed and are safe investments options. Investments can be made into
- Equity funds
- Fixed-income funds
- Index funds
- Balanced Funds
- Money-market funds
- Income funds
- International Global funds
- Specialty funds
- Exchange-traded funds
- Liquid Funds
The great advantage of mutual funds is low investment and the Systematic Investment Plan provides an opportunity to invest with healthy financial habits with good returns. The investor can park extra cash into these instruments with the desired maturity period. It is important to consider the lock-in period before investing in mutual funds. If you want to have money any time you want it is good to invest in mutual funds without any lock-in periods. Lock in period investments is held for long periods of time because the underlying investment is made in long term assets.
Click here to know Why mutual funds can be the best investment option?
5. Recurring deposit
For senior citizens who prefer risk-averse investments, recurring deposit are the best options. Every month a specific amount of money is invested from the bank account to the recurring deposits account. It is a disciplined investment whereby a fixed amount of money is invested into a systematic method for a period of time.
The best advantage of investing in RD (Recurring Deposit) is that it has good interest rates which are higher than the savings accounts. Apart from savings accounts, the investor should open a recurring deposit account. The recurring deposit account can be utilised after the tenured period. The recurring deposit account interest rates range between 5.25% to 7.90% for a period of one year. The interest rate depends on the tenure and monthly investment amount.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
