Distribution Phase of Retirement:

The whole working span of life, you work to create a handsome amount which you use to generate regular cash flow after retirement. When you start getting income after retirement you are into distribution phase of your retirement years. In these years to live your passion, hobbies & to live your life independently you use this retirement corpus to provide regular income.

You get regular income after retirement monthly or annually for your needs from this invested corpus.

 Plans after retirement –Distribution Phase:

 Immediate Pension Plans by Insurers:

Immediate pension plans are the pension plans in which you will start getting a fixed pension from next month after depositing the accumulated corpus. You will receive the income in the beginning mode (monthly or annually you choose for the income distribution. At present there are a few insurers which give immediate pension plans, which give you a fixed income from next month.

 Monthly Income Plans by Mutual Funds:

When we reach to our retirement stage our behaviour towards taking risk changes. We want our money to be safest. Monthly income plans these are the debt mutual fund schemes in which major asset allocation is into debt & debt related instruments. MIPs declare dividends from the generated profits. At present there are more than 35 Mutual Fund Companies which provide you Monthly Income Plans as a product.

 Senior Citizen’s Savings Scheme by Post Office / Designated Banks:

This is the best investment in safe investments for retired individuals, backed by the surety of the Government. Senior citizen’s saving scheme is designated in such a manner a retired person is looking for. It is the safest, more reliable 5 year scheme in which a person of age 60 & above can invest up to the maximum amount of Rs. 15 Lakhs. It gives the investor tax benefits under section 80C & allow premature withdrawals.

 Monthly Income Scheme by Post Office:

This investment product is the part of Small Savings Schemes in India, backed by the surety of the Government. Monthly income schemes can also be a better investment option after retirement as it offers the safe guaranteed returns in the form of monthly income to the investors. This scheme is of 5 years with the maximum capping of Rs. 9 Lakhs for joint holders & Rs. 4.5 lakhs for the individual. Investment can be made into Monthly income schemes through any post office all across the INDIA.

 Fixed Deposits / Bonds:

These are one of the favourite investments of individuals of India. These are considered to be one of the safest investments. Fixed deposits & Bonds can be the option retired people look for. These are considered to be very safe & give fixed returns on investments. Government issues bonds raise money from public & offers fixed returns in spite of that.

 Rental Income:

These are one of the investments which enable you to take care of your expenses as well as take care of inflation with time. Rental income can also be a good option into distribution phase. You will get the monthly income from the rented flat or house.