Senior citizens often seek investment options that promise guaranteed returns. The best investment avenue is, however, the one that offers steady returns with greater safety. Hence, investing in a risk-free investment option is as crucial as possessing a diverse investment portfolio.
Most senior citizen pension schemes are not lucrative enough even if they offer high stability. Thus, one needs to consider low to medium-risk and steady options to earn decently and also safeguard their capital.
So, some of the risk-free investment options that senior citizens can benefit from most are –
 Senior Citizen Savings Scheme
SCSS enables an individual to invest a lump sum amount ranging between Rs. 500 and Rs. 150,000 depending on your financial portfolio. It offers a high rate of returns up to 8.95%. You can invest in it as soon as you are 60 years of age and only if you are retired.
However, the drawback of this senior citizen pension scheme is that it cannot be availed for more than 5 years. Besides, it can be renewed only once, for a period block of 5 years.
 Senior Citizen Fixed Deposits
One of the best old-age pension schemes for senior citizens is senior citizen fixed deposits. For instance, with a Bajaj Finance Fixed Deposit, you are offered higher interest rates than standard FDs. This deposit has a flexible tenor ranging between 12 months to 60 months that you can choose as per your financial requirements. It is also immune to market fluctuations – thus assuring guaranteed returns.
A non-cumulative fixed deposit serves as a great pension scheme for senior citizens as it enables them to gain periodic interest payments. It can be monthly, quarterly or half-yearly pay-outs. Retirees can use these pay-outs to meet their regular expenses and for other investments as well.
Further, if you are worried if your fixed deposit investment really safe, FDs from leading financers are backed by credit authorities such as CRISIL and ICRA with the highest stability ratings. Hence, your investment is never at risk.
 Atal Pension Yojana scheme
APY is a guaranteed pension scheme launched by the Union Government. This social security scheme provides pensions ranging between Rs. 1,000 and Rs. 5 000 – depending on your contribution and age. This pension plan proves particularly beneficial for private-sector employees who are not provided with pension benefits.
Atal Pension Yojana scheme was primarily launched to address the risks among workers employed in the unorganized sector. It also provided them with the requisite encouragement for employees to voluntarily save through the APY scheme for their retirement.
 Post Office Monthly Income Scheme
Another credible savings scheme for senior citizens is POMIS that allows you to deposit up to Rs. 4.5 Lakh (single ownership) and up to Rs. 9 Lakh (joint ownership.) This MIS (monthly income scheme) provides you with interest rates up to 7.69% – as per announcements in Q2 Summit, 2019.
This scheme offers a safe and steady passage of revenue like a fixed deposit – unaffected by market fluctuations. So, if you are wondering who wins the investment battle between MIS and FD, it is fixed deposits for its wide range of benefits.
This is because; you can withdraw money when required and yet, earn a fixed return until the time of withdrawal. Plus, the rate of interest offered by senior citizen FDs (8.95%) is also higher than that of the Post office monthly income scheme (7.69%).
 Debt Funds
As for senior citizen pension schemes, debt funds can offer a passage for high return investments – for your post-retirement period. They provide you with returns with up to 15% p.a. and also offer high liquidity.
However, the returns depend on the performance of funds in the market and not immune to market fluctuations as fixed deposits. This is the reason why a fixed deposit is better than any other investment schemes.
Retirees looking for senior citizen pension schemes that are safe and offer assured returns to meet their day-to-day financial needs. However, one single investment option cannot meet all requirements of an investor like safety, liquidity, and taxability among other concerns. Therefore, one has to maintain a diversified retirement portfolio such that it meets the investor’s concerns optimally.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at HighlightStory