4 Secure Investments for Risk-Free Income


After dedicating several decades to their careers, many individuals choose retirement as a time to embrace a leisurely lifestyle. However, a crucial aspect of enjoying a comfortable retirement is having a stable source of income. While some retirees benefit from robust pension plans, others may need to explore alternative avenues to generate income. In such cases, investment schemes that offer good returns without taking unnecessary risks become crucial. This article aims to delve into the features of various investment options available in the market, providing a comprehensive understanding of how these schemes can effectively support post-retirement financial needs.

1) Annuity Scheme: A Secure Investment Option

Among the investment options available to retirees, annuity plans offered by insurance companies stand out as the least risky choice. Annuity plans come in two types: deferred annuity and immediate annuity. Immediate Annuity Plans cater to individuals seeking to invest a lump sum amount and receive an immediate monthly income upon retirement. On the other hand, the deferred annuity option is more favorable for those who prefer to invest early and secure a fixed income after a specific period.

Annuity plans offer a higher level of safety and protection against market-related risks. However, it’s important to note that annuity income is subject to taxation based on the investor’s tax bracket.

2) SBI Annuity Deposit Scheme: Security Backed by India’s Largest Bank

SBI Annuity Deposit Scheme, offered by the renowned State Bank of India (SBI), presents a reliable annuity plan. This scheme allows investors to receive a portion of the invested amount along with interest income every month. The SBI Annuity Deposit Scheme ensures monthly income in the form of the principal amount plus interest, obtained through a lump sum investment. The investment duration for this scheme is set at 10 years.

Notably, the SBI Annuity Deposit Scheme offers interest rates equivalent to those of SBI Fixed Deposits. Regular investors can earn an interest rate of 6.50 percent, while senior citizens receive a higher rate of 7.50 percent. The payout ratio of 14.24 percent comprises a combination of investment and interest. In the case of emergency situations, depositors can withdraw amounts up to Rs 15 lakh before the maturity date, subject to penalties similar to those applied to fixed deposits. Additionally, SBI Annuity Deposit Scheme provides an overdraft facility of up to 75 percent to address unforeseen financial needs.

3) Post Office Monthly Income Scheme: Ensuring Steady Returns

The Post Office Monthly Income Scheme serves as another viable option for securing regular income during retirement. This scheme guarantees monthly income for a period of 5 years. By making a lump sum investment, investors can earn interest at a rate of 7.40 percent. Unlike other schemes, there is no age restriction, allowing both common individuals and senior citizens to invest. An individual account can hold deposits of up to 9 lakhs. Upon the completion of the 5-year term, the invested amount will be refunded.

4) Guaranteed Returns Plans: Safeguarding Retirement Income

For retirees seeking a secure investment avenue, guaranteed returns plans offer an excellent choice. These plans ensure consistent, tax-free returns regardless of market volatility, providing peace of mind during retirement. Guaranteed returns plans often offer interest rates of up to 7.5 percent. In addition to financial security, certain plans, such as the GUARANTEED RETURNS SPU plans, offer life insurance coverage, thereby ensuring the financial well-being of dependents in case of the policyholder’s demise. Policyholders also have the option to extend the policy for up to 45 years, providing extended protection over a significant period. It is worth noting that if the annual premium remains below Rs 5 lakh, the policy’s income remains tax-free.


As retirement approaches, ensuring a stable source of income becomes a paramount concern for individuals. While some retirees may possess robust pension plans, others may need to explore alternative investment options to meet their financial needs. Annuity schemes, such as the SBI Annuity Deposit Scheme, provide a secure and low-risk investment avenue. The Post Office Monthly Income Scheme guarantees steady returns over a fixed period. For retirees seeking reliability and peace of mind, guaranteed returns plans offer a safe haven by providing consistent returns and life insurance coverage. By carefully considering these investment options, retirees can effectively secure their financial future, allowing them to embrace a leisurely life in their golden years.

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