Where should retirees put Rs 20 lakh?

“Where should I invest Rs 20 lakh as a retiree?” a reader recently asked us. A simple question, but the answer? Not so much. Because it really depends on what you want from this money. Are you looking for a stable monthly income? Hoping to pass on a larger sum to the next generation? Or do you want your investment to grow while you occasionally dip into it? Let’s walk through three smart ways to put that Rs 20 lakh to work, each tailored to a different kind of retiree. Case 1: When regular income is the priority If your goal is to generate a stable income stream from your savings, you’ll need fixed-income options that are safe and predictable. The top pick? The Senior Citizens’ Saving Scheme (SCSS). At 8.2 per cent interest, it's currently one of the most rewarding fixed-income avenues available. It's backed by the Government of India and pays out quarterly. However, there’s a small hitch: The Senior Citizens’ Savings Scheme (SCSS) comes with a cap. You can invest only up to Rs 30 lakh. So, if you’ve already hit that ceiling, you’ll need to explore other options. One such route is a Systematic Withdrawal Plan (SWP) from a short-duration debt fund, which can provide a steady income stream. That said, relying entirely on fixed income isn’t wise, especially in a long retirement. To beat inflation

This article was originally published on June 10, 2025.