Retirement is one of the most crucial steps in our Life. To Have a Comfortable and Secure Life Post Retirement, You Need to Plan Your Retirement Wisely. In this Article We have Discussed Everything You should know about the senior citizen saving scheme to achieve financial Freedom Post Retirement.
Investment after Retirement creates a Financial Cushion for Longtime to Ensure a Financially Strong future. By Choosing the Right saving scheme You can secure Your Basic Needs Post Retirement. You Need an Investment Plan that overrides inflation, offers Periodic Pay-outs, and Also Helps You to maintain Your Standard of Living.
Inflation is Increasing Every Year and it Might Get Difficult for some retired senior citizens to Maintain Good lifestyle Because of Poor Retirement Planning. Post Retirement You need to invest in a Product with high returns on investment and long-term stability.
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Given Below are Details of the senior citizen saving scheme options that can Help You to Make a Wise Selection.
Senior Citizen Savings Scheme ( SCSS )
Senior Citizen Savings Scheme or SCSS is a Scheme Started by the Government of India for the Senior Citizen of India. SCSS Has a Five-year Tenure which can be Extended Further by Three More years. Currently, the senior citizen saving scheme interest rate is around 7.4% Per Annual, Investor can save up to 15 Lakh.
The Amount Invested in SCSS is Eligible for Tax benefit Under Section 80C. To Availed the Senior Citizen Savings Scheme, one can visit Their Nearest post office or a Bank. It is a Great Investment option for anyone Above the age of 60. As Mentioned Before, the Scheme tenure can be extended by 3 Years, But to Extend the Tenure the Investor is required to submit the duly filled Form B.
Key-Feature of Senior Citizen Savings Scheme
- A safe and reliable option for Long Term.
- The SCSS account can be opened Easily at any authorized bank.
- The investor has an option to Select a Nomination.
- SCSS is Eligible for Tax Benefit Under Section 80C.
- The tenure Period can be Extended Further by 3 Years.
Other Investment options After Retirement
Bank Fixed Deposits ( FDs)
Fixed Deposits are one of the best senior citizen saving schemes. FD is a Great Way to Grow Your Savings with maximum Security. Above all, Fixed Deposits Lets You Invest Money in Lump-sum for a Particular Tenor and Enjoy the Earnings on Interest.
Unlike other Investment options Like Mutual Funds or Stocks, Fixed Deposits Guarantee a Return on Your Deposits. Depending upon Banks, the Interest Rates for FDs are around 7.25 percent per annum for ranging from 1-10 years.
Features of Fixed Deposit
- The Returns on Your Investment is unaffected by Market Fluctuations.
- Fixed Deposit Rates are usually higher compare to other Investment Like Recurring Deposit or Savings Account.
- FD’s can be Easily Renewed to Get Additional rate Benefits.
- Fixed Deposits are one of the Safest options to Invest for long-term Stability.
- Higher Fixed Deposit rates for Senior Citizens.
- Option for periodic Interest Payouts helps to Manage Your Expenses.
Post Office Monthly Income Scheme (POMIS)
Post office monthly income Scheme or POMIS is a Scheme that offers Fixed returns on Investment. In addition, With an Interest rate of 7.5% ( Approx ) Annually, the Post office Monthly Income Scheme one of the highest-earning schemes for Senior Citizens.
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The Maximum You Can Invest in POMIS is 4.5 Lakh with Tenure for 5 Years. You can Not withdraw the Amount Before 5 years. In case if You want to withdraw Your Deposits before the Time of Maturity, You have to Pay a Penalty depending on the time of such redemption.
For Higher Profits, You can reinvest the interest in Equity or Post office Recurring Deposit. To Open a POMIS Account to are Required to submit a copy of ID proof, Address Proof, and Passport Sized Photographs. Keep the original Documents with You for verification while Visiting the Post office.
Mutual Funds are one of the Most Popular senior citizen saving schemes.
Investing in Mutual Funds can be a Great option to Grow Your Wealth after Retirement. Mutual Funds are Formed when Several an Asset Management Company Pools Investment from Investors to Invest in Bonds, Securities, and Other Assets. A Fund Manager is Responsible to Manage all the Funds and produce capital gains for the fund’s investors.
The Importance of Mutual Funds Depends on the Performance of the Securities. It is important to do Your Research Before Investing Your Money in Mutual Funds. Unlike Stocks, We Do Not Invest our Money in a Particular share. Mutual Funds Represent investments in many different stocks, Instead of Just one Holding.
Key-Feature of Mutual Funds
- You can Start Investing in Mutual Funds with a SIP of 500 INR Per Month.
- Mutual Funds Have a Diverse portfolio by investing in Mixxed asset classes.
- You can Easily Start Investing in Mutual Funds Using Mobile Application Like Groww App.
- Mutual Funds Help You Make a Consistency Savings Habit.
- There is a Wide Range of Mutual Funds Schemes Available to Choose From.
Pradhan Mantri Vaya Vandana Yojana ( PMVVY )
Managed by Life Insurance Corporation, The Pradhan Mantri Vaya Vandana Yojana is a Retirement Pension Scheme for Senior Citizens of the Country. The PMVVY Scheme Provides Returns of 8% per Annual for 10 years.
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The Eligibility Criteria for PMVVY is a Minimum of 60 Years of age and the Investor Should be a Citizen of India. To Enroll for PMVVY, the Investor Needs to Submit Documents Like Aadhar card Copy, Age Proof, Address Proof, Passport Sized Photo, and Retirement Documents. Similarly, The Applicant can Apply for PMVVY From Their Nearest LIC Branch or They can also Visit the LIC official Website and Apply there.
Pradhan Mantri Vaya Vandana Yojana
- A loan Facility is Available after the completion of 3 years. The investor can take up to 75% of the Purchase Price.
- Provides Assured rates of 8% to 8.30% per annum
- There is No maximum Entry Age in PMVVY.
The benefit and Importance of Retirement Planning
- You can enjoy a Stress-Free Life with Financial Freedom.
- You Do Not have to Depend on Your Children’s.
- No one can Work Forever.
- Enjoy Tax Benefit for Investment Like PPF and NSC.
- Get inflation-beating Returns.
Retirement Planning is an essential part of our Financial Decisions. Retirement Ensures additional source of income to Support Your Standard of Living after Retirement. We hope this Article Clears all Your Queries related to senior citizen saving schemes. Above all, If You have any questions related to investment options After Retirement, you can write us at email@example.com, We will be happy to help You.
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