4 Investment Options With Regular Income After Retirement - For Senior Citizens
Low (or no) income, combined with consistent expenses, particularly on healthcare, can lead to a lot of stress after retirement.
Retirement can be a fine phase of life - it is a time when people can just enjoy the yield that their hard work has reaped them over the years. No matter whether they choose to travel, start an independent business venture, or simply savor the fruits of their labor; retirement allows them to do what they wish to do without worrying about having a regular source of income. Thankfully, India's government has created various investment options that offer regular and stable incomes to senior citizens. These plans provide easy access to money and help in enjoying the golden years worry-free.
Few investment plans for senior citizens can help in safeguarding their financial future after retirement. These schemes are made with unique features for retirement savings along with additional benefits.
The Best Investment Options For The Senior Citizens After Retirement
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is an investment option introduced by the Life Insurance Corporation (LIC) of India in 2017 exclusively for seniors, aged 60 years and above. The scheme provides senior citizens with the benefit of assured returns in the form of pensions. All they have to do is to invest a lump sum amount in the plan at their convenience and enjoy a steady stream of income year after year. PMVVY is valid only for Indian citizens who are 60 years or older and there is no upper age limit.
The plan had been extended till March 2023 after its initial 3-year validity period ended recently. It offers a fixed rate of return, as per which LIC currently guarantees 8% interest per annum payable monthly for a 10-year policy term and 7.5% interest per annum payable monthly for policies with 3-year, 5-year, or single premium payment options respectively. These high returns compared to other fixed-rate products make it highly attractive particularly for elderly investors or pensioners who seek secured income even during periods of inflation and market volatility without having to manage their portfolios on their own.
Senior Citizen Fixed Deposits
Fixed deposits are considered to be one of the safest and most secure investment options in India, and many senior citizens also prefer them for their regular interest payouts. The Senior Citizen Fixed Deposit Scheme is available for both Indian citizens and NRIs over the age of 60 or those who have opted for early retirement before turning 60. The minimum investment required is 5,000 rupees; this amount increases to 10,000 rupees if a fixed deposit is opened at a physical bank branch.
The main advantage of the Senior Citizen Fixed Deposit scheme is that senior citizens can choose their preferred mode of interest repayment - whether it be monthly, quarterly, half-yearly, or annually. In addition to enjoying competitive interest rates and security of returns, they can also enjoy other great benefits such as higher zero balance savings account opening limit and additional overdraft facility. All these features make it an excellent choice for retired individuals to invest their hard-earned money in a safe investment option with good returns attached to it.
Senior Citizen Savings Scheme
The Senior Citizen Savings Scheme (SCSS) is one of the most popular and secure investment options in India for senior citizens. Offered by the Indian government since 2004, it provides 100% assured income for a maximum tenure of five years. Moreover, those aged 55 to 60 can apply if they have opted for voluntary retirement or are retired members of the defense forces. Senior citizens over 60 years of age enjoy eligibility to invest in SCSS without any restrictions with a minimum amount of 1000 rupees and a maximum amount of 15 lakh rupees. The scheme also offers an extension period of up to three years, thus making it an ideal option to create wealth without any risk involved.
In addition to providing guaranteed income, SCSS also offers tax benefits under Section 80C as well as benefits under Section 8OCCD2A on maturity or death during the scheme's tenure. It is therefore considered beneficial both from an earning perspective as well as from a tax planning point of view, thus ensuring that senior citizens make the best out of their investments even during periods when markets witness volatility or downtrends. Thus SCSS can be used as one of the safest investment options for senior citizens looking for steady returns with minimal risks.
Post Office Monthly Income
POMIS is an investment option with considerably lower risk, which is suited to meet the needs of elderly citizens. The scheme is backed by the Indian Finance Ministry, and it ensures a fixed amount of interest over a month. This makes it an ideal choice for senior citizens who are looking for a secure and steady income post their retirement.
The eligibility criteria for this scheme are unique compared to the other options available in the market. It follows a minimum age limit requirement, wherein any person 10 years old and above stands qualified to apply for this plan. It can be availed from any local post office, with a simple application process involved that requires documents like PAN cards as necessary proofs. All in all, Post Office Monthly Income Scheme provides elderly citizens with a safe investment opportunity that yields them sustainable returns during their later years.
So these were some investment that you can look up to if you are planning for a retirement. However, there are other plans as well that you can figure out after talking to your financial advisor or bank manager.
This article does not intend to pass on any financial advice and BQ Prime does not endorse any of the mutual funds/schemes/investments mentioned above. Please invest at your own discretion.
