Investment Options for Senior Citizens in India
Retirement is
an important stage in every once life. Everybody, whether self-employed or
salaried, expects to secure their lives post-retirement. This article discusses
everything you need to know about various investment options post-retirement
for senior citizens.
Senior citizens
who are retired from their work may have two options or situation from which they have to earn during their non
working days.
- Some may get Pension for their living and some corpus from their firms (Govt. or private)
- Some do not get Pension but got good corpus which they have to utilize/invest to earn their monthly expenses
Following are some options for Senior Citizens to invest in them
- Senior Citizen Savings Scheme (SCSS)
Maximum Investment - Rs. 15,00,000 per person
Minimum
entry age - 60 Years
Rate
of Interest (From 01-04-2020) - 7.4% per annum (Interest paid quarterly)
By
investing Rs.15 lac one could earn Rs. 27,750
every quarter (1,10,000/ year)
Not
only is the rate of interest offered on this scheme comparatively higher than
that of the regular savings and fixed deposit accounts, but you are also
eligible for tax benefits up to Rs.1.5 lakh under Section 80C of the IT Act,
1961.This
scheme is for 5 year tenure after that one can extend for next 3 years
- Pradhan Mantri Vaya Vandana Yojana
This option was to close on 31st March 2020, but now its has been extended till 31st March 2023
this scheme is provided by LIC and it is for 10 years,
Maximum investment - 15,00,000
Minimum investment - 1,50,000
Interest rate - 7.4% per annum
- Fixed Deposits (Bank and Post Office)
In case you are investing in post office FDs, you will be offered the same tax benefits as that of the bank deposits. However, post offices offer an additional layer of security on your deposits. The funds in your post office deposit account are directed towards the government to ensure that there is no delay in payments.
You can
also consider investing in the Post Office Monthly Income Scheme (POMIS), which
offers a monthly income. Though you can avail tax benefits on investments up to
Rs.1.5 lakh on FDs with a five-year maturity period, the interest income on the
same is liable for taxation.
- LIC Jeevan Shanti Plan
This
plan suits for both senior citizens and people who are grate than 30 years. This
plan will give good and consistent return as per individuals need
If
you need any details about any above mentioned plans then please write in the comment
I will try to explain in details
Great
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DeleteReally helpful and something new which many people are unaware of!
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