Thinking about saving money for retirement can be stressful. Many plans come to mind, but it’s important to choose safe and low-risk options. The government offers several schemes that provide good returns. These schemes are suitable for everyone, including senior citizens and the very elderly. This article explores some of the best options for you.
1. Senior Citizen Savings Scheme
This scheme is perfect for senior citizens who want to invest in safe savings. By investing a little more money when needed, you can earn an 8.2% interest per year. It’s easy to invest in this scheme through the post office, with deposits ranging from a minimum of Rs 1,000 to a maximum of Rs 30 lakh. The scheme has a 5-year lock-in period.
2. National Pension Scheme
Since 2004, this scheme has replaced the old pension scheme. Any Indian citizen aged 18-70 can open an account. Both retired and pre-retired citizens can withdraw large amounts tax-free from this account after retirement.
3. Tax Saver FD
Banks, post offices, and cooperative banks offer fixed deposits at attractive interest rates for senior citizens. These interest rates are higher than those for younger or middle-aged citizens. The FD is also eligible for tax savings under Section 80C and has a 5-year lock-in period. The interest rate is typically 0.25% to 0.75% higher than the regular interest rate.
4. Atal Pension Yojana
This pension scheme provides a permanent pension ranging from Rs 1,000 to Rs 5,000 for citizens over 60 years old. The scheme offers five plans: Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, and Rs 5,000, all backed by the Government of India.
5. Pradhan Mantri Vaya Vandana Yojana
LIC’s Pradhan Mantri Vaya Vandana Yojana is a pension scheme for senior citizens. It offers pensions for up to 10 years. The lowest pension starts at Rs 1,000 per month, with options of Rs 3,000 every 6 months, Rs 6,000 every 6 months, or up to Rs 12,000 annually.
6. Public Provident Fund
The PPF is popular for offering a good interest rate and low risk. It provides an interest rate of 7.10% per annum, with the rate updated every three months. This scheme is also beneficial after the age of 60, offering high-interest returns while helping you save on taxes.
Disclaimer:
The information provided in this article is for general knowledge and educational purposes only. It does not constitute financial, tax, or investment advice. Readers are advised to consult with a certified financial advisor or relevant authorities before making any investment or tax-related decisions.