Timely retirement planning is very important to ensure financial stability and self-reliance in old age. For this, the government is running several savings schemes that provide financial security and peace of mind after retirement. These schemes offer regular returns, tax benefits, and financial security, which cater to different income levels and risk preferences.

Through these schemes, retirees can make a balanced financial plan for their lifestyle and health needs. Let’s learn about the major government schemes that can help generate regular income in old age. Do you also want to know how to stay financially secure after retirement? So let’s know.

Employees Provident Fund

EPF’s EPF scheme is a retirement savings scheme for salaried employees. In this, the employee has to contribute 12% of his basic salary during the job, and the same amount is also deposited by the employer. Currently, the interest rate on the amount deposited in the EPF account is 8.25%.

This fund matures when the employee completes the age of 58 years, which he gets in the form of interest received every year on the amount deposited in EPF and a lump sum amount. In case of emergency, the employee can also withdraw a part of the total deposit amount from the EPF account. The amount deposited in the EPF account is eligible for tax deduction under Section 80C of Income Tax.

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National Pension System

The National Pension System is a market-linked retirement scheme that allows people to build a fund through diversified investments in equities, government bonds, and corporate debt. The returns vary depending on the market performance. Subscribers can get tax benefits of up to Rs 1.5 lakh under Section 80C and an additional Rs 50,000 under Section 80CCD (1B).

Senior Citizen Savings Scheme

Senior Citizen Savings Scheme (SCSS) is one of the highest interest-paying schemes for senior citizens aged 60 years or above. Currently, the interest rate is 8.2%, making it an attractive option for risk-averse investors.

The maximum investment limit is Rs 30 lakh for 5 years, which can be extended for an additional 3 years. Interest is paid every quarter, ensuring regular income. Investment in SCSS is eligible for tax deduction under Section 80C. However, the interest received in it is taxable.

Public Provident Fund

The PPF scheme of the post office is a long-term savings scheme. Investors are getting a 7.1% interest rate in this government scheme. It has a lock-in period of 15 years, which can be extended for 5-5 years. The minimum annual investment is Rs 500, while the maximum is Rs 1.5 lakh. PPF has EEE class (exempt-exempt-exempt) status, which means there is no tax on the investment amount, interest earned, and maturity amount.

Partial withdrawals and loans are allowed after five years. PPF is suitable for people looking for low-risk, tax-efficient growth. Its long duration and tax benefits make it a reliable investment option for retirement planning and raising wealth.

Atal Pension Yojana

The Atal Pension Yojana (APY) aims to provide guaranteed pensions to unorganized sector workers and low-income groups after retirement. Subscribers can choose from fixed pension options ranging from Rs 1,000 to Rs 5,000 per month.

The amount of contribution depends on age and desired pension amount. For those joining before the age of 40, the government contributes 50% of the subscriber’s contribution (up to Rs 1,000) for five years. The contribution depends on the age of entry and the desired pension amount.

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