Want to better your future? Going to retire soon? Then this article is for you. Planning for retirement has become essential as soon as you begin your career, especially with the rapid rise in inflation. Without proper retirement planning, individuals may encounter difficulties in their later years. Today, we will discuss three schemes designed to alleviate the financial worries of those in private employment. This means that even if you don’t hold a government position, you can still secure a pension similar to that of government employees by utilizing these options.

 

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

 

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme specifically for senior citizens aged 60 and above. It guarantees a fixed interest rate of 7.4% for a duration of 10 years, shielding investors from market fluctuations. You can invest up to Rs 15 lakh in this scheme. Investors receive a fixed pension monthly, quarterly, or annually, and the principal amount is returned upon maturity. In the event of the investor’s death during the scheme’s term, the full investment amount is refunded to the nominee.

 

Senior Citizen Savings Schemes (SCSS)

 

The Senior Citizen Savings Schemes (SCSS) is one of the most attractive options for senior citizens aged 60 and above, currently offering an annual interest rate of 8.2%. This makes it a great choice for conservative investors. You can invest a maximum of Rs 30 lakh, with a tenure of 5 years that can be extended by an additional 3 years. Interest is paid quarterly, providing a steady income stream. Investments in SCSS qualify for tax deductions under Section 80C, although the interest earned is subject to taxation.

 

National Pension System (NPS)

 

The National Pension System (NPS) is a retirement scheme linked to the market, allowing investors to accumulate a fund through investments in equities, government bonds, and corporate debt. The returns depend on market performance, which can lead to variations in earnings. Participants in the NPS can benefit from tax deductions of up to Rs 1.5 lakh under Section 80C.

 

Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.