Retirement Scheme: Everyone worries about a regular income after retirement, as salary stops after employment and savings are used for living expenses. In such a situation, there is a need for a safe and reliable investment option that provides a fixed monthly income. Keeping this need in mind, the Post Office has introduced the Senior Citizen Savings Scheme (SCSS). This scheme provides a regular income after retirement.
This Post Office scheme has long been a trusted option among senior citizens. It offers excellent interest rates from the government, along with tax benefits and safe investments. Therefore, it is ideal for post-retirement financial needs.
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How does the scheme generate regular income?
Investors in the Senior Citizen Savings Scheme benefit from an interest rate of 8.2% per annum. This rate is higher than other safe schemes in the market. This interest is paid every three months, meaning the investor receives a fixed income at regular intervals. This scheme also offers a tax exemption of up to ₹1.5 lakh under Section 80C of the Income Tax Act.
Let’s assume a retired individual invests ₹30 lakh in this post office scheme. At the prescribed interest rate, he or she earns ₹246,000 in interest annually, resulting in a steady income of approximately ₹20,500 per month. This amount is sufficient to meet monthly expenses such as necessities and medicines.
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Who can avail of the scheme?
This post office scheme is specifically designed for individuals aged 60 years and above. However, those aged 55 to 60 who have taken voluntary premature retirement can also avail of this scheme. Such individuals are required to submit retirement documents. The minimum investment amount in this scheme is ₹1,000, while the maximum investment limit is ₹30 lakh. Investors can easily open an account at any nearby post office.
What documents are required?
To open an account under this Post Office scheme, it is necessary to submit an Aadhaar card, PAN card, proof of age, and two passport-size photographs along with the application form. If an investor has retired prematurely, they must also submit a certificate from the department.
