Would your retirement income be enough to meet your post-retirement expenses? Nowadays, finding the best investment options for retired persons in India has become confusing. Many schemes are available, but only a few are relevant if you want a regular and good income. In this article, we will know about the best investment options for pensioners and retired persons. Hence, if you are also willing to know about these schemes, go through this post carefully.
Before we start our discussion, we need to look for the key features. That you can expect from your post-retirement pension schemes.
- The post-retirement scheme should offer the income which matches the inflation.
- You can make a stable living without borrowing funds from relatives or banks.
- It should give periodic payments so that you can maintain your regular expenses.
- The investment should offer a return that does not allow you to depend on your children.
Thus, considering these things, we have found the Best investment options for retired persons in India. That will fulfill your needs with the best returns, so let’s start exploring all those schemes.
6 Best Investment Options for Retired Persons in India
1. PMVVY or Pradhan Mantri Vaya Vandana Yojana
PMVVY is one of the best investment schemes available from LIC. It is a low-risk investment option, and the tenure of this investment is 10 years. Under this scheme, you can get a 7.4 percent interest rate as per the previous year’s investment. But only senior citizens (60+) can invest in this investment scheme with a lump sum amount.
Under this option you can get Rs1000 to Rs10,000 per month if you invest Rs1,50,000 to Rs15,00,000 annually. However, this investment scheme cannot acquire a deduction under 80C because the government is already exempt from GST. Also, it gives interest rates nearly to the SCSS.
2. Housing Investment
Investing in real estate and housing is also a great decision because the prices of land and house are increasing. As the demand for the house and population increases, you will have an excellent opportunity to charge a reasonable rent. However, you can also sell your property for more price in the future, which is an added advantage for you. Nowadays, many retired pensioners use this method to make a good living that they spend in a young life.
3. SCSS or Senior Citizen Savings Scheme
SCSS is another excellent investment option in the present for senior citizens. It is a long-term investment scheme offered with additional benefits also. This scheme is available in post offices and authorized banks. Thus you can easily avail this investment option.
In this scheme, you get the higher investment option and the deduction of up to Rs1,50,000 under 80C. As this is the scheme for retired persons, you need to give the nominee’s name. The best thing about this scheme is that it gives a 7.4% interest rate compounded annually. In this scheme, you can invest up to Rs15,00,000 and not more than that.
4. RD & FD
Recurring deposits (RD) and fixed deposits (FD) are the two major investment options available. These investment options are preferable by most people as they get a fixed rate of interest. Generally, most of the banks provide comparatively high interest on these two investment options. If you get retired and use this investment option, you can avail of a deduction of Rs50000. Because under section 80 TTB, the interest income from FD and RD is tax-free.
Also, if you are finding the monthly investment option, in that case, you can look for POMIS. The Post Office Monthly Income Scheme is also a great tax saver and ideal investment option. Under this scheme, you can get tax benefits up to Rs1,50,000 on its FDs five year investment plan. It will mature after five years, and the interest income is taxable, but you get up to Rs1,50,000 tax benefit.
The National Pension Scheme is available for individuals aged 18 and 65 years. The tenure from this investment goes up to 70 years, and investing in it can avail up to Rs1,50,000 tax deduction. In simple under section 80, you get up to a 1,50,000 deduction, and under 80CCD, you get an additional tax deduction of Rs50,000.
The invested money is going to NPS, and it can use it in equity, government, and corporate securities. It can also allocate your investment in various other options depending upon your age. You also have to choose the option to invest in or choose the automated option. The great part of this investment option is there are higher chances to get a higher return as it contains up to 70% equity. That’s why in maturity, you get an excellent return which you expect.
6. Mutual Funds
Investing in mutual funds is also an ideal decision to build wealth over time. You can invest in this investment option for tax benefit and higher return. Thus, you can invest in ELSS, a tax-saving fund of Mutual Funds under section 80C. If you choose Mutual funds for investment and identify the best handpicked inflation-beating plans, then you can surely enjoy your post-retirement life.
Tips Keep Track of The Incomes From Investment
- Many investment options are available; hence invest after deep research.
- Maintain track of your interest payment for better analysis.
- Keep records and tally the bank statements.
- Terms and conditions are crucial to reading before the investment.
- If you have any doubt then ask your bank and authorized person.
Thus, in this article, we learned about the crucial investment options for retired persons in India. If you also want to save your post-retirement life, you should choose one of the mentioned investment options. It will keep you stable with your financial needs and fulfill your medical, operational, and other expenses.
You will also not have to ask your kids to meet your expenses. Many people do not want to stay dependent on their kids, so they invest in NPS, Mutual Funds, PMVVY, SCSS, and other schemes. You can also be one of those and save your life once you retire, and I hope you will do it for your future.