In today's time, with never-ending expenses and a limited income, how do you ensure that your funds comfortably earn you a regular income and still last your entire lifetime? You can always ensure a regular income after retirement if you take the right steps.
Here are few investment options for the retired-
1. Pradhan Mantri Vaya Vandana Yojana (PMVVY)
PMVVY is offered by the Life Insurance Corporation (LIC) of India. It gives a guaranteed payout of pension at a specified rate for 10 years, making it suitable for retirees.
An individual aged 60 years and above can invest in it. The current interest rate is 7.4% per annum paid monthly and its rates vary yearly. Once invested, the rate becomes constant for the entire tenure. It also offers a death benefit in the form of a return of purchase price to the nominee.
The scheme was to end on March 31, 2020, but the central government decided to extend until March 31, 2023 due to its popularity amongst retirees.
2. Senior Citizen Saving Scheme (SCSS)
SCSS scheme has been crafted especially for senior citizens seeking income after retirement. This scheme currently offers an attractive interest rate of 7.4% per annum, with the interest being paid out on a quarterly basis. The amount invested usually matures in 5 years and can be extended to 3 more years. In this scheme, tax is deductible from the source investment.
3. Post Office Monthly Income Scheme
It is a five-year investment with a cap of Rs 9 lakh under joint ownership and Rs 4.5 lakh under single ownership. The interest rate is set each quarter and is currently 6.6% per annum, payable monthly.
4. Government securities
Government securities or G-Secs are essentially debt instruments issued by a government. These securities can be issued by both the central government and the state governments of India. When you invest in such options, you generally gain a regular interest income. Since these are backed by the Government of India, these are virtually risk-free investments.
The guarantee from the Government is also called 'Sovereign Guarantee'. These work out better than annuities.
