Senior Citizen Savings Scheme: Planning for retirement is crucial to ensure financial security in your golden years. With no regular income source, your retirement corpus becomes your lifeline. Here’s a look at five top investment plans in India that can help you build a sizable nest egg and provide a steady income stream post-retirement:
Post Office MIS
The Post Office Monthly Income Scheme (MIS) provides individuals with a fixed monthly income during retirement. Joint accounts can be opened under this scheme, with a maximum annual investment limit of Rs 9 lakh for single accounts and Rs 15 lakh for joint accounts. Currently offering an interest rate of 7.4 percent, individuals can secure a monthly pension of up to Rs 9,250 through a joint account.
Atal Pension Yojana
Atal Pension Yojana is designed to offer a steady income in old age. Individuals aged between 18 to 40 years can invest in this scheme, contributing a small amount monthly until they reach 60. After reaching 60, subscribers receive a monthly pension ranging from Rs 1000 to Rs 5000, depending on their contributed amount. Non-taxpayers in the age bracket of 18 to 40 years are eligible to invest in this scheme.
EPFO
Employees contributing to the Employees Provident Fund Organization (EPFO) can secure a better retirement. Continuous contributions for 10 years or more entitle individuals to a significant sum at retirement age along with pension benefits. EPFO offers attractive interest rates, and individuals can enhance their contributions through Voluntary Provident Fund (VPF) for a more substantial retirement corpus.
Mutual Funds
Investing in mutual funds through Systematic Investment Plans (SIP) can help build a substantial retirement corpus. With an average return of 12 percent in the long run, mutual funds offer better returns compared to other schemes. By investing for 20 to 25 years, individuals can accumulate a significant fund to support their retirement.
National Pension System
The National Pension System (NPS) is an excellent option for securing a monthly pension. Majority of the deposited amount in NPS is invested in the market, providing an average return of 10 percent. Any Indian citizen aged between 18 to 70 years can avail of this scheme, with investments continuing until the age of 60. Emergency withdrawals are permitted before retirement, with 40 percent of the withdrawn amount utilized for annuity, ensuring a steady pension income.
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