Everyone fantasizes of a dream retirement. How would you define a dream retirement? Just taking it easy, relaxing in your sprawling garden, reading or chatting with your loved ones over a hot steaming cup of tea. The ideal scenario to be in right? Enjoying your retirement years without having to worry about your finances, your fickle-minded boss or your children. Just the sort of thing everyone dreams of right? So, how to transform it into a reality? Is this dream harbored by most retirees just confined to glossy mags or in advertisements shown on the idiot box? Not really! Find out how you can lead a laid-back and relaxed life by investing in the right avenues.
Post-retirement life is not without its share of worries, especially when it comes to the finances as your monthly salary stops permanently. Of course, a pension is in the order, but it is not enough to fulfill your dreams and essential requirements. In India, most people have to rely on limited options as far as retirement planning is concerned. But it is not enough to cater to your growing expenses. So, you need to explore a number of investment options to make your future secure.
Senior citizens sometimes have to depend on their children to fulfill their financial needs. But times are now changing for the better, income along with better opportunities, and the fact that senior citizens have been more financially aware now than ever, mean that more and more senior citizens are now financially independent. But the senior citizens also face certain roadblocks in their financial goals, in the form of inflation, rising cost of medical care and increasing longevity. These reasons have forced senior citizens to look for fresh avenues of income, with greater returns. The government also provides certain investment options and provides benefits for senior citizens. All senior citizens should make it a point to avail of the same to enjoy greater financial independence.
The Perfect Investment Options for Senior Citizens –Explore and Invest
· Senior Citizens Savings Scheme- This investment is suitable for persons equal or who are over the age of 60. Voluntary retirees can also invest once they reach the age of 55. You can open a joint account with your spouse. The maximum limit is Rs. 15, 00,000 and it is irrespective of the number of accounts you have. The current rate of interest is 8.5%. The interest is paid quarterly.
· Senior Citizens Pension Plan or Varistha Pension Bima Yojana-This is an annuity plan where the payments are made periodically to the policyholder. It is suitable for anyone above the age of 60. The investment limit is Rs. 63,960 and the maximum amount can go up to Rs. 6, 39,610. The pension is taxable and monthly payouts are possible. The returns are around 8%.
· Post Office Monthly Income Scheme (POMIS) - This is available for whoever is 10 years or older can invest. The minimum investment limit is Rs. 1500 and the maximum go up to Rs. 4, 50,000 in the case of a single account holder and double the amount- Rs. 9, 00,000 in the case of a joint account holder. The fixed monthly interest rate is 7.7%. Monthly payouts are also possible. When the amount reaches maturity it can be re-invested in POMIS.
· Bank and Company Deposits- This is an old yet bankable form of investing option for senior citizens. One can invest money in the company deposits for greater interest returns. The rate of interest is much higher than the Bank FD interest rates. The age limit is 10 years or older for a solo account for a joint account it can be younger than 10 years. The investment limit ranges from Rs. 5000 to more than a crore depending on the bank or company. The Interest rate is 0.5% higher than normal fixed deposit rates for senior citizens. It is from 4%-8% for banks and for Company deposits it is 8%-8.90%.
· Mutual Funds-Senior citizens can invest some amount in Mutual Funds, especially the ones which have a lower risk. They can invest in debt funds, liquid funds and so on, that invest in various commercial paper, different bonds, and government securities etc. They can give good returns and can beat inflation. Monthly income plans can provide regular income. But mutual funds are subject to certain market risks and you need to be careful while selecting the right option for you.
Senior citizens can also enjoy a good post-retirement life if they plan ahead and make well-thought-out financial investments. So, go ahead and invest right and go take that much-delayed vacation you had planned with your family!!
