Senior citizens should opt for Investment schemes that have guaranteed income and are sure to get a safe return on investment.

Highlight:

• Tax liability, risk profile and inflation should be considered before investing.
• The performance of the selected project should be checked at regular intervals.

In order to have a peaceful life in the post-retirement period, financial matters need to be planned clearly. One should be able to ensure financial security in later life from the savings earned during the service period. In this context, below are 5 ways that senior citizens can consider investing.

Senior Citizens Savings Scheme

Senior Citizens Savings Scheme (SCSS) is a scheme available for investment to individuals who have completed 60 years of age. Investment for a period of 5 years. Attractive rates of interest, guaranteed returns and consistent amount disbursed every financial quarter are the main offers of Senior Citizens Savings Scheme. Each senior citizen can invest a maximum of Rs 30 lakh in the SCSS scheme.

Fixed Deposit (FD)

Fixed Deposit is one of the most popular savings schemes in the country. Simplicity and reliability of the scheme, stable income and quick cash conversion facility (Liquidity) make fixed investment schemes attractive. Senior citizens are offered relatively high rates of interest from bank and post office fixed deposit schemes.

Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is an insurance-based pension scheme for senior citizens supported by the central government. The scheme is offered by Life Insurance Corporation of India (LIC). Monthly income up to 10 years with guaranteed income. However, inducting new members into the PMVVY scheme has now been put on hold.

Mutual funds

Investing in debt mutual funds or hybrid funds that invest in debt securities is something that senior citizens can consider. Fixed income and potential for capital gains come together as the main investment in such schemes is in fixed income financial instruments. However, since investment is subject to market profit and loss possibilities, suitable schemes should be chosen according to individual risk-taking capacity and financial objectives.

Post Office Monthly Income Scheme

Post Office Monthly Income Scheme (POMIS) is an investment scheme run by the Department of Posts, which provides fixed income every month. The investment period is for 5 years. The interest on the investment is fixed every financial quarter.

Factors to consider

Factors like tax liability, amount of cash held, risk taking capacity and inflation should also be evaluated before choosing each of the investment schemes mentioned above. Then check the performance of the chosen investment scheme at regular intervals and make any changes if necessary.

The post 5 Investment Plans for Senior Citizens to Secure Life appeared first on SciTechArena.