Looking for a secure way to earn a fixed income after retirement?
The Post Office Senior Citizen Savings Scheme (SCSS) could be the perfect option. This scheme offers a monthly pension of Rs 20,500, making it an ideal choice for senior citizens who want a reliable income after retirement.
How Does the SCSS Work?
Under the SCSS, you can invest up to Rs 30 lakh. With an interest rate of 8.2%, you will earn around Rs 2,46,000 annually, which is paid out as Rs 20,500 every month.
This provides a steady and predictable income, making it a great option for senior citizens who want to ensure financial stability in their later years.
Investment Requirements
The investment limit in SCSS was previously Rs 15 lakh, but it has now been increased to Rs 30 lakh.
You need to make the investment in one lump sum, and the interest is credited to your account quarterly.
If you wish, you can use this interest for your monthly expenses.
Eligibility Criteria
Senior citizens aged 60 years or above.
People aged 55 to 60 who have taken Voluntary Retirement Scheme (VRS)
You can open an account in any post office or authorized bank.
Tax Benefits and Implications
Tax is applicable on the interest income from SCSS. The investment amount qualifies for a tax exemption of up to Rs 1.5 lakh under Section 80C.
Scheme Duration
The initial term of the scheme is 5 years. After 5 years, you can extend it for an additional 3 years.
Premature Withdrawal
It’s possible to withdraw your investment before the maturity date, but doing so will incur a penalty.
Why Choose This Scheme?
- Government-backed security
- Fixed monthly income
- Tax exemptions
- Perfect for senior citizens seeking a stable post-retirement income
This scheme is an excellent option for those who want to ensure financial independence and security after retirement.
