Getting a regular monthly income after retirement can be challenging. However, if you invest wisely during your working years, it is possible to achieve this.
One effective way is through the Senior Citizen Savings Scheme (SCSS) available at post offices.
If you are a senior citizen, you can deposit a lump sum amount into the SCSS. This scheme offers up to Rs 20,000 per month with an interest rate of 8.2%.
The SCSS has a maturity period of five years. Any Indian citizen over 60 years of age is eligible to invest.
The maximum investment limit has recently been increased to Rs 30 lakh, up from Rs 15 lakh.
Benefits of Senior Citizen Savings Scheme
The SCSS is a beneficial option for retirement planning. Here’s what you need to know:
Investment Amount and Interest: Senior citizens can make a one-time deposit into this scheme. You can earn up to 8.2% interest.
The scheme has a maturity period of five years. The maximum investment limit is now Rs 30 lakh, increased from the previous limit of Rs 15 lakh.
Monthly Returns: If you invest Rs 30 lakh in the SCSS, you will earn about Rs 2,46,000 annually. This translates to approximately Rs 20,500 every month.
Eligibility and Opening an Account
Who Can Invest: Indian citizens aged 60 and above can invest in this scheme. Additionally, those who retire voluntarily and are between 55 and 60 years of age can also open an account.
How to Invest: To start, visit your nearest post office and open an SCSS account. Note that tax will apply to the earnings from this scheme.
The SCSS can be a secure and profitable way to ensure a steady income after retirement. Make sure to understand all terms and conditions before investing.
