Retirement planning services in bangalore

Retirement investment plan

Retirement for most of us mean the end of standard earning and everybody ought to begin investment towards retirement from an early age. Creating wealth for your retirement is as vital as saving for any other financial goal.

There are various investment plans for senior citizens available in the market. Senior citizen savings scheme is one of the most promising investment options suitable for comfortable golden years of life.

Investment Options for Regular Income in retirement

Fixed deposits (FD) and recurring deposits (RD) :

Fixed deposits (FD) and recurring deposits (RD) are one among the foremost common varieties of investments created for retired people. Banks additionally provide a relatively higher rate on FDs and RDs for pensioners.

Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a low-risk pension plan scheme operated by the Life Insurance Corporation (LIC). One can invest in this for maximum of 10 years and earn the rate of interest fixed at 8% per annum.

The pension you receive under Pradhan Mantri Vaya Vandana Yojana ranges anywhere between Rs.1,000 to Rs.10,000 per month depending on the amount invested by the investor. The investment is PMVVY is not liable for tax deduction under section 80C of Income Tax Act, 1961. However, the scheme is exempted under Goods and Services Tax (GST).

Senior Citizen Savings Scheme (SCSS)

SCSS is an excellent investment option for golden agers looking for long-term saving schemes which offer security with other additional benefits. You can avail the scheme from post offices and recognised banks around the country.

Not only is the rate of interest offered on this scheme comparatively higher than that of the regular savings and fixed deposit accounts, but you are also eligible for tax benefits up to Rs.1.5 lakh under Section 80C of the IT Act, 1961.

Depositors are allowed to make a lump sum deposit with a minimum deposit of Rs.1000. Deposits greater than Rs.1000 have to be made in multiples of Rs.1000. The maximum SCSS limit deposit is Rs.15 lakh.

It is allowed to invest SCSS account in form of cash if the amount is less than Rs. 1 lakh. If the deposit amount exceeds Rs. 1 lakh, it is mandatory to use a cheque or demand draft for depositing the money. The deposit in SCSS matures after 5 years from the account opening date; however, it can be extended by an additional 3 years (only once). Investors can invest in SCSS through India Post Offices or Public / Private sector banks

Interest on Senior Citizen Savings Scheme is taxable and Tax Deducted at Source (TDS) is applicable for the interest amount more than Rs. 50,000 in a financial year.