Smart Investment Options For Retirees
31 Aug 2023
Smart Investment Options For Retirees
Senior citizens need savings and investment options to ensure financial security and independence during retirement years, covering living expenses, healthcare, and unexpected costs, while reducing reliance on family and friends. Fortunately, they have a variety of options based on their risk profile and objectives.
| Government bonds | Annuities | Pradhan Mantri Vaya Vandana Yojana (PMVVY) | Senior Citizen Saving Scheme (SCSS) | Debt Funds | |
|---|---|---|---|---|---|
| Interest rate (p.a) | 7.30%^ | 5.38-5.67% | 7.40% | 8.20% | Market-linked |
| Liquidity | Can be sold in the secondary market | Monthly/quarterly/half yearly/annual pension | Monthly/quarterly/half yearly/annual pension | Quarterly interest payments | Can be redeemed with the fund house or on stock exchange |
| Minimum investment | Rs 10,000 | Rs 1 lakh* | Rs 1.50 lakh | Rs 1,000 | Rs 5,000 or even lower |
| Mode of purchase | Through NSE GoBID, BSE Direct | Life insurers | LIC | Post offices, banks | Through distributors/fund house/stock exchange |
| Exit load | No exit load | Depends on age* | 2% | 1-1.5% | Based on the category of fund |
| Tenure | Up to 30 years | For life | 10 years | 5 years | Flexible |
| Taxation | Subject to long-term and short-term capital gains tax, as applicable | Pension taxed as per slab rate | Pension taxed as per slab rate | Interest taxed as per slab rate | Subject to short-term / long-term capital gains as applicable |
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
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