Retirement strategy should be made in such a way that we are financially confident and can stick to our plan to achieve retirement goals.
Retirement Planning: When it comes to retirement planning, not many people give it importance. The sooner you prepare for your retirement, the better it will be for your future. Many people think that retirement planning should be done by those who are nearing retirement or whose age is around sixty years, but thinking like this is not entirely correct. The sooner you start preparing for retirement planning, the better.
Retirement strategy should be made in such a way that we are financially confident and can stick to our plan to achieve retirement goals. Keeping retirement in mind, investments should be made in such places, from where you can get regular income later. In addition, your money remains safe and can be used whenever needed. Here we have told about some better options for investment according to retirement.
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Pradhan Mantri Vay Vandana Yojana (PMVVY)
Pradhan Mantri Vaya Vandana Yojana (PMVVY) exclusively available with Life Insurance Corporation of India (LIC) is a lump sum investment scheme for 10 years. In this, there is an option to receive regular income in the form of pension monthly, quarterly, half-yearly or annually. Anyone above 60 years of age can invest a maximum of Rs 15 lakh (Rs 30 lakh with spouse) in PMVVY. Under PMVVY in FY 22-23, assured pension of 7.40% per annum payable monthly will be available. This rate of pension will be payable for the full policy term of 10 years for all policies purchased up to March 31, 2023.
Senior Citizen Saving Scheme (SCSS)
The Senior Citizen Saving Scheme (SCSS) has a tenure of 5 years, which can be extended for another three years after the maturity of the scheme. An investor can open more than one SCSS account if he wishes, but the investment limit for all the accounts combined is Rs 15 lakh. Currently, the interest rate is 7.4% per annum, payable quarterly and is fully taxable. Investment in SCSS provides tax benefit under section 80C. Premature withdrawal is also allowed under this scheme.
floating rate savings bond
The Floating Rate Saving Bond, 2020 (Taxable) comes with a tenure of seven years. Interest is paid twice a year, on 1st July and 1st January of each year. For floating rate savings bonds, the interest rate is equal to the interest rate on NSC plus 0.35%. The interest rate will keep changing during the tenure of the scheme depending on the interest rate of NSC. There is no upper limit for investing in floating rate savings bonds.
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Post Office Monthly Income Scheme (POMIS) Account
POMIS is a 5-year investment with a maximum limit of Rs 9 lakh under joint ownership and Rs 4.5 lakh under single ownership. The interest rate is determined every quarter and is currently 6.6% per annum, payable monthly. The interest rate remains constant for the entire tenure. The interest earned in POMIS can be credited to the Post Office Savings Account and funds can be transferred to the Recurring Deposit in the same post office.
Bank Fixed Deposit (FD)
Currently, the interest rates on bank fixed deposits (FDs) are around 6.5% and are likely to increase. FD laddering is a better option among fixed deposits. In this, instead of investing the entire amount in one go, it is invested little by little in different tenures. Suppose you have 5 lakh rupees. Instead of investing in one go, you can invest in 5 FDs for different tenures. The maturity period of these five FDs will also be different. Investing in this way will result in sufficient liquidity. Senior citizens get an additional interest of 0.5% per annum on their deposits. For those looking to save tax as well, a five-year tax saving bank FD can be an option to consider.
pension
The Pradhan Mantri Vaya Vandana Yojana purchased in FY 22-23 provides a pension of 7.4% per annum for the full policy term of 10 years. For floating rate savings bonds, the interest rate is equal to the NSC interest rate plus 0.35%. Investment in Senior Citizen Savings Scheme provides tax benefit under section 80C.
(Sunil Dhawan)
www.financialexpress.com
