Many people worry about regular income after retirement. The reason for this is that the salary that comes every month during the job stops after retirement. With age, the ability of a person to work is also not the same as before. On the other hand, the cost of health care increases.
That’s why retirement planning is essential for every person. For this, it would be better to know how much money we will need for our expenses after retirement. After knowing this, we can choose the investment channels. There are many schemes, in which investing can be arranged to meet post-retirement expenses. Let’s know about them.
Senior Citizen Saving Scheme (SCSS)
This is a scheme of the government. Earlier its interest rate was 7.4% annually. On September 29, the government raised the interest rate to 7.6 per cent. This has increased the attractiveness of this scheme. The interest amount in this scheme is paid every quarter. A senior citizen can deposit Rs 15 lakh in this scheme. With this, he will get an interest of more than Rs 1.1 lakh annually. In this, along with the husband, the wife is also allowed to deposit Rs 15 lakh. This will double the interest amount.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
This is also a government scheme. Because of this, investing in it is completely safe. Its interest is 7.4% annually. In this scheme, you can select any option for interest payment in Monthly, Quarterly, Half Yearly and Yearly. A retired person can deposit Rs 15 lakh in this scheme. His wife is also allowed to deposit Rs 15 lakh. There can be an interest income of Rs 2.2 lakh annually on the total deposits of husband and wife.
If SCSS and PMVVY are combined (total deposits of Rs 60 lakhs), a total annual regular income of Rs 4.4 lakhs can be managed. In this way an income of Rs 29,000-30,000 can be earned every month. Investment in Post Office Monthly Income Scheme (POMIS) is also safe. But, its interest rate is only 6.6%. The scheme allows deposits up to Rs 4.5 lakh. So it doesn’t look very attractive.
rbi floating rate bond
It is a very safe investment medium. It is clear from its name that its interest rate keeps on changing. This is 0.35 per cent more than the rate of NSC. Right now it is 7.15 per cent. Interest is paid half yearly. There is no upper limit for investment. It can be a good source for regular income.
Debt funds are also a good option for regular income. It is also safe to invest in it. After putting money in SCSS and PMVVY, some money can also be invested in debt funds. For this, the systematic withdrawal plan of debt funds can be taken advantage of.