Senior Citizen Savings Scheme - How it Takes Care of your Finances

When it comes to retirement planning, the best thing to do is start early. Your investment will have a great impact on your life when you need it most. This is the time when your salary stops being credited to your bank account. So, the best way to plan your finances is to start early. A proper planning will help you save money for your future and for emergency situations. 

Reliable Retirement Plans – Secure Your Future

Check out some of the below-mentioned retirement plans, which will help you garner the right funds when the time is ripe. 

•ELSS funds: The equity-linked mutual funds is what everyone is investing in for higher returns and ELSS scheme is really lucrative as it has the lowest lock-in period, only 3 years. It is a good option for you to try as it helps beat inflation and ensures good returns, as they invest in stock markets. Another key feature of ELSS funds is they only become tax-free after you hold them for more than a year.

•Public Provident Fund (PPF): This is a very popular tax-saving investment. There are more advantages to this scheme as it offers guaranteed returns, it becomes tax-free as it matures and it shields your capital too. The only disadvantage is its long lock-in period, it is 15 years.

•National Pension System (NPS): This is an equity-based scheme and the maximum exposure to equity is 50%. The disadvantage of the NPS is that you can withdraw the money only after you retire retirement and it is fully taxable. Also, you have to use a mammoth portion of your corpus, read 40% to buy the annuity after your retirement. 

•Tax-saving fixed deposits:  These works for most retired persons as it has a lock-in period of five years and offers great returns besides offering capital protection.

Besides the retirement planning schemes, discussed above there are also Senior Citizens’ Savings Scheme. This investment is suitable for seniors who are either equal to or are over the age of 60. Voluntary retirees can also invest in it as they reach the age of 55. You can open a joint account with your wife. The uppermost limit is Rs. 15, 00,000 and it does not matter how many accounts you have. The current rate of interest is 8.5%. The interest is paid quarterly. 

 So amongst a plethora of retirement plans, which one should you choose? Whatever you choose you to have to realize that you need diversification and your future should be secure and the Senior Citizen’s Savings Scheme offers just that.