Retirement marks a turning point in a person’s life. The routine life that one has undergone for so long is set to change forever. All those years that you had worked to save for retirement finally arrives and marks the end of your career, but does it? Not for everyone though some retirees choose to take their careers in a different direction. But for others? Retirement means focussing on getting a regular stream of income while keeping tax liability at bay and investing in the right Senior Citizen Savings Scheme in India. The main hurdle that most retirees face is that though they retire at 58 or 60 the life expectancy can be stretched to 80 and above. So the main issue is making a financial planning for seniors which can ensure a fixed income every month and pay more than your monthly expenses.
Senior Citizen Financial Planning – Important Investment Options
Here is one senior citizen financial planning options for you to explore to fulfill your monthly requirements and some more, The Senior Citizens’ Savings Schemes (SCSS) caters perfectly to your needs: You should go for financial plan for senior citizens, once you retire. The requirements are, you need to be at least 60 years old and more to go for such a scheme. Your money will progressively increase especially when you invest in this scheme for a long time. Try the Post office or the Bank to apply for these schemes.
Senior Citizens’ Saving Scheme (SCSS)
Senior citizens must include the senior citizens saving scheme in their investment portfolios. The name should give you an idea that this scheme is suitable for the senior citizens only. Avail this scheme either from the post office or the bank. The SCSS, although has a five-year tenure, it can be stretched to three years as the scheme matures. 8.6 percent per annum is the interest rate of SCSS which you can pay quarterly and it is fully taxable. You can invest as much as 15 lakh and for that, you may open more than one account. You can enjoy tax benefits too from this scheme and you can also withdraw it prematurely.
You can open SCSS account in any of the authorized banks or post office branch across India with these following documents:
- Fill the Form A for opening SCSS Account.
- Get ready with all the required documents such as Identity proof such as PAN card, Passport.
- Keep the address proof at hand such as Telephone bill, Aadhar card.
- Age Proof Document is very important to procure such as Senior citizen card, Passport, a Birth certificate issued Corporation or registrar of births and death, Voter ID card, PAN card and so on.
- 2 Passport size photographs.
Ensure all the above documents are self-attested.
So have you started your senior citizen financial planning? Not yet? You need to start as soon as possible to make sure you enjoy your post-retirement years to the full extent! Try the above financial planning for senior citizens and let us know what worked for you and what did not in the comments section below.