look news india
Often we think that after retirement our life will be spent in financial difficulties. The worry of going to office every month will end, but the expenses will remain the same. In such a situation, retirement planning becomes very important. There are many government and private schemes available, in which you can invest and get pension every month. Some schemes give guaranteed returns, while some are linked to the market. But one thing is common in all of them – monthly income. Let's know about 5 such pension schemes:
1. Senior Citizen Savings Scheme Account (SCSS)
This post office scheme offers interest at the rate of 8.20% per annum. The minimum investment amount is Rs 1000 and the maximum amount that can be deposited is Rs 30 lakh. This amount is also deposited in one go. Monthly income is received in the form of interest during five years. Under Section 80C of the Income Tax Act, a deduction of up to Rs 1.5 lakh is available on the deposit amount.
2. Atal Pension Yojana
This scheme is specially designed for senior citizens. Depending on the investment, a monthly pension of Rs 1000 to Rs 5000 is available after the age of 60 years. To avail the benefits of this scheme (Atal Pension Scheme), one has to apply between the age of 18 to 40 years.
3. Post Office Monthly Income Scheme Account (MIS)
This is also a Post Office Monthly Income Scheme. By investing in it together, you can get monthly pension for five years. After five years, the amount deposited is returned. This scheme gives 7.4 percent annual interest which is given every month. The maximum investment amount in this is Rs 9 lakh for an individual and Rs 15 lakh for a couple. A person can get a maximum monthly pension of Rs 5,550 while a couple can get a maximum monthly income of Rs 9,250.
4. Systematic Withdrawal Plan (SWP) in Mutual Funds
Mutual funds also offer monthly income through Systematic Withdrawal Plan (SWP). In this, you invest in a mutual fund and the fund gives you a fixed monthly pension. However, this is a market-linked investment, so if the fund performs poorly you may lose your capital.
5. Fixed Deposit (FD)
Post offices and banks offer fixed deposits (FD) for different periods. You get interest on the amount deposited in FD on a monthly, quarterly, biannual or yearly basis. Apart from this, senior citizens are also usually given 0.25% higher interest rate than ordinary citizens.
