Post-Retirement Financial Options in India

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Post-Retirement Financial Options in India: A Comprehensive Guide

𝙿𝚘𝚜𝚝 𝚛𝚎𝚝𝚒𝚛𝚎𝚖𝚎𝚗𝚝

Retirement is a time to relax and enjoy the fruits of your labor. However, it’s also a time when you need to be financially prepared to ensure that you can maintain your lifestyle without a steady income from work. In India, there are several options available for post-retirement financial planning. In this blog post, we’ll take a closer look at some of the most popular options and their pros and cons.

Government of India bonds (GSecs): One option that is relatively less explored is buying government bonds for their interest payouts, which could serve as a pension for retired individuals. These bonds are issued by the Government of India to raise funds and are considered to be a safe investment option as they are backed by the government.

Senior citizen savings scheme (SCSS): This is a popular option for retired individuals looking for regular income. It is a government-run scheme that offers a fixed interest rate of 7.4% per year, which is paid out quarterly. The scheme is considered to be safe as it is backed by the government, but it’s important to note that the interest earned is taxable.

Pradhan Mantri Vaya Vandana Yojana (PMVVY): This pension scheme is designed for senior citizens aged 60 years and above. It offers an assured return of 7.4% per annum, payable monthly for 10 years. The scheme can be purchased offline as well as online through Life Insurance Corporation (LIC) of India.

RBI floating rate savings bond: This bond is issued by the Reserve Bank of India (RBI) and offers a floating interest rate, which is linked to the National Saving Certificate (NSC) rate with a spread of 35 basis points over the respective NSC rate. This means that the interest rate on the bond will change in line with changes in the NSC rate.

Fixed deposits of AAA-rated NBFCs: Non-banking finance companies (NBFCs) that have been rated AAA by credit rating agencies offer fixed deposits with varying interest rates depending on the tenure and the NBFC. These deposits are considered to be safe investments as they carry the highest credit rating.

Immediate annuity plans of insurance companies: An immediate annuity plan is a product offered by insurance companies where you pay a lump sum amount to the insurance company and in return, receive a regular income (monthly, quarterly, half-yearly or annually) for the rest of your life. The amount of income received depends on factors such as your age, the amount invested and the annuity option chosen.

Each of these options has its own pros and cons, so it’s important to carefully consider your individual needs and circumstances before making a decision. By planning ahead and choosing the right post-retirement financial options, you can ensure that you have a steady stream of income to support you during your golden years.

I hope this information helps you make an informed decision about your post-retirement financial planning!

Deals of the Day

𝙰𝚕𝚜𝚘 𝚁𝚎𝚊𝚍:

𝙱𝚎𝚜𝚝 𝚜𝚝𝚘𝚌𝚔 𝚋𝚛𝚘𝚔𝚎𝚛𝚜 𝚒𝚗 𝙸𝚗𝚍𝚒𝚊

𝗕𝗲𝘀𝘁 𝗹𝗶𝗳𝗲𝘁𝗶𝗺𝗲 𝗳𝗿𝗲𝗲 𝗰𝗿𝗲𝗱𝗶𝘁 𝗰𝗮𝗿𝗱𝘀

𝗕𝗲𝘁𝘁𝗲𝗿 𝘄𝗮𝘆𝘀 𝗳𝗼𝗿 𝗯𝗲𝘁𝘁𝗲𝗿 𝗹𝗶𝗳𝗲

𝗩𝗮𝗻 𝗹𝗶𝗳𝗲 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀

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