In earlier times, senior citizens used to be dependent on their children for financial needs. But this is changing.

6 investment options for the retired

Rising income, better investment opportunities, and financial awareness have made it possible for senior citizens to be financially independent. Many of them are able to fund their lifestyle using their savings and investment income. But with inflation, increasing longevity and rising cost of medical care, senior citizens should continue to look for avenues of income.

The government provides some investment options and benefits for senior citizens. As a senior citizen, you should take advantage of the same so that you have financial independence.

6 investment options for the retired

First, let us look at the investment options for senior citizens. Are you ready for your Retirement? Image courtesy of Sira Anamwong at FreeDigitalPhotos. Eligibility — Persons equal or over the age of 60 can invest.

Voluntary retirees can invest once they are 55 years old. One can open an additional account as a joint account with the spouse. Investment Limit — Maximum of Rs. Benefits — Current rate of interest is 8.

It is market linked based on 5-year government bond yield. Interest is paid quarterly. The interest rate is locked once the investment is done. Premature closing of account is possible. Investment can be treated as the deduction under Section 80C. The 3 Stages Of Retirement. The annuity is slightly higher if the frequency of payouts is monthly or quarterly. Monthly pay-outs are possible. Premature withdrawal is possible though one has to pay a penalty.

Amount received at maturity can be reinvested in POMIS. Limitations — It is relatively illiquid compared to other options. The pension is taxable. There are other pension plans available offered by private players. The annuity rate is lower but there is no upper limit on how much one can pay for an annuity.

They are available for different durations and most of them do not allow premature surrender. Best Medical Insurance for Parents. Benefits — Fixed monthly interest rate — 7. The amount received at maturity can be reinvested in POMIS. Limitations — Investment is not tax deductible. Interest earned is taxable. NRIs cannot invest in this product.

Bank FDs are the oldest and popular form of saving among senior citizens. One can invest money in company deposits for interest returns.

The rate of interest is usually higher than Bank FD interest rates. Eligibility — Banks are allowed to set the age limit for opening accounts. Most banks allow people, 10 years or older to open a sole account and a joint account if younger than 10 years. Benefits — Most banks offer interest rate up to 0. Some corporate deposits offer higher returns to senior citizens. Limitations — Interest rates are going down.

FDs will not be able to beat inflation.

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Company FDs carry higher risk. It is better to invest in companies rated AA and above. Interest earned is fully taxable based on the tax slab you fall under. There are no specific mutual fund investment schemes for senior citizens. Depending on the risk appetite, senior citizens can invest some amount in Mutual funds. They can choose mutual funds that have a lower risk.

Debt funds, liquid funds etc. Benefits — Well performing funds give returns that can beat inflation. They are managed by professionals so there is better management and less chance of losses.

They provide capital appreciation. Monthly Income Plans give regular income too. One can withdraw money from Liquid funds very easily. Limitations — Subject to market risks.

Investment Options for Senior Citizens in India are limited in India — other benifits are even lesser. Here are some of the benefits that you should take advantage of if you are a senior citizen —. When you are not ready for your retirement ….

Senior citizens deserve to be treated with compassion and concern and therefore some organizations and the government provide certain facilities to them so that their sunset years are easier. Do you believe in - An apple a day keeps the doctor away? Similarly, TFL Guide is your weekly apple, keeping you financially fit.

Subscribe now and get Basics of Financial Planning E-Course FREE. NOT DEDUCTED IN SUCH PAYMENTS? Thanking You, ANJAN ARORA. Senior Citizens Pension Plan Varistha Pension Bima Yojana — It is an annuity plan wherein payouts are made periodically to the policy holder. Has this started already by LIC or still to be started? Many thanks for the information in this mail I am a senior citizen age I have invested in following funds the return is in dividend form and it is tax free.

Reliance regular saving balanced fund -qurterly dividend -gives 8.

How to Invest Retirement Money in India? - idonayojujid.web.fc2.com

These are some really good investment options for senior citizen, Thanks for sharing the information! Notify me of followup comments via e-mail. Notify me of follow-up comments by email. Notify me of new posts by email. Effect of demonetisation on NRIs and OCI. Site designed by ThesisCustomizationservice.

Best Investment Options for Senior Citizens in India by Hemant Beniwal in Financial Planning , Investment Options , Investment Planning. Limitations — Interest rate might decline. The 3 Stages Of Retirement Senior Citizens Pension Plan Varistha Pension Bima Yojana It is an annuity plan wherein payouts are made periodically to the policy holder.

Eligibility — Anyone who is 60 years or older can invest. Best Medical Insurance for Parents Post Office Monthly Income Scheme POMIS Eligibility — Anyone who is 10 years or older can invest. Bank and Company Deposits Bank FDs are the oldest and popular form of saving among senior citizens.

Here are some of the benefits that you should take advantage of if you are a senior citizen — Tax benefits — There are tax exemptions and tax benefits provided to senior citizens. Tickets — There are special offers for senior citizens when it comes to rail and air tickets.

People above 45 years will be allocated lower berths. Wheelchairs and separate counters in Passenger Reservation Areas are provided. There are special provisions for air travel as well.

This is valid for domestic travel. Other Facilities — Senior citizens need not fix an appointment for applying for a passport. They can walk-in and will be given preference in terms of waiting time.

They are given discount in MTNL phone bills and priority hearing in high court. Some hospitals give discount on medical treatment for them. When you are not ready for your retirement … Senior citizens deserve to be treated with compassion and concern and therefore some organizations and the government provide certain facilities to them so that their sunset years are easier.

More from my site LIC Varishta Pension Bima Yojana — Review The 3 Stages Of Retirement 5 Steps for Happy Retirement I am too Young to Plan my Retirement is a Myth 10 big Lies that skew Retirement Planning. Subscribe for TFL Weekly Guide Do you believe in - An apple a day keeps the doctor away?

DB DESAI March 3, , 6: Please check the interest rates on various options. Hemant Beniwal March 6, , 2: Venkateswaran Venkatesh March 6, , 5: KIRAN PAREKH March 22, , 2: Hemant Ji, Many thanks for the information in this mail I am a senior citizen age Rishika March 23, , Join us Subscribe the free newsletters Susbscribe: Popular Posts Let us Make Sense of the Sensex and Nifty.

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Information provided on this website is general in nature and does not constitute financial advice. Financial Planning Posts 5 Steps for Happy Retirement Best Investment Options for Senior Citizens in India The 3 Stages Of Retirement Education Costs — Are You Ready?

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