There are always mixed feelings during retirement parties, ranging from happiness and nostalgia to fear about the future. We can't wait to see our friends and family again. The question of what to do next and how to have a steady income after retirement is also a cause of stress for us.
If you're 60 or older, you can definitely relate to this, but if you're not, you should better plan your future by arranging your money well in advance and ensuring an independent and stress-free existence, because you're not one of us. Furthermore, no one like taking chances at this point in their lives. As a result, we all seek for the most risk-averse financial possibilities. Some risk-free investments for the elderly are as follows:
Fixed Deposits:
If you want to keep your money in the bank for an extended length of time, you can use this deposit product. As a result, banks will pay you interest on the money you've deposited. This interest rate is set in stone and does not fluctuate in response to changes in the market. As a result, your earnings are safe. You may also start a Fixed Deposit account by depositing just INR 1,000. In the event of an emergency, the sum can be withdrawn at any time.
Securing a fixed deposit as a senior person provides significant advantages. You don't have to pay taxes on your profits, you earn more interest, and you may avoid tax payments by filling out numerous forms like 15G, 15H, etc. with a tax-saving Fixed Deposit.
Investing in a retirement savings plan for the Seniors:
Savings accounts with high interest rates are available through this programme. You may deposit as little as INR 500 to as much as INR 15 lakh, therefore there is no minimum deposit amount. This plan has no risk and is extremely simple to implement.
Tax-Free Bonds:
Government bonds are another viable investment choice. These bonds can be purchased by seniors, who will earn interest on them. These bonds are tax-free and have the lowest risk because the government will have to pay them back. You may put up a maximum of INR 10 lakhs here for a period of two years.
Pension Schemes:
A pension plan can provide you with monthly income, but deciding whether or not to obtain one is up to you; if you haven't decided on a pension plan yet, you should. Using this, you may either deposit all of your money at once or deposit a modest amount at a time, as you like. The amount you deposit will be used to calculate your pension. EPF and PPFs are examples of pension programmes. After a few years of contributing a portion of your pay to these accounts, you are eligible to withdraw the benefits you've accrued.
Post-office Monthly Income Scheme/National Savings Certificate:
If you participate in this programme, you can earn interest on your savings by depositing them in a post office account. These certificates may be purchased in multiples of INR 100 per month for five years and earn interest on it. You're protected against market fluctuations with this plan, which is similar to a fixed deposit. However, your profits would be taxed under this plan.
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