Investment Schemes to Make Your Parents Retirement SecurePosted by Arwind Sharma on May 30th, 2019 If you wish to do something fruitful for your parents, make their retirement secure by investing in a good investment scheme. When we say a good investment scheme it means a plan that requires a nominal amount for investment, yields higher returns compared to other schemes and has minimum risk. Moreover, being senior citizens your parents are eligible for many additional benefits offered by various banks and finance companies. Mentioned here are different investment schemes to make your parents' retirement secure, stable and financially sound. Pradhan Mantri Vaya Vandana Yojana (PMVVY)It is a recently launched investment scheme, and quite promising when it comes to assuring financial security to the elderly. Backed by the government of India, the scheme provides a guaranteed return of 8% annually for ten years. For a minimum amount of Rs.1,50,000, you will earn a monthly pension of Rs.1000. In short, it enables security and stability for the retirees through assured pension linked to the subscription amount based on the government guarantee to Life Insurance Corporation of India (LIC). You, as a subscriber, can choose the payment period as per your financial requirements. Based on this period, you will be paid a pension on a monthly, quarterly, half-yearly or yearly basis. Benefits
Fixed Deposits (FD)For those who have been seasoned investors know quite well that fixed deposit as an investment option is quite sought after. It is a perfect investment tool for those who wish for safety, stability and high returns. You can invest an amount as low as Rs.25000 and avail 0.25% higher return compared to regular FDs. Although the facility of FD is available at banks and financial companies, it is advisable to go with the company fixed deposit (CDR) as the Interest rates on FD they offer are higher. For instance, Bajaj Finance understands the needs, thereby providing a higher FD rate for senior citizens and online account opening just three simple application steps. Early investment in fixed deposit for senior citizen ensures enough funds for retirement without liquidating assets or savings Benefits
Post Office Monthly Income Scheme (POMIS)It is an investment scheme that will take care of your parents’ monthly expenses even after their retirement. You can invest a certain amount in a post office and earn monthly interest on it. For an investment period of five years, you can invest up to 4.5 lakhs individually and up to 9 lakh jointly. However, you can start by investing a small amount of Rs.1500. On maturity, you can either withdraw the amount or re-invest it for another five years to avail more benefits. Due to the fixed income scheme, the rate of interest is not subject to change as per market trends. Hence, once invested you, there is no risk involved. Benefits
Senior Citizen Savings Scheme (SCSS)People of 60 years or above can invest is Senior Citizen Savings Scheme (SCSS), a highly popular investment option for retirees and senior citizens. The investment in SCSS can be done through banks, post offices or financial companies. Although the tenor of the scheme is five years, you can extend it by three years on maturity. You can invest up to Rs.15 lakh at a higher rate of interest. Soon you can earn the interest on a quarterly basis, making it one of the active sources of income post retirement. The important benefit of this scheme is that the investment is eligible for tax benefits under Section 80C of the Income Tax Act. Also, it allows for premature withdrawal during an urgent requirement of money. Benefits
Securing and stabilizing your parents’ retirement life will bring a lot of positivity and independence in their life. Hence, start investing today to accumulate a sizeable corpus for them. Like it? Share it! More by this author |