Retirement is a phase of life which needs a satisfaction and a secure daily life. This represents the whole work life that an individual has gone through. Financial security of any retirees is much important no matter what they are, a pensioner, self-employed or a businessman. Today, we are going to discuss about the various risk-free investments for the pensioners/senior citizens updated as of January 2023. Please feel free to drop comments in case of any questions and our team will get back immediately with the assistance.
Given below are some of the risk- free investments that a senior citizen must consider to get a secure amount.
1. Pradhana mantra Vaya Vandana Yojana:It was launched in 2019 to provide senior citizens a proper consistent source of income. For the current financial year, the last date for the application is March – 2023. This is being sponsored by Life insurance corporation (LIC), the largest insurer of the country.
Some bullet points about the scheme:
· Should be over 60 to apply.
· Maximum of 15 lakhs investment
· A lumpsum amount must be invested in the scheme.
· Whopping 7.4% interest rate last year
Depending on the lumpsum invested, you would receive the pre-defined pension per month.
The only negative point of this scheme is that the amount invested in this scheme does not qualify under section 80C of the income tax, though it is GST exempt.
2. National Pension System (NPS)
NPS is being managed by protean, headed by Padmaja Chundru, the former MD and CEO of Indian Bank. This is an all citizen program. Here, the tax benefit of upto 1.5 lakhs can be claimed.
3. Public Provident Fund (PPF)
The maximum investment under this scheme is 1.5 lakhs per year now, talks and rumours are there that it would be increased in the near future. The current interest rate here is 7.1%. Minimum amount of investment is as low as 500 /- per year. But, there will be a lockin period of 15 years and later on, it will be continued for 5 years lock-in.
4. Equity linked Saving Scheme (ELSS)
This is one of the saving investments in mutual funds. Compared to all other types of saving investment, this is riskier as it is directly linked with the market conditions. But, on the other hand, it could turn as the biggest return as well. Returns always come with risk as they say. Under section 80C, ELSS are excempt under the income tax act 1961.
5. Fixed Deposits and Recurring Deposits:
This is one of the easiest way of investment which most of the old age pensioners believe in. Some of the public sector banks offer very high rate of interest exclusively for senior citizens for these FDs of upto 7.5 % as of January 2023. This is claimed under 80C of the Income tax. Customer may also need to submit 15G/H accordingly to sneak through the TDS deduction if they are really eligible for the same.
6. Bonds and Debentures:
Pensioners/Retirees who have an idea about the bonds can go ahead with the investments as they come with very less risks too. These returns are regular and helps in the daily life expenses.
To sum up, any retiree/pensioner wants to spend a tension free retirement life. People likes to avoid the risk free regular income at that age. So, we have helped through this article to help them accordingly. Feel free to drop an email/comment in case of any questions.