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After achieving all the milestones of your life, be it getting the best of education, landing that dream job, getting married to your better half and starting your own family watching your children grow, it has to be one of the most rewarding experiences life has to offer.
Although, what happens when now you get to experience the glorious golden years to enjoy in peace and tranquilly? It’s wonderful to be at this wonderful stage of life, but it’s also critical to identify the best investment options for senior citizens to maintain their financial security.
This post will discuss the best investment plan for senior citizens in 2022 to assist you in your search and make the best decision possible.
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is one of the best investment plans for senior citizens in 2022. It provides benefits for both retirement and pension under a single umbrella. The program is controlled and operated by the Life Insurance Corporation (LIC), which is under the control of the government. PMVYY provides a guaranteed return. The system will be in place for ten years. The scheme’s members must be at least 60 years old, with the upper and lower limits deposit amounts being ₹1,50,000 and ₹15,00,000.
SCSS is the best investment option for senior citizens looking for a long-term savings account that offers security and other benefits. Across the country, the plan is offered at post offices and authorised banks. This plan gives a higher interest rate than traditional savings and fixed deposit bank accounts, but it also offers tax benefits of up to ₹1.5 lakh a year under Section 80C of the Income Tax Act, 1961. SCSS has a five-year time to maturity with a three-year extension available. It offers a 7.4% interest rate for the very first quarter of the fiscal year 2021-22.
Traditional investing products for senior citizens include fixed deposits (FDs). Since they provide a guaranteed return, bank fixed deposits are the most popular investment choice. Also, because returns are assured in the form of investment, these are perceived as low-risk investment options for senior citizens. The interest rate on FDs varies between 3% and 7%. Furthermore, older folks receive a special FD interest rate from banks. Therefore, senior adults might earn up to 0.5% more interest on their fixed deposits. A bank FD calculator may determine prospective profits from bank FD investments.
Senior people have the option of setting their interest payment periods. In addition, they can receive interest payments regularly or at maturity.
The Finance Ministry is in charge of the Post Office Monthly Income Scheme. This senior citizen investing option provides a set monthly interest rate. This low-risk monthly income plan provides significant capital protection during the early years after retirement.
As of June 2021, the interest rate on the Post Office MIS programme is 6.6% per year, and it adjusts every quarter. Though not as high as SCSS or PMVVY, it is important to remember that in today’s market, this is considered a healthy rate of interest.
Tax-free bonds are issued by government infrastructure organizations like Housing and Development, NHAI, NTPC Limited, and Indian Railways Finance Corporation. The bond has a maturity of almost ten years. The asset is also subject to a lock-in period till maturity. The interest rate on these bonds ranges from 5.5% to 6.5% in the world of investment options for senior citizens.
After discussing all the best investment plans for senior citizens in 2022, we hope you find it easy to choose the right option for yourself and make the best choice.
In this policy, the investment risk in the investment portfolio is borne by the policyholder.