While dealing with the subject of retirement planning, it is assumed that individuals have time on their side and can use the various strategies for planning and conducting their retirement in a better manner. If you are already retired and you are looking for investing in retirement, then what you really need is a retirement solution.
Senior Citizens Savings Scheme (SCSS) – The Scheme is pretty self explanatory as the name describes itself and is dedicated investment option for senior citizens i.e. individuals above 60 years of age and those above 55 years are also permitted to invest subject to fulfilment of certain conditions. In this the minimum investment amount is Rs 1,000 while the upper limit has been capped at Rs 1,500,000.
Post Office Monthly Income Scheme (POMIS) – This one is a popular investment avenue for investors seeking regular income and it is operated from post offices and offers assured monthly income. The minimum investment amount is Rs 1,000, the upper limits been set as Rs 300,000 and Rs 600,000 for single and joint accounts, respectively.
Post Office Time Deposits (POTD)-This is essentially the fixed deposit variant from the small savings segment. POTD offers investors a number of options in terms of investment tenures ranging from 1 year to 5 years. The minimum investment amount is Rs 200 as there is no upper limit on investments and similarly, the returns range from 6.25% to 7.50% on a quarterly compounding basis. Interest payments are made annually.
Monthly Income Plans (MIPs) – In these Investors can choose between the monthly, quarterly, half-yearly and annual dividend options or the growth option and they typically invest 15%-20% of their corpus in equities and the balance in debt instruments. MIPs are equipped to deliver superior returns as compared to its assured return peers and dividends received from MIPs are tax-free in the investor’s hands, albeit a dividend distribution tax has to be borne by the fund house. This is perfect for those Retirees who are not averse to taking on a higher degree of risk can make more allocation to MIPs or even consider adding diversified equity funds to their portfolios. Investing in retirement is always a good option for future security.
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