Four Savings Options For Senior Citizens

Here are four savings options for senior citizens that are popular and safe.

After retirement, senior citizens often look at safe and well-regarded investment schemes to put their retirement corpus in and meet their regular income needs. We put together four savings options for senior citizens that are considered safe bets.

1. Post office monthly income scheme (MIS): This is a popular investment scheme where you can invest a particular sum and get an assured monthly income in the form of interest. The maximum investment limit is Rs 4.5 lakh in a single account and Rs 9 lakh in a joint account. An individual can invest maximum Rs 4.5 lakh in MIS (including his share in joint accounts). The interest rate is 7.3 per cent per annum. The maturity period the scheme is five years and it can be prematurely closed after one year. To know more, read https://www.indiapost.gov.in/Financial/Pages/Content/Post-Office-Saving-Schemes.aspx

2. Senior Citizen Savings Scheme (SCSS): Senior Citizen Saving Scheme is available to senior citizens only. It is a five-year deposit plan with nationalized banks and post-offices. An individual of 60 and above can invest in it as can early retirees between 55 and 60 years of age, who have opted for the voluntary retirement scheme. The interest rate is currently at 8.6 % per annum. A senior citizen can invest in this scheme by opening either an individual or a joint account with a post office or a scheduled commercial bank and invest up to Rs 15 lakh (in multiples of Rs 1,000) only. The amount invested in the scheme also cannot exceed the money one receives on retirement. In others words, you can invest either Rs 15 lakh or the amount received as your retirement benefit, whichever happens to be lower. Read more at https://www.sbi.co.in/portal/web/govt-banking/senior-citizens

3. LIC’s Varishth Pension Beema Yojna: Launched in 2017 the maximum amount that can be invested in this scheme is limited to Rs. 7.5 Lakh per senior citizen. The finance minister has proposed to increase this amount to Rs.15 lakh per senior citizen during the 2018 budget. The scheme does not need a medical check-up requirement and is an immediate annuity plan. You can find more details here: https://www.licindia.in/Products/Withdrawn-Plans/VARISHTHA-PENSION-BIMA-YOJANA-(UIN-512G291V01)

4. Varishth Mediclaim Policy: This has been launched by National Insurance Company for providing health Insurance coverage to senior citizens between 60-80 years. Maximum coverage for hospitalization expenses is Rs. 1 lakh per senior citizen and extends to Rs. 2 lakh for critical illness per senior citizen. The policy can be renewed till the insured senior is 90 years of age. Plan benefits include cost of medicine, drugs, blood, oxygen, diagnostic charges and emergency ambulance charges up to Rs.1,000. To find more details read: https://irdai.gov.in/ADMINCMS/cms/Uploadedfiles/NATIONAL15/VARISTHA%20Mediclaim%20for%20Senior%20Citizens%20Policy.pdf/