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Retirement is truly called the golden age because it’s that time of your life when you’re done working hard and wish to reap its benefits now. Travel, business, or simply enjoying the yield (savings) of your effort all these years – the choice is purely yours. And yes, there is the added advantage of earning a regular income post-retirement by way of investment schemes. The government of India has launched several investment options for senior citizens, which are provided by a number of insurance companies in the country.
This blog details the 5 best investment plan and senior citizen saving schemes 2023 that can ensure stable and regular income for them even after retirement.
|Investment Option||Returns||Investment Amount|
|Pradhan Mantri Vaya Vandana Yojana (PMVVY)||7.4% p.a.||Min Rs. 1,50,000|
|Senior Citizen Fixed Deposits (FD)||3% – 7% p.a.||Varies between banks|
|Senior Citizens Savings Scheme (SCSS)||7.6% p.a.||Min Rs. 1,000|
|Post Office Monthly Income Scheme (POMIS)||6.60% p.a.||Min Rs. 1,500|
|National Pension Plan||8% to 10% p.a.||Rs 500 per month or Rs 1,000 p.a.|
|Tax-Free Bond||5.5%-6.5% p.a.||NA|
|Mutual Funds||10% – 15% p.a Market Linked||Rs.100|
This is one of the best investment options for seniors in India that was launched in 2017 by Life Insurance Corporation (LIC) of India. The scheme also serves as a pension plan ensuring a fixed amount of income to the elderly after they have chosen to invest a lump sum amount in the scheme.
The scheme is exclusive to only senior citizens aged 60 years and more, with no maximum age limit. Also, it is valid only for citizens of India and not NRIs.
Initially launched for 3 years, this plan has now been extended for 3 more years and will be valid up to March 31, 2023.
Fixed deposits have always been the most preferred form of investment options in India for a large number of people. The elderly of the country too find it a safe bet, considering that the interest payout can be chosen to be monthly, quarterly, half-yearly, or annual. The scheme is meant for senior citizens who are 60 years and above.
The Fixed Deposit Scheme for Senior Citizens is applicable to both Indian citizens and NRIs over 60 years old. Besides, some banks and financial institutions also permit people over 55 years old to apply for this scheme, provided they have opted for early voluntary retirement.
Senior citizens can open a Fixed Deposit at a bank of their choice with a minimum investment of Rs. 5,000 (in case of online) and Rs. 10,000 (if opening an FD at a physical bank branch). The maximum limit for investment under this scheme varies from bank to bank, not exceeding Rs. 2 crore though.
Yet another of the best investment options in India for the elderly population, this scheme has been offered by the Indian government since 2004. It is also usually regarded as one among the safe investment options in India, owing to its backing by the central government. Hence, there is no risk involved in this investment plan and 100% income assured to the investor throughout the term of the plan.
All senior citizens 60 years and over are eligible for the SCSS; however, not NRIs. Besides, those aged between 55 and 60 years of age can only apply if they have chosen VRS or are retired from the Indian defense forces.
Minimum investment of Rs. 1,000 and maximum of Rs. 15 lakh
Maximum tenure of the scheme is 5 years, with the option for further extension of up to 3 years more. However, this can only be done one time.
Yet another safe investment option with considerably lower risk involved for the elderly. This scheme is backed by the Finance Ministry and guarantees a fixed amount of interest to the senior citizens every month. This is why this scheme is highly preferred by the elderly citizens for the time post retirement.
This scheme is slightly different from the others mentioned in this post because it is not exclusively meant for only senior citizens. Any person 10 years old and above stands eligible to opt for this plan. The application process is also fairly simple, which can be completed at a post office near you.
The minimum amount required to open an account at the Post Office is only Rs 1,500, which makes it highly favorable among the rural population as well. The maximum limit for investment is Rs. 4.5 lakh.
The scheme demands an investment for at least 5 years.
This scheme is open for all employees from the public and commercial sectors who can choose to invest in a pension account to enjoy its benefits post their retirement. The plan allows for withdrawal of a certain amount after retirement. The remainder is paid out as a pension every month.
The scheme was initially launched for only the employees of the central government; however, now all residents of India can apply for this plan.
The retirement phase is one of relaxation but can also become a cause for worry, especially over the loss of stable income. Hence, the investment options detailed in this post can help senior citizens enjoy this stage without a hassle. One of the prime advantages of choosing these investment plans for retirement is that they offer fixed and assured returns to the investor throughout the term of the scheme. This allows the elderly to fulfill all their ambitions and aspirations post retirement without a worry. However, make sure to check the details of each plan before investing in it. The details of all these schemes are easily available online.
There are various investment options available for senior citizens in India but here we are listing the top 5 investment plans 2023 for senior citizens -
#1. Pradhan Mantri Vaya Vandana Yojana
#2. Senior Citizen Fixed Deposits
#3. Senior Citizen Savings Scheme
#4. Post Office Monthly Income Scheme
#5. National Pension Plan
A person between the age of 60 years to 80 years is considered a senior citizen and is eligible for senior citizen schemes (SCSS).
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