Which Are The Best Senior Citizen Schemes In India?

Senior persons, especially those who have not enrolled in any pension system, require monthly allowances to manage their expenses and care for their family after retirement. The majority of senior folks choose risk-free monthly income programmes with significant returns. As a result, there are a plethora of customised monthly income programmes for elderly folks available in the investing market today, allowing them to age gracefully and without financial stress.
Health insurers are introducing newer and better plans with enticing features in response to changes in the Indian health industry. While senior citizens' health insurance plans were not accessible just a few years ago, more and more insurance firms are now providing them. To know more about the senior citizen pension schemes in India, read on.

Best Senior Citizen Schemes In India

Following are some of the listed senior citizen schemes in India -

Fixed Deposits In Banks

For older adults, bank fixed deposits are the most convenient and secure source of income. People have been drawn to it because of its risk-free nature, which allows them to pick a reasonable interest rate that is adjustable and varies from one bank to the next. On senior citizens bank fixed deposits, the majority of frontline commercial banks are giving a 6% interest rate. Senior persons in the nation are entitled for extra deposits on deposits of five years or more. Additional special deposits are being offered by banks such as the State Bank of India, HDFC Banks, and ICICI Bank on fixed deposits of more than five years.

Fixed Deposits And Recurring Deposits In Post Office

Fixed and recurring deposits at post offices work similarly to those in banks, with the exception that they are more safe because the money is directly picked up by the government, leaving no chance for default. But, much like any commercial bank, we have permanent deposits and recurring deposits that are only insured up to INR 5 lakhs.

Pradhan Mantri Vaya Vandana Yojana

The Government of India has supported this as one of the greatest investment plans for older folks in the country. A citizen must be 60 years old to participate in this government programme. The programme has a ten-year policy period and a maximum investment limit of INR 15 lakhs per elderly adult. For policies that have been successfully sold for that year, assured rates of pensions will be granted, according to the system.

Senior Citizen Savings Scheme

This programme provides a monthly stipend to older individuals over the age of 60. This technique may be used at both banks and post offices. Because it provides different tax benefits and a nomination option, the Elderly Persons' Saving Scheme has been one of the greatest investment programmes for senior citizens. For a maximum investment of INR 15 lakhs, the term is set at five years. The interest you earn on your investment is taxed, but you may extend the term of your account for another three years after it matures.

Tax Free Government Bonds

One of the safest monthly income alternatives for older adults is a tax-free government bond. They're risk-free because the government will pay them back. The bond's length might range anywhere from 5 to 20 years. At the moment, the interest rate is between 7% and 7.5 percent. It may not be particularly profitable during the economic recession because the interest rate is not set. INR 15 lakhs is the maximum amount that may be invested.

Endnotes

To conclude, research suggests that in a few generations, human life might be extended much beyond 100 years. According to statistics, Indians live for an average of 70.8 years. As a result, an individual must prepare ahead of time, assess all of their own life goals, and budget for the accompanying costs. Years of hard work must be followed by years of rest and renewal. As a cherry on top, retirement savings in the finest senior citizens plans give just that. It assures that a person would retire happily from work but not from life.

Also read- Is Pension Plan Better Than PPF For The Elderly?

Understand The Difference Between Types Of Annuities In India

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.