The post-retirement period is often called the golden years of a person. It is the time to relax, spend quality time with your grandchildren and engage in hobbies. To enjoy retirement, you need to first ensure that there remains a steady income source even after you have left your job. Here investing in certain schemes can be a great option as it can provide you with a regular pension and help you meet various expenses.
Here is the list of five schemes you can invest in to get a stable income post-retirement.
Atal Pension Yojana (APY)
Atal Pension Yojana is a government social security scheme that offers a stable income after retirement. Anyone between the age of 18 and 40 years with a bank account can subscribe to the scheme. Subscribers have the option of receiving a minimum monthly pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000. The pension is paid at the age of 60.
Senior Citizens’ Savings Scheme
This is another government scheme for senior citizens which requires you to deposit a minimum of Rs 1,000 and a maximum of Rs 30 lakh to get regular income and tax benefits. An account can be opened by anyone aged 60 years or above or jointly with spouse. For retired personnel of defence services, they can open an account on attaining the age of 55. By making deposits in the SCSS account, you can claim income tax deductions under Section 80C of the Income Tax Act. The interest in this scheme is payable on a quarterly basis.
Unit Linked Insurance Plan (ULIP)
A Unit Linked Insurance Plan offers benefits of both insurance and investment. Hence, it is the ideal post-retirement scheme for many. Here, the policyholder pays a ccertain amount as premium for life insurance coverage while the rest is invested in debt funds, equity bunds or balanced funds.
Post Office Monthly Income Scheme (POMIS)
A POMIS account can be opened with a minimum deposit of Rs 1,000 and a maximum of Rs 9 lakh. For joint accounts, a maximum of Rs 15 lakh can be deposited. The maturity period of POMIS is five years from the date of opening the account. The interest is paid monthly at 7.4% per annum.
National Pension Scheme
This scheme can also provide a regular income after retirement. A unique Permanent Retirement Account Number (PRAN) is given to each subscriber of this scheme. You can open two types of accounts under this scheme namely Tier 1 and Tier 2. You have to make a minimum contribution of Rs 500 in Tier 1 account and Rs 1,000 if you open a Tier 2 account. You can claim deductions under Section 80CCD of the Income Tax Act in Tier 1 for contributions made in the Tier 1 account but no such benefit is available in Tier 2 account.
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