Retired people, after starting the second innings of their life, look out for steady regular income from their investments.
Retired people, after starting the second innings of their life, look out for steady regular income from their investments. Thanks to the Government of India, there are many schemes which can be a big source for the retired person to earn a regular flow of income. Here are the top 3 investment options that can ensure a regular monthly income for you post-retirement life.
Pradhan Mantri Vaya Vandana Yojana:
PMVVY is a scheme which offers a guaranteed return rate of 8 per cent to the subscribers. The government scheme is operated by Life Insurance Corporation (LIC). In the 2018 budget presented by Finance Minister Arun Jaitley, it was proposed that the investment limit be increased from Rs 7.5 lakh to Rs 15 lakh. He also proposed to extend the Pradhan Mantri Vaya Vandana (PMVVY) scheme till March 2020.
PMVVY offers a return of 8 per cent per annum payable monthly for 10 years. According to a NDTV report, the pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly mode as chosen by the pensioner at the time of purchase. Subscribers will get a maximum of Rs 5,000 every month post-retirement while the minimum pension amount is Rs 1,000.
Monthly Income Scheme (MIS):
The scheme is offered by the Department of Posts and currently provides an interest rate of 7.3 per cent per year, payable monthly. Under the Post Office Monthly Income Scheme, the interest is paid every month starting from the date of the deposit. The maximum investment limit is Rs 4.5 lakh while it is Rs 9 lakh in a joint account. The maturity period for the scheme is five years.
Senior Citizen Savings Scheme:
The scheme is for individuals who are 60 or above years old. The scheme is also valid for people who are 55-year old and retired under voluntary retirement scheme (VRS) and for defence personnel who were 50 at the time of retirement. The maximum a subscriber can invest is Rs 15 lakh at an interest rate of 8.3 per cent.