If you want to spend your old age well, then you will need to make arrangements for regular income along with a large lump sum amount. A large amount will secure your old age, while the monthly income will easily fulfill your daily needs. In such a situation, you do not need to depend on anyone. Know here about 5 such schemes which are considered a solid solution for regular income for you in old age.
Atal Pension Yojana
If you are not a taxpayer, then you can arrange for regular income in old age through Atal Pension Yojana. In this, registration can be done from the age of 18 years till before 40 years of age. In this, the person has to pay a small contribution every month till he completes the age of 60. Through this scheme, after the age of 60 years, people are given the benefit of monthly pension ranging from Rs 1000 to Rs 5000. The amount of your contribution is decided according to the amount of pension you want to get at old age.
National Pension System
National Pension System is also a good option to get monthly pension. Any citizen of India whose age is between 18 to 70 years can take advantage of this scheme. But this is a market linked government scheme. To get pension you will have to invest till the age of 60 years. However, if the account holder needs emergency funds before retirement, then you can withdraw 60% of the amount from the deposit. However, 40 percent of this is used as annuity. This is how you are given pension. The higher the annuity amount, the more pension you will get.
Systematic Withdrawal Plan
Systematic Withdrawal Plan is an investment under which the investor gets a fixed amount monthly from a mutual fund scheme. Through this, a good old age pension can be arranged. But first you will have to deposit huge funds through SIP or any other scheme along with your job. You can also use your retirement funds for SWP. You get the amount of SWP by selling mutual fund units. If the fund is exhausted, SWP will stop. You have to decide when you need money monthly, quarterly and annually. To activate SWP, you need to fill an instruction slip at the AMC stating folio number, frequency of withdrawals, date of first withdrawal, bank account to receive money.
EPFO
If you are employed and contribute to EPFO every month, then you would be aware of the facility of EPS (Employee Pension Scheme). EPFO runs this pension scheme for the social security of private sector employees after their retirement. If you have contributed to EPS for 10 consecutive years then you become entitled to get pension from EPFO. This pension is received at the age of retirement and depends on the amount of your contribution.
Post Office Monthly Income Scheme
You can also earn income every month through Post Office Monthly Income Scheme. Single and joint account facility is available in this government guaranteed deposit scheme. A maximum of Rs 9 lakh can be deposited in a single account and a maximum of Rs 15 lakh can be deposited in a joint account. This money is deposited for a maximum of 5 years. In this, you earn from interest and your deposited amount remains completely safe. According to the current interest rate of 7.4%, up to Rs 9,250 can be earned from this scheme through joint account. Even after 5 years, if you want to take advantage of the scheme, you can open a new account.
