While doing a job or business, most people do not focus on saving for post-retirement. If you are also among them, then it would be better to get well in time. Financial advisors say that one should start investing well in time to lead a good life after retirement. There are many benefits of starting investments at the right time. Today we are telling you five best investment options for retirement.
1. LIC Saral Pension Plan
This is an annuity plan of Life Insurance Corporation. This scheme is for a person of 40 to 80 years. For this the minimum investment limit is 12 thousand rupees, in which monthly, quarterly, half yearly or annual contribution can be made, there is no maximum investment limit.
2. NPS (National Pension Scheme)
NPS is one of the most popular, tax-friendly schemes that can be taken for a happy life post retirement. It has the facility of getting fixed pension. There is also a facility to withdraw money after completing the investment for three years. Withdrawals are allowed only up to 25% of the total deposits before maturity. Tax free withdrawal can also be done during house construction and other emergencies.
3. Atal Pension Yojana
This exclusive pension cum retirement scheme is available to all Indian citizens in the age group of 18 to 40 years. After the age of 60, the person will be allowed to withdraw 100% of his pension wealth. In order to bring the weaker and low-income group of the society under the ambit of pension, the government also contributes its premium. Government assistance is available only to those people who are not taking advantage of any other security scheme. Under this scheme, the government contributes 50% of the subscriber’s contribution or Rs 1000 per annum, whichever is less.
4. Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana is for 10 years. It was earning 7.4 per cent interest in the last financial year which makes it an attractive scheme for senior citizens who want a regular income with assured returns. After three years of deposit, there is also a facility to take a loan equal to 75 percent of the amount. The maximum amount that can be deposited in this is Rs 15 lakh.
5. Senior Citizen Savings Scheme
The tenure of the Senior Citizens Savings Scheme is five years. It is currently giving returns at the rate of 7.4 per cent per annum. You can start with a minimum investment of Rs 1000 in this plan and the minimum investment tenure is five years. After that you can extend it for another three years. This scheme is available to all citizens above 60 years of age. A maximum of Rs 1.5 lakh can be invested in this scheme in a financial year and the interest earned on it is tax free under section 80C of Income Tax.
