Published : 26 May 2023
Only senior citizens (those older than 60) are allowed to invest in a senior citizen savings plan (SCSS), which is supported by the government. SCSS is providing a weekly interest payment option with an annual interest rate of 8.2%. It is in effect for a period of five years.
The Post Office Monthly Income Scheme (POMIS), is backed by the government. POMIS is presently giving 7.4 percent annual interest, payable monthly.
This scheme was created especially for senior citizens to ensure their financial security after retirement. It offers fixed interest rates starting at 7.4% per year to senior citizens, giving them a stable income.
Another option for an investment that will provide a reliable monthly income is a guaranteed income insurance policy. These are life insurance policies that offer the buyer the choice of a predetermined monthly payout following the maturity period.
Indian insurance companies provide annuity plans, which give a steady income at a lower risk. By investing in a lump sum to generate income at regular intervals, this can be used as a retirement plan.