If you want to secure your life, then the primary objective should be to secure a steady income from a saved sum of money to support a pleasant life after retirement. Generally, senior citizens look for financial strategies to safeguard their funds for a secured future and this demographic values investments that are easily accessible to address unforeseen circumstances.
However, regardless of your age, making valued investment decisions necessitates careful planning and consideration. Before deciding on any investment options, it is imperative to accurately assess one's financial requirements, including estimating the monthly budgetary needs.
On this World Senior Citizen’s Day 2024, check here the list of best investment options for elderly adults:
Senior Citizens Savings Scheme (SCSS)
Launched by the Central government in August 2024, the Senior Citizen Savings Scheme (SCSS) offers a risk-free savings opportunity and the scheme was launched for individuals aged 60 and above. The SCSS also offers benefit of a guaranteed income throughout the investment period. This scheme also provides senior citizens with a regular income stream, aligning with their financial needs and objectives.
The current interest rate in the scheme stands at 8.2% and the regular reviews of these interest rates occur every quarter, with the most recent evaluation having taken place on June 30, 2024.
Post Office Monthly Income Scheme
It is another Central government scheme which is ideal for senior citizens seeking a secure investment option. With an annual return rate of 7.4 percent, this scheme offers as a reliable income source for people after retirement. With financial stability and capital protection during retirement, this scheme provides seniors with peace of mind and support in their post-career years.
The first and foremost benefit of this scheme is capital protection as it is a government-backed scheme and this scheme also ensures the safety of your funds until maturity.
The tenure of this scheme is 5 years during which your investment is secured and after your scheme gets matured, you have the option to withdraw the invested amount or reinvest it in the scheme.
Pradhan Mantri Vaya Vandana Yojana
First launched in 2017, the Pradhan Mantri Vaya Vandana Yojana is a retirement-cum-pension scheme that is designed for all senior citizens. Operated and managed by LIC (Life Insurance Corporation), this scheme gives an instant annuity plan. After you invest a lump sum amount, investors receive a fixed sum regularly.
Senior citizens receive an interest rate between 8% to 8.3% per annum from this scheme and a specific rate depended on the chosen payout period – monthly, quarterly, half-yearly, or yearly. The Centre during Budget of 2018-19 had revised the interest rate to 7.4% for the year 2020-21, coinciding with the 3-year extension of the scheme.
As part of the PMVVY scheme, the pension amount is fixed regardless of the investor's age and they can apply for a loan of up to 75% of their initial investment after completing 3 years in the scheme.
Fixed deposits
Senior citizens can also plan for fixed deposits (FDs) as a dependable source of income and capital security. FDs are a wise financial option, particularly for older investors aiming for stable returns. In the recent times, the fixed deposits have become increasingly popular among seniors due to their safety, predictable returns, and competitive interest rates.
