You would anticipate your investment to give you a monthly income and build money for your post-retirement life as an investor. Some investments supply you with only one of the perks, while others provide you with both.
Low-interest rates terrify most retirees because most retirees seek assured, tax-free earnings. They are disappointed to learn that there are few guaranteed, tax-free instruments available in the nation for retirees.
The following are some of the best investment opportunities for seniors and retirees:
1. Fixed Deposits and POMIS:-
Fixed deposits (FDs) are one of the most popular kinds of investing among retirees. Banks also give seniors a greater interest rate on FDs than they do on savings accounts. Interest income up to Rs 50,000 for older persons throughout a financial year is tax-free under Section 80TTB of the IT Act.
You might also invest in the Post Office Monthly Income Scheme (POMIS), which provides a consistent monthly income. Though you can get tax savings on investments up to Rs.1.5 lakh in tax-saver FDs with a five-year maturity period, the interest earned on those investments is taxable.
2. Senior Citizens Saving Scheme:-
SCSS is a fantastic investment choice for older individuals seeking long-term savings plans that provide security as well as other benefits. The scheme is available at post offices and approved banks around the country.
This program not only has a higher rate of interest, but you also enjoy tax benefits of up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act, 1961.
SCSS has a five-year maturity period that can be extended for another three years. Furthermore, you have a maximum investment limit of Rs 15 lakhs. When you open an SCSS account, you must provide a nominee as well.
3. Mutual Funds :-
Investing in mutual funds is by far the most effective way to accumulate money over time. Begin investing in mutual funds to reap the benefits of inflation-beating gains as well as tax savings.
You may invest in top-performing mutual funds recommended by professionals with a tax deduction of up to Rs 1.5 lakh per year and inflation-beating returns.
4. National Pension Scheme:-
Individuals between the ages of 18 and 65 can participate in the National Pension Scheme. Senior folks can also prolong their stay till they are 70 years old. Taxpayers can claim a deduction of up to Rs 1.50 lakh per year on NPS contributions made under Section 80C.
Even though NPS does not pay a consistent interest rate, it provides exceptional returns, and you may accelerate the growth of your investment by allocating your NPS to equities funds.
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