Investing for your retirement
Posted on: 21/Jul/2015 11:54:11 AM
Here are a few savings schemes for retirement.
Reverse Mortgage Scheme. The reverse mortgage scheme offers senior citizens the chance to receive a monthly amount for a pre defined period of time. Under this scheme, one can mortgage an asset like a house to a bank and reap benefits of a fixed monthly income. This works best if one does not have any other source of income. The funds received under this scheme are tax free. One may opt for monthly, quarterly or annual payments. Also, some opt for a bulk amount to the tune of 85 per cent of the property price.
Senior Citizen Savings Scheme. This is made for those above 60 years of age, and those who have opted for super annuation or VRS at 55 years of age. The interest is 9.3 per cent and the scheme has a maturity of five years. The scheme has an option of a joint account. The maximum amount investable under this scheme is Rs. 15 lakhs, and is tax deductible under Section 80 C if the interest is more than Rs. 10000 per annum. The scheme also has an option of premature closure. The deduction after one year of the scheme will be 1.5 per cent and after 2 years, 1 per cent.
Fixed Deposits. DS are, by far, the most popular investment option. Deposits are available for varied tenures. They offer fixed income for a preferred period of time. Although interest rates are not as attractive as other schemes, FDs are preferred by those who look for stability and reliability in the investment. Another positive with fixed deposits is the easy availability of loans against the deposits. TDS is applicable on interest earned from fixed deposits.
Pension Plans. These plans are usually offered by insurance companies and guarantee a regular income after retirement. If you are already retired, you may invest a single lump sum amount. Options are available for those investing pre retirement - annual, monthly or quarterly payments.
