Last Updated:June 25, 2025, 18:53 IST
Choosing the right investment schemes that offer stable and safe returns can turn your long-term goals into reality.
You can generate steady income even after retirement. (Photo Source: Freepik)
No matter how much you earn during your working years, it is essential to build a secure financial cushion for retirement. Choosing the right investment schemes that offer stable and safe returns can turn your long-term goals into reality.
Retirement is one of the crucial phases of life when your regular income stops and financial independence becomes even more important. With sound planning and the right investment, you can generate steady monthly income and make your golden years comfortable.
Here are the top five safe investment schemes for retired Indians:
1. Senior Citizens Savings Scheme (SCSS)
The SCSS is a government-backed investment scheme designed for individuals aged 60 and above. You can invest a minimum of Rs 1,000 and a maximum of Rs 30 lakh. Depositors will earn a fixed interest rate of 8.20 per cent.
The investment matures after five years, however, if you want to extend it multiple times, you can do it with each extension lasting three years. You are exempted from tax if you invest in SCSS.
2. Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Managed by the Life Insurance Company (LIC), the PMVVY is a government-backed pension scheme designed for senior citizens aged 60 years and above. It provides a guaranteed pension payment for a 10-year period, with an assured return of 8 per cent to 8.3 per cent per annum. The policy term is 10 years.
3. Post Office Monthly Income Scheme (POMIS)
The Post Office MIS provides a fixed income to investors every month. In this scheme, the individual invests a lump sum amount and every month it pays 7.4 per cent interest on the amount invested. After five years, the scheme matures, and the principal amount can be withdrawn or reinvested.
You can invest a minimum of Rs 1,500 and a maximum of Rs 9 lakh. If you have a joint account, you can invest a maximum of Rs 15 lakh.
4. National Pension Scheme
It is a government-backed scheme that is designed to help individuals who want to build a corpus for their retirement. Any Indian citizen between the ages of 18 and 70 years can invest in this scheme with a minimum of Rs 500 per year. That money will then be invested in stocks and mutual funds.
Once you reach 60, you can withdraw 60 per cent of the corpus, and at least 40 per cent must be kept to buy an annuity plan. As it is market-linked, there is no fixed interest rate.
5. Senior Citizen Fixed Deposit
Several banks offer higher interest rates on FDs to senior citizens, usually 0.25 per cent to 1.0 per cent more than the interest rates available in the case of regular FDs. You can open an FD with a minimum of Rs 5,000, usually up to Rs 2 crore, which varies by bank.
As the senior citizen investment option falls under the ETT category, the FD interest amounting up to Rs 50,000 per year is tax-free for retirees.
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