Seniors can earn a steady income after retirement through these methods, check details

5 Arrangements for a Regular Income for Seniors: When you reach the retirement age of 60, chances are that your sources of income will deplete at that age but your daily expenses will remain. They may decrease but you need some money every month to meet your daily expenses. Financial freedom also means being independent at every stage of your life so that you don’t have to depend on others. There are many guaranteed and market linked investment schemes that you can invest in and earn returns to earn a regular income and manage your daily expenses. Some of them are here-

Savings Scheme for Seniors (SCSS)

It is a post office scheme where you can invest up to Rs 30 lakh once and get quarterly income in the form of interest. The guaranteed return scheme offers 8.2 percent annual interest. Retired civil servants above 60 years of age can apply for the scheme with a minimum investment of Rs 1,000. The scheme offers income for five years. The account can be extended up to three years after maturity. Deposits made in the scheme are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.

RBI floating rate bonds

These RBI bonds offer an annual interest of 8.05 percent and have a lock-in period of 7 years. The interest rate is subject to change. The minimum deposit in the scheme is Rs 1,000, while there is no maximum limit. The interest on the bonds is payable half-yearly on January 1 and July 1 of every year. The interest earned is taxable, but bonds are exempt from wealth tax under the Wealth Tax Act, 1957.

National Savings Account for Monthly Income (MIS)

This is a post office scheme where one can have a single or a joint account. In a single account, one can make a one-time deposit of up to Rs 9 lakh, while in a joint account one can deposit up to Rs 15 lakh. The scheme offers 7.4 percent interest which is payable monthly. In a single account, one can get up to Rs 5,550 as monthly income, while the maximum monthly income in a joint account is Rs 9,250.

Systematic Recording Plans (SWP)

It is a way to systematically withdraw your money from a mutual fund. In this case, you deposit a fixed amount into a mutual fund and withdraw a predetermined amount from it every month. You get compound growth on your deposit, so if your withdrawal rate is lower than your growth rate, you can withdraw your monthly income from it for decades.

Fixed Deposit (FD)

Banks, small banks and post offices operate fixed deposit schemes. There are special schemes and FDs starting from 1 year. Deposits in a 5-year FD are also eligible for Section 80C tax benefits. One can make a lump sum deposit in an FD scheme and earn interest annually. FD holders can also request banks to deposit interest in their accounts every month or quarter. This is a guaranteed return scheme where you get the principal amount back at maturity.