2023-12-31 12:17:00
Government-backed Schemes for Senior Citizens to Ensure Decent Income
In a bid to secure the financial future of senior citizens, the Indian government has introduced several schemes that provide them with a decent income. These schemes not only offer financial security but also ensure that the elderly are able to meet their daily expenses without any hassle. Some of the prominent schemes include the Senior Citizens Savings Scheme, National Pension Scheme, Senior Citizens Bank FDs, Atal Pension Yojana, and Pradhan Mantri Vya Vandana Yojana.
The Senior Citizens Savings Scheme is considered as one of the best investment plans for senior citizens. Under this scheme, individuals can invest a lump sum amount and earn a regular interest income. The scheme offers an annual return of 8.2 percent and interests are paid on a quarterly basis.
Another popular scheme is the National Pension Scheme (NPS), which is a market-linked pension scheme administered by the Pension Fund Regulatory Authority of India (PFRDA). This scheme allows Indian citizens between the ages of 18-70 to open an NPS account, with a retirement age of 60. However, individuals can continue till the age of 75.
In addition to these, many banks, both public and private, offer tax-saving fixed deposits with attractive interest rates for senior citizens. The Atal Pension Yojana ensures a fixed pension of Rs 1,000 to Rs 5,000 to the unorganized sector upon reaching the age of 60, while the Pradhan Mantri Vaya Vandana Yojana is a pension scheme that guarantees a pension for 10 years to senior citizens.
The Public Provident Fund (PPF) and Equity-Linked Savings Schemes (ELSS) are also popular investment options for senior citizens. PPF offers an interest rate of 7.10 percent per annum, with the government revising the rate every quarter. ELSS allows tax-free benefits up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act.
These government-backed schemes play a crucial role in ensuring the financial well-being of senior citizens and are a testament to the government’s commitment to the welfare of the elderly population.
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