Getting old is everyone's fear - but how much can fear to safeguard you from the future? Retirement thoughts and the feeling of not having a paying job could be scary.

Here, what comes to the rescue is investments and savings. You know there is something you can count on when you've retired. Modern day society, for that matter, helps us through this - it gives us saving schemes to make things simpler and easier.

But, have you wondered if there is a way to start saving after retirement or when you are a senior citizen? There are ways for that too. So, this post is here to speak about some of the best saving schemes a senior citizen can benefit from. 

Some of the Best Saving Schemes for Senior Citizens

1) Pradhan Mantri Vaya Vanjana Yojana

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a senior citizen investing scheme. It provides retirement and pension benefits. The system is managed and is also operated by the Life Insurance Corporation, which is overseen by the government. PMVYY provides a guaranteed return. The system would be in place for ten years.

The government has announced a revision in the scheme's interest rate structure. In the previous version of the plan, the interest rate was fixed for the entire tenure of the investment. However, according to the most recent modifications, the scheme's interest rates will be disclosed once a year. In other words, it is 7.66% every year for the entire ten-year period. PMVVY pays a pension on a monthly, quarterly, or yearly basis.

The system requires subscribers to be at least 60 years old. The minimum and maximum deposit amounts are INR 1,50,000 and INR 15,00,000. Furthermore, a loan against deposits is available. After three years, a loan of up to 75% of the price that it was purchased.

2) Senior Citizens Savings Scheme

One of the most famous post office savings plans for senior citizens is the senior citizen saving scheme. The initiative has the support of the Indian government. It provides its investors with security and consistent income in the form of interest payments. Every quarter, interest is calculated and credited to the investor's account. The Ministry of Finance revises interest rates every quarter. The SCSS interest rate for the quarter of October to December 2022 is 7.60%.

The scheme requires a minimum investment of INR 1,000 and a maximum investment of INR 15 lakhs. The Senior Citizens Savings Scheme has a five-year lock-in period. Investors can also prolong the scheme's tenure for another three years. Furthermore, the investment in SCSS is tax deductible under Section 80C. However, interest income is taxable, and a TDS is deducted if it exceeds INR 50,000. When completing their income tax returns, investors could also claim a tax benefit of INR 1,50,000.

SCSS investments can be withdrawn prematurely by investors. They are, nevertheless, subject to certain penalties. The penalty varies according to the account's terms. Premature withdrawals are only permitted one year after the account is opened. Withdrawals made within two years after account opening are subject to a 1.5% penalty on the amount invested or deposited.

In addition, withdrawals made after two years after account inception are subject to a 1% penalty on the initial amount. If the account holder dies before the maturity date, the account is closed, and the proceeds are sent to the nominee or heir.

3) Monthly Income Scheme from the Post Office

Post Office Monthly Income Scheme is provided by India Post or the Department of Post. The Government of India supports this savings plan. POMIS is a low-risk investment option that provides depositors with a regular monthly income in the form of interest payments. The scheme has a five-year lock-in term. When the scheme matures, the depositor has the option of withdrawing or reinvesting the funds.

The minimum deposit amount is INR 1,500, while the maximum limit per individual is INR 4,50,000. However, the maximum limit for a joint account is INR 9,00,000. Additionally, the POMIS account could be transferred from one post office to another. Furthermore, after one year of account opening, the scheme allows for early withdrawals. Premature withdrawals, on the other hand, incur a penalty.

4) Tax-Free Bonds

Government infrastructure corporations such as NTPC Limited, Housing and Development Corporation, NHAI, and Indian Railways Finance Corporation provide tax-free bonds. The bond has a term of more than ten years. Furthermore, the investment is subject to a lock-in term until maturity. The interest rate on these bonds ranges from 5.5% to 6.5%. The bond issuer pays interest on a yearly basis, and the entire amount is tax-free.

Since the schemes are backed by the government, tax-free bonds are low-risk investments. As a result, the likelihood of default is low. Furthermore, the system provides capital protection and regular income in the form of interest payments. As a result, it is an excellent investment alternative for senior citizens.

Despite the lock-in period - the investors could also sell the bonds on the stock market. Because bonds trade in low volume, their returns are determined by the buying price. Gains from bond sales are taxable under Section 112. If the bond is sold before one year, the profits are taxable at the investor's marginal tax rate. Assume the bond is sold after a year. In that instance, long-term capital gains will be taxed at 10% without indexation and 20% with indexation.

5) Mutual Funds

Mutual funds are financial entities that aggregate money from various individuals with similar goals and invest in stocks and bonds. Mutual funds are classified into three types: equity funds, debt funds, and hybrid funds. Equity mutual funds mostly invest in equities, whilst debt mutual funds primarily invest in debt and money market assets. Hybrid funds are the ones that invest in both debt and equity instruments. Senior citizens can connect their objectives with the fund's mission and select the best one.

Investors in mutual funds can not only invest monthly through SIP. They can also withdraw their investments at regular periods through SWP. Systematic Withdrawal Plans (SWP) enable investors to make recurring withdrawals from their mutual fund assets. Investors can withdraw a fixed or variable amount on a monthly, quarterly, half-yearly, or annual basis. 

Investors can choose to withdraw only their capital gains, leaving their original investment untouched. Furthermore, they will be required to pay capital gains tax only on the amount withdrawn. As a result, SWP not only delivers consistent income but is also tax efficient.


It is quite simple to get started with saving even after your retirement. These saving plans could either fund your dream trip, compile for a child's wedding, and much more. These plans will come in quite handy when you do choose to start, but make sure you choose the schemes that suit your saving objective.

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