4 Ways to Get Ready for Retirement in Your 60s

The right investment done at the right time can benefit you in the later period. From the time we start earning, we try to make our life easier by fulfilling the basic needs of life like buying a house, a regular transit vehicle and other important expenses. In the pursuit of chasing all this, we forget to take the necessary measures that might keep our retirement life balanced. The most common problem people face during their retirement period is the shortage of funds, and a shortage of funds at this point of life can be very daunting. Hence, it is important that you take necessary measures to keep yourself ready for your retirement.

The financial shortage during the retirement age can make you feel helpless as the chances of expenditure and medical emergencies increases. Most of the time, people think that savings can be the best form of funding at the time of retirement, but this might not be the case every time. To make sure that you keep yourself funded during these crucial times, you can use methods that can keep you finance ready for the future. You can use your savings to invest it in options like Mutual Funds, Senior Citizens’ Saving Scheme (SCSS), Post Office Monthly Income Scheme (POMIS) Accountand Senior Citizen Fixed Deposit.

The idle funds in your savings account might not benefit you much; while with the use of investment tools, you can double your savings and also improve your financial conditions. Before you choose any one of the above options, you should have basic information about them:

  1. Mutual funds: Mutual funds are among the popular investment sources in India that bear the reputation of doubling the invested amount quicker than expected. Many investors believe that mutual funds are the riskiest investment, as it depends on the market conditions for returns. There are no guaranteed returns, and the investor may even lose his invested capital. In order to gain maximum profit, the investor should have necessary market experience and good market knowledge.
  2. Senior Citizens’ Saving Scheme(SCSS): An investment tool for the people above 60, you can apply for an SCSS from any banks or nearby post office. The maximum investment tenure can range up to five years and can be extended for three years more when the scheme matures. The SCSS has an 8.6 percent per annum return rate and is payable quarterly and is taxable. The maximum investment limit can be INR 15 lakhs.
  3. Post Office Monthly Income Scheme (POMIS) Account: This is a government supported investment scheme and has a five-year investment tenure. The investment limit for POMIS is INR 9 lakhs for joint investors and INR 4.5 lakhs for a single investor. The return rate for the investment is 7.8 percent. The returns gained from POMIS is taxable and not subject to tax deductions.
  4. Senior Citizen Fixed Deposit: The Senior Citizen FD is one of the safest investments and also offers secured and guaranteed returns. The interest rates offered on Senior Citizen FDs can range up to 8.10 percent, with the investment tenure up to 5 years. The Senior Citizen FDs have better perks and can be operated through the online portals of the NBFCs too.

In order to keep yourself ready for the future, you need to invest wisely and keep track of your investments. While if you are looking for an investment that offers security for the invested capital and guaranteed returns, Senior Citizen FDs can be the ideal option you are looking for.

 

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