Tag Archives: SCSS

Planning for Retirement- 5 Best Govt-Backed Pension Plan you can Apply for in 2023


Planning for Retirement is necessary as life expectancy is increasing and people are living longer, which means that retirement can last for many years. This makes it even more important to plan for retirement to ensure that there is enough money to last through a potentially long retirement period.

Planning for Retirement
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Retirement planning is necessary because it helps ensure that an individual has enough money to maintain their standard of living during retirement. Without proper planning, an individual may find themselves unable to afford the things they need or want during retirement, leading to financial stress and potentially poverty. Here are some of the popular government backed retirement schemes available to invest.

1. Pradhan Mantri Vaya Vandana Yojana

Life insurance corporation of India runs a scheme Pradhan Mantri Vaya Vandana Yojana for investors who plans to invest for retirement planning. In this scheme, any individual can invest up to the maximum of Rs. 15 Lakh (maximum age capped at 60 Years). The amount of pension depends upon the amount of investment.

If one invest Rs. 15 Lakh in the scheme, they will get Rs. 9,250 as monthly pension along with the premium payment amount. Investors can subscribe for Pradhan Mantri Vaya Vandana Yojana both online and offline. The last date for the investment for this year is 31st March 2023.

Tenure of the Scheme10 years,
Interest rate7.6% p.a.
Frequency of computing interestQuarterly
Tax aspectsTax Benefit under Section 80C
Investment to be in multiples ofRs.1,000
Maximum investment limitRs.15 lakh
Minimum eligible age60 years
Maximum PensionRs. 9,250

2. Senior Citizen Savings Scheme (SCSS)

This is a savings scheme for senior citizens in India, with a maturity period of 5 years. It offers a higher interest rate than other savings schemes and it provides tax benefit under section 80C. Citizens at or above age of 60 Years can avail the benefits of Senior Citizen Saving Scheme.

A minimum of Rs. 1000 and a maximum of Rs. 15 Lakh can be invested in this plan. The new interest rate has been implemented in this scheme from 1st January 2023. At present this scheme is giving interest rate of 8 per cent. Interest is payable on the deposit amount on Quarterly basis.

Some of the Important points are as follow-

Tenure of the Scheme5 years, which can be extended by 3 more years
Interest rate8% p.a.
Frequency of computing interestQuarterly
Tax aspectsTax Benefit under Section 80C
Investment to be in multiples ofRs.1,000
Maximum investment limitRs.15 lakh
Maximum PensionApprox. Rs. 10,000

3. Atal Pension Scheme

Anyone between the age of 18 to 40 years can invest in this retirement plan. In Atal Pension Scheme, a person has to invest a small amount every month till age of 60. After the age of 60 years, investor get benefit of monthly pension ranging from Rs. 1000 to Rs 5000.

Tenure of the SchemeInvestment of minimum 20 years are required.
Interest rate7.6% p.a.
Frequency of computing interestQuarterly
Tax aspectsTax Benefit under Section 80C
Investment to be in multiples ofRs.1,000
Maximum investment limitInvestment of minimum 20 years are required.
Minimum eligible age18-40 Years
Maximum Pension Up to Rs. 5,000

4. National Pension System (NPS)

NPS is a good option to get a monthly pension. Most of the amount invested in this scheme is invested in market and return is linked to market performance. So on average investor gets 10% return on there investment.

Tenure of the SchemeCan invest till age of 65 Years
Interest rate9% to 12% p.a.
Frequency of computing interestQuarterly
Tax aspectsTax Benefit under Section 80C
Investment to be in multiples ofRs.250
Maximum investment limitNo cap on investment amount
Minimum eligible age18-65 Years
Maximum PensionDepend upon investment
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5. Public Provident Fund (PPF)

The Public Provident Fund (PPF) scheme is a very popular long-term savings scheme in India because of its combination of tax savings, returns, and safety. The main objective of the scheme is to help individuals make small savings and provide returns on the savings. The PPF scheme offers an attractive rate of interest and no tax is required to be paid on the returns that are generated from the interest rates.

Tenure of the Scheme15 Years ( Can be renewed in block of 5 Years)
Interest rate7.1% p.a.
Frequency of computing interestQuarterly
Tax aspectsTax Benefit under Section 80C
Investment to be in multiples ofRs.500,
Maximum investment limitMaximum 1.5 Lakh p.a
Minimum eligible age18-65 Years
Maximum PensionDepend upon investment

Also read 7 Personal finances to watch out for in 2023

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