Worried About Life After Retirement? Get Income in Your 60’s

Planning your retirement doesn’t have to be challenging. There are many ways to boost your savings for the twilight years and live life comfortably even after you have retired from your job permanently. The following are some of the best options to consider:

1. Senior Citizen Savings Scheme (SCSS)

SCSS is one of the most popular savings schemes for retirement as offers a high interest rate of 8.4% and also allows for tax deduction at the time of investment. However, there is one downside to this scheme which is that the maximum amount that you can invest is Rs. 15 lakhs. If your spouse also invests, then the limit can be increased to Rs. 30 lakhs.

2. Public Provident Fund (PPF)

The Public Provident Fund (PPF) is another popular long-term investment plan which has a tenure of 15 years. It offers a tax-free interest rate of 8% which is compounded, meaning that the returns are quite high. Also, both the principle and interest are supported by sovereign guarantee to make it a safe investment.

3. Atal Pension Yojana (APY)

If you are within the age group of 18-40 years, then you can invest in Atal Pension Yojana i.e. APY. As the name suggests, it’s a pension scheme in which you can deposit money on a regular basis to receive a regular pension after you retire. You get the option to receive a monthly pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, and Rs. 5,000. If you pass away during the tenure, then your spouse can receive the pension instead.

Apart from the popular investment schemes that are discussed above, you can take certain measures to save more money for your retirement:

Take Loans Once When You Have to

It’s possible that from time to time you may need to take a small business loan or personal loan. However, you should be careful with debt, especially when you are close to retirement. So, take a loan when you have no other option. Also, try to clear all your debt by the time you turn 60 and avoid getting lured by attractive interest rates or pre-approved loans that your lender may offer you on the account of your good credit score.

Take Care of Your Health

Staying healthy becomes more and more important as you age. Not only poor health affects your lifestyle, but it can also make a big dent in your savings that you might be saving for your retirement. So, try to improve your diet, exercise on a regular basis, and take measures to lower stress as much as possible.

Educate Yourself on Investments

There are all kinds of investment options depending on your budget and requirements. While there are standard pension schemes that are discussed above, there are other options as well which include mutual funds, stocks, bonds, etc. You can earn a lot more through these options, granted you know what you are doing. So, whenever you get free time, try to learn more about these investments and how you can maximize your earnings.

Protect Your Credit Score

Your credit rating is something that you need to protect all your life. This is because the score affects everything- the interest rate on a home loan, business loan, credit cards, etc. also your job prospects. You may have to pay high health and auto insurance premiums if the insurer checks your credit score before calculating the amount.

Save on Taxes

Did you know that there are many ways you can reduce your taxes? For instance, if you are investing in PF scheme, 5-year tax-saver fixed deposit accounts, etc. and paying a premium for health insurance, etc. then you can deduct these amounts from your taxable income and pay fewer taxes to the government.

Bottom Line

It’s understandable if you are anxious about your retirement. When you are old, then it becomes difficult to do lots of things that you are able to do today without any problems. However, financial planning can make your twilight years safe and stress-free to a huge extent. This is why it’s best to start working on a roadmap as soon as you can. Good luck!

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