Whether you are salaried or retired, a fixed income gives you a secure future in terms of finance generation. Especially, in case of those individuals who are close to their retirement age, getting a fixed income is considered as a stable earning source. These days, many investment plans and schemes are available in the financial market that helps senior citizens or salaried individuals in earning a regular income post-retirement. Take a look:
Investing money in fixed deposits from the start of your career helps in generating a stable income post-retirement. You can start investing in various FD schemes and earn a regular income with a fixed rate of interest. The risk factor with FD is very low and most importantly they are taxable under section 80 C of the income tax act. The maturity period, however, varies as they offer monthly, quarterly, and yearly return. The lock-in period is 5 years and you can expand it as per your requirement. The average interest rate offered on FDs hovers between 7-9%.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
It is an exclusive pension scheme which is announced for senior citizens by the central government. The scheme offers an assured return of 8% p.a. payable monthly for 10 years. An individual can also get 75% of the loan via this scheme only after 3 years of the policy. The investment limit is Rs 15 lakh per senior citizen. After the maturity of the scheme, a senior citizen can avail minimum pension starting from Rs 1000 monthly. It can also be availed quarterly, half-yearly or yearly.
Investing in Government bonds is also a good and safest source of stable income. These bonds come under long-term investment and usually offer 8% of return half-yearly. After maturity, an individual can easily get back the principal amount earned. As these bonds can be traded in the secondary market, so if you can easily sell them early too.
Just like Fixed Deposits, corporate bonds also offer a fixed monthly income post-retirement but these are mainly provided by Non-Banking Financing Companies (NBFCs) and housing finance companies. Also, these bonds offer a high rate of interest than FDs on a quarterly or yearly basis. However, the risk factor with corporate bonds is high so you can invest with multiple companies that are rated AAA from CRISIL or ICRA that ensures fixed monthly income every year.
Post office MIS
The Post Office Monthly Income Scheme (MIS) is promoted by the central government and is again a secured investment option. You can start with a minimum investment of Rs 1500 which goes to a maximum of Rs 4.5 lakh. The rate of interest offered on Post office MIS is 7.5%. It has a maturity period of 5 years and after that, you can get the earned amount in your bank accounts.