Consider this: You have always been smart, financially aware, meticulously planned your future and the silver days. You are confident taking inflation into consideration, the corpus you have built or are building would be more than sufficient to take care of your post-retirement days -- the most basic and standard fallacy in most of our lives. What is paramount is not the accumulation but smarter investment, diversification and planning the maturity timelines, to ensure they are able to take care of your expenses too, while they grow and assure you and your beneficiaries dividends in future.
There are a plethora of saving schemes for senior citizens. But, with time not on their side, senior citizens look for investment avenues that carry minimal risk.Here are a few financial instruments that you ought to have in your portfolio to achieve this goal.
- Senior Citizen Saving Scheme (SCSS):One of the safest for senior citizens, with the interest being paid out quarterly (liquidity), backed by central government debt funds (risk), and only a 5-year lock-in (tenure)
- Pradhan Mantri Vaya Vandana Yojana (PMVVY): A government-backed scheme, it comes with no credit risk and a longer tenure of ten years. The scheme was to end on March 31, 2020, but the central government decided to extend until March 31, 2023 due to its popularity amongst retirees
- Life Insurance Annuities: Unlike PMVVY and SCSS, annuities offer guaranteed returns over a much longer term of 30-40 years, covering your entire retirement phase.
- G-Secs: Being a sovereign security, it is highly secure, and provide average stable returns. With longer tenures, and an option to exit, if the need arises, these are very lucrative instruments, guaranteeing semi-annualised payouts
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