ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Retirement Planning - Senior Citizen Schemes without Investment Risks

Updated on July 10, 2011

There are a few things to keep in mind when addressing requirements of senior citizens who cannot afford to take investment risks:

A-1. Ensure that retirement money is invested properly via high-yielding and safe vehicles.

B-2. Ensure that the regular lifestyle is not impacted due to the stoppage of salary on retirement.

C-3. Ensure that the tax liability is retained at a minimum assuming that there are no other liabilities like loan payments or big family functions.

To achieve (A1):

(a) There is no need to close the PPF A/C, and consider investing it elsewhere. After the completion of 15 years of term, one can extend the PPC A/C in blocks of 5 years; hence, attractive interest accrues on it, that too, totally tax-free. Any additional contributions stand eligible for 80(c) benefit. This serves C-3 also, pretty well.

(b) B-2/c, B-2/d will be able to absorb the PF/Gratuity/LIC Policy Receipts.

(c) Any surplus, can be deployed into very low-risk debt-based mutual funds (e.g., Birla Sunlife MIP Savings - 5) OR into long term bank fixed deposits (because we want to lock in the higher interest for as long a tenure as possible - note that we are in a declining interest rate regime). The low risk debt mutual funds provide instant liquidity, the bank fixed deposits have to be broken as and when a need arises - it should be kept in mind though.

Plan your retirement now.
Plan your retirement now.
Retirement Farewell of Assistant General Manager of Indian Overseas Bank.
Retirement Farewell of Assistant General Manager of Indian Overseas Bank.

(d) We need not plan for those Fixed Deposits that are likely to mature in 2012 now. Let at least 2011 December arrive.

To achieve (B-2):

(a) Pension from Central Government serves part of the purpose.

(b) LIC Pension Plan serves part of the purpose.

(c) An investment of Rs. 6 lakhs in Post Office Monthly Income Scheme (maximum limit, over a joint account) can be contemplated.

(d) Senior Citizen Savings Scheme for Rs. 15 lakh that is the maximum limit will generate 9% interest.

To achieve (C-3):

(a) Any surplus in the overall monthly cash inflow i.e., arrived at, in B-2, can be swept back as a fresh investment into the PPF Account.

(b) If you are opting for Senior Citizens Health Insurance, then yes you are right as it is a must have policy.

The above senior citizen schemes are without investment risks and can generate a very decent monthly cash inflow of approximately Rs. 30000 per month. According to me, this is the safest way to plan your retirement without any investment risks.

Goa government implements senior citizens welfare scheme on World Elders Day



    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)