Outlook Money
Retirement planning is important as it helps one build a stable corpus that fetches a good return after one retires from work. Government-sponsored schemes especially the Senior Citizens Savings Scheme (SCSS) and Public Provident Fund (PPF) are useful in planning.
This is a savings scheme and is for those who have crossed 60 years of age. It offers a great fixed interest rate compared to other saving schemes.
PPF is a long-term saving scheme and comes with 15 15-year lock-in period. The returns provided are compounded, and tax-free, and it allows for partial withdrawal in the sixth year.
One can start investing with SCSS after the age of 60. One can cover health insurance using SCSS payouts after retirement.
PPF is ideal for long-term investment, benefiting from compounding over time. By starting early, even at the age like 20 or 30, one can accumulate a significant corpus by retirement.
While SCSS and PPF carry lower risks, they can still serve as a hedge against inflation when combined with mutual funds or annuity investments. The allocation of investment should be based on risk tolerance and individual objectives.