Warren Buffet

Financial Planning for Senior Citizens

A guide to Financial Planning for Senior Citizens

When we move towards retirement it becomes crucial to invest in safe financial avenues.  While there are several options and Monthly Income Plans for Senior Citizens, fixed deposits prove to be a good option for senior citizens with irregular stream of income.

One that consists of Investment Schemes for Senior Citizens such as corporate fixed deposits, post office FDs and RDs, Post Office Monthly Income scheme, RBI savings bonds, Senior Citizen Investment Scheme, mutual funds, Bonds & NCDs, Annuities, etc.

FD is one of the best investment plans for senior citizens in India and EldersWealth, a financial planner in Bangalore, presents a wide range of options to select from. The guaranteed and risk free returns are one of the main reasons why fixed deposits are considered the Best options for retirement income. Moreover, opening a FD account is very simple and it can be done online via net banking though any bank or Non-Banking Financial Companies.

Fixed Deposit Interest Rates for Senior Citizens are usually slightly higher (00.50% to 00.65%) than interest rates offered to other investors. Senior citizens also have a privilege to choose the frequency of interest pay outs.

There are other Monthly Income Plans for Senior Citizens

which work in the similar way of mutual fund. They primarily invest in equities and serve the dual goal of capital preservation and generation of a cash flow. Thus they make one of the best investment plans for senior citizens in India

EldersWealth, being a renowned Financial Planner In Bangalore, can provide necessary assistance and offer Best Investment Options for Senior Citizens.

Among out many offerings, EldersWealth offers high-security debt instruments – bonds, for investors who are looking to invest in relatively safer investment option than equity/stocks. We have always recommended bonds to be the part of Financial Planning for Senior Citizens in Bangalore.  Here’s a glimpse of types of bonds which can be considered as senior citizen investment solutions.

  • Capital Gains/ 54EC bonds
  • Capital gains bonds can help investors save long-term capital gains tax. Their AAA rating and the lock-in period of 5 years are some of the other features of these bonds. The maximum amount one can invest in these bonds is up to Rs. 50 lakh and the tax benefit is available u/s 54EC of Income Tax act.

  • Government bonds (GOI bonds for senior citizens)
  • Issued by the state and central government of India, Government Bonds offer a combination of assured fixed returns with complete safety of your principal amount. There is typically a long-term investment option and interest rates offered are subject to change due to external factors such as inflation, investor sentiments or change in regulatory policies.

  • Secondary Market bonds:
  • These types of bonds are traded in the secondary market to offer investors the benefit of liquidity and safety at the same time. They can be considered as senior citizen investment solutions and come in two types:

    Fixed maturity bonds: These bonds carry consistent coupon rates throughout the tenure. Investors know the exact amount they will receive at the end of tenure, irrespective of market fluctuations.

    Perpetual bonds: These are fixed-security investment options without any maturity period. Issuers pay interest for perpetuity (forever) and the principal amount is not redeemable.

    While Fixed Deposit Interest Rates for Senior Citizens are attractive and guaranteed, investment in bonds can also be one of the Best Investment Options for Senior Citizens as bonds can help build a constructive asset allocation strategy for investors of all risk appetites.

    If you are looking for Best options for retirement income, one can also consider Market linked debentures which are the structured products offering attractive payoffs for the term ranging from 15 to 48 months. Although these are debt instruments, the rate of return on MLDs is linked to the underlying stock or index hence it is not fixed.

    FAQ

    Which is best monthly income plan? / Suggest Monthly Income Plans for Senior Citizens

    An investment that generates steady flow of income with a considerable amount of safety of capital is the best Monthly Income Plans for Senior Citizens

    Who can open a senior citizen fixed deposit account?

    Any Indian aged above 60 years can open a FD account and avail special Fixed Deposit Interest Rates for Senior Citizens. 

    Are investments made in fixed deposits taxable for senior citizens?

    Only the amount of interest earned over ₹50,000 would attract the tax as per the applicable slab rate of senior citizens

    What is the interest rate for senior citizens?

    Fixed Deposit Interest Rates for Senior Citizens are usually slightly higher (00.50% to 00.65%) than interest rates offered to other investors.

    What is the best investment for senior citizens? / Best Investment Options for Senior Citizens?

    There are various investment products available in the market and companies providing Financial Planning for Senior Citizens in Bangalore. The Best Investment Options for Senior Citizens should be finalised after seeking professional help.

    Where can a senior citizen get the highest interest on his/her money?

    Mutual funds, Bank FDs, corporate FDs, GOI bonds for senior citizens are some of the best options generating higher returns for senior citizens.

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