“How Senior Citizen Savings Scheme-SCSS Works”
This is the best investment in safe investments for retired individuals, backed by the surety of the Government. In India, this is a Central Government sponsored scheme, which is provided by Post Office and designated branches of banks.
Post Office.
State Bank of India-SBI.
What are the benefits of SCSS?This gives you an opportunity to get regular income after retirement for your necessity. It gives you 8.4 % annual return paid in 4 equal parts on a quarterly basis.
This product is for 5 years and total 15 lacs can be invested in one name and 30 lacs in joint name, in Post Office or designated branch of banks.
Is there any Tax benefit?
Investment up to 1 lac qualifies for the deduction of income. The returns from the scheme are taxable in the hands of individuals.
Is it suitable for individuals?
No plan is good or bad, only the situation of individual decides whether he or she should buy the product or not.
You should not buy any plan without planning your need for retirement. This plan gives you money for expenses and hardly adds any value to your purchasing power.
By the end of the term of this product your capital loses its purchasing power by 32% if inflation for the period remains at 8% for you. Investment without knowing your need you can have income for some time but with a passing passage of time, the amount will be insufficient for you.
The answer is comprehensive customized life planning.It makes you plan your life with approximately all the domains of life with a long horizon.
To carry out all your responsibilities you need to plan your life.
| Years | Your Investment in Rs. | Annual Return @ 8.4% | Inflation | Your expenses | your surplus |
| This year | 1500000 | 126000 | 8% | 120000 | 6000 |
| After 3 years | 1500000 | 126000 | 8% | 151166 | ? |
| After 5 years | 1500000 | 126000 | 8% | 176319 | ? |
