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How to secure your parents future in old age

How to secure your parents future in old age

Retirement is a period where most people want to relax and be free of stress. Financial liquidity and stability can become an important factor of concern during such times. Individuals working in government sector or public sector have the advantage of getting regular pensions however, the individuals of private sector have to rely on the savings that they have accumulated over the years. However, now there are many investment schemes that can maximize the savings and financial growth of senior citizens even during their retirement period.

Some of the plans for securing your parents future in their retirement period are as follows:

LIC Jeevan Nidhi plan

The LIC Jeevan Nidhi plan is a pension plan, where the amount in the LIC plan is used to generate pension for the policy holder based on the person’s survival past the policy term. The feature and benefits of this LIC Jeevan Nidhi Plan are as follows:

  • The policy term ranges from 5 to 35 years.

  • The premium paid under this plan is exempt under Section 80CCC of the Income Tax Act.

  • There will be no maximum limit for basic sum assured.

  • For the first 5 years, the policy holders will get and receive the guaranteed additions at RS. 50/- per thousand sum assured for each completed year.

  • The maximum age of vesting is 65 years and minimum is 55 years.

HDFC life – Assured Pension Plan

The HDFC life- assured pension plan is a plan that offers market kinked returns with loyalty additions to the policy holder so that the policy holder can meet the retirement’s goals. Some of the benefits and features of this HDFC life- Assured pension plan are as follows:

  • The limited and single pay options are available.

  • The tax benefits will be given under Section 80C and Section 10(10D) of the Income Tax Act of 1961.

  • The vesting benefits will be guaranteed as well as additional gains from the market.

  • The 18 years will be minimum entry age and the maturity age will be 45 years.

  • The nominee will get the benefit of getting higher amount of the fund value after death.

Fixed deposits for senior citizens

The fixed deposits are not just for youngsters, but it is also for senior citizens too. The Fixed deposit for senior citizens is a customised term deposit specially made for only senior citizens who are above 60 years old. Investing in senior citizen fixed deposit will help them to provide additional source of income. The senior citizens fixed deposits will also have attractive higher range of interest rates that will help in them in addition of extra income. Bajaj Finance, a prominent NBFC offers one of the highest interest rates in the market in addition to several other benefits making for a lucrative investment option.

Features and benefits of Senior citizen fixed deposit

The features and benefits of investing in senior citizen fixed deposit are as follows:

  • The nomination facilities are available on these fixed deposits.

  • The interest rates offered under this senior citizen FD are decided on the basis of the duration of the term deposit.

  • The senior citizen FD will offer deposit tenures ranging from 7 days to 10 years depending on the bank.

  • In this senior FD the interest earned is compounded on a quarterly basis and are credited to an account or will be added to the maturity value of the FD.

  • There are some senior citizens FD which are Tax saver fixed deposits which come with a lock in period of 5 years and still offer the special rates of interest for senior citizens.

  • The regular interest pay out can be a boon for retired people because it will help as a source of supplementary income.

A fixed deposit creates a safe place for the money with minimal to no risks. Bajaj Finance offers one of the highest rates of interest in Senior citizen FD, so which is 8.95% for senior citizens. The minimum amount with which you can start investing in a Fixed Deposit is just Rs. 25, 000 and get flexible tenors. You can also choose the frequency of payouts as per your convenience and preference.

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