Have you thought of what to do after retirement? This can be hard and very frustrating when you think of the remaining years and checking on your saving. The thought itself can be very scary. However this shouldn’t worry you. There are different ways that senior citizens can save and benefit at their old age. We have schemes set aside to help save funds and can only be withdrawn once the retirement age knocks.
India is ranked among the best countries which have saving schemes for the age. This begins while one is still employed and basically starts at the onset of employment. Both private and public sectors have scheme like the provident funds. Today we discuss a popular scheme introduced by the government to suit the aged.
Senior citizen saving scheme
Abbreviated as SCSSit a scheme in India for the senior citizens which offers regular income and is risk-free tax saving investment. It works for the citizens above the age of 60 and sponsored by the government. The scheme also support the spouse of the member regardless of the age.
Who is eligible to save?As the word depict the scheme has a certain age who are eligible to participate. Here have few points on who can benefit from the scheme.
- SCSS is only eligible for individual age 60 and above. The citizen is allowed to open and SCSS account for saving and receiving funds.
- People age 55 to 60 can also open the account as long they have taken an early retirement. The scheme has a condition whereby one should open the account one month before the actual retirement date.
- Account opening doesn’t bar the spouse as a beneficiary no matter the age. You only need to fill the age of the primary depositor.
- Retired defence services can apply for the scheme even if they have not attained the required age.
How to open the SCSS account
Note the account is not limited, the citizens can open at any bank and post office as long they have been authorized. They will fill several papers and with that they can enjoy the services.
- Visit the nearest bank or the bank of your choice. Here you will fill form A.
- Carry with you the identity proofs like the voter card, Aadhar card and pan card.
- Have the address proof example the Aadhar card, electricity bill etc.
- Have the age proof: passport, birth certificate etc.
- Have clear and most recent passport photo.
- The above document must be self-attested.
What are the benefits of the SCSS scheme?
- It is Reliable: The scheme is trustworthy as it is sponsored by the government. Government scheme are safe and easily accessible since you can follow upon the procedures.
- Simple and Easy: The account is simple to open and one doesn’t require extra documentation besides the proof documents.
- Good Returns: The government has the scheme at a different return rate of 8.6% compared to other saving and retirement schemes.
- Flexible: The scheme goes for a period of 5 years but one can also extend to 3 more years thus making it 8 years in total.
Speaking of flexibility one withdraws after 5 years and an extension of 3 more years. Incase death occurs the beneficiary maybe spouse will benefit and no charges will occur for premature closure.