Retirement Planning: The biggest problem after retirement is the stoppage of regular income. While working, one gets salary every month, but after retirement, the expenses remain the same and the means of earning become limited.
In such a situation, if proper planning is not done in advance, then money worries may increase. The best solution to this problem is passive income, which provides long-term income without any daily effort.
Passive income means such income, in which once the right investment is made, money is received at the scheduled time. Income like rent, interest, dividend and pension comes in this category. Passive income is considered very important to maintain financial security after retirement.
Senior Citizen Savings Scheme
Senior Citizen Savings Scheme (SCSS) is a safe option for retired people. This is a government scheme, in which currently around 8.2 percent interest is available. A maximum of Rs 30 lakh can be invested in this and the tenure is 5 years. Its special thing is that the interest is deposited directly into the bank account every 3 months, due to which regular income is maintained.
rental income
If someone has a house, flat or shop, then renting it out can also become a source of strong income after retirement. By getting fixed rent every month, daily expenses are easily covered. However, this requires proper lease agreement and tenant verification.
Dividend paying stocks and mutual funds
For investors who take little risk, dividend paying shares and mutual funds can also be a good option for passive income. These provide dividends from time to time and there is a possibility of capital appreciation, but it is important to keep the market fluctuations in mind.
Post Office Monthly Income Scheme
Post Office Monthly Income Scheme (MIS) is a reliable option for those looking for fixed monthly income with low risk. In this, up to Rs 9 lakh can be invested in a single account and up to Rs 15 lakh can be invested in a joint account. About 7.4 percent interest is available in this scheme, which comes into the account every month.
Annuity plan or pension scheme
Apart from this, annuity plans or pension schemes can also become a strong support for regular income after retirement. In this, instead of lump sum investment, a fixed amount is received every month throughout life.