Once, there was a wise senior citizen named Mr Gupta who had always been a prudent investor. He had heard about the Senior Citizens Savings Scheme (SCSS) and the Post Office Monthly Income Scheme (POMIS) and, thus, decided to explore them.
One day, he heard some exciting news that the SCSS limit would increase from Rs 15 lakh to Rs 30 lakh from April 1, 2023. Additionally, the POMIS limit would increase from Rs 4.5 lakh to Rs 9 lakh. However, the current PMVVY scheme will close on March 31, 2023.
The timelines to act upon these schemes were as follows:
• SCSS- Rs 15 lakh till March 31, 2023
• PMVVY- open up to Rs 15 lakh till March 31, 2023
• SCSS limit rises to Rs 30 lakh from April 1, 2023
• PMVVY will be unavailable from April 1, 2023
After some careful consideration, Mr Gupta realised that he had an opportunity to maximise the use of both schemes over the next month and a half.
He decided to invest Rs 15 lakh in the SCSS to utilise the upper limit of the scheme till March 31, 2023. This would be done at the current SCSS interest rate of 8 per cent annually. That translated into an annual interest income of Rs 1.2 lakh. Since the interest rate was locked for the full five-year term of the SCSS, Mr Gupta was assured of getting Rs 1.2 lakh a year for five years.
But Mr Gupta wasn’t done yet. He also decided to invest Rs 15 lakh in the PMVVY scheme to utilise this scheme’s upper limit by March 31, 2023, when the scheme was scheduled to close. The current PMVVY pension rate was 7.4 per cent per annum, translating into an annual income of Rs 1.11 lakh. Since PMVVY’s tenure was 10 years, Mr Gupta was assured of getting Rs 1.11 lakh a year for 10 years.
Mr Gupta was delighted with his investment strategy, which maximised his returns and helped him take advantage of the schemes’ changing limits. He knew that by investing in both SCSS and PMVVY, he had secured a steady income stream for the next five and ten years, respectively.
This news could not have come at a better time for many senior citizens who are looking for a safe and reliable investment option. SCSS and PMVVY offer some of the best returns in the market, and with the new limits, investors can now put in more significant amounts, leading to higher returns.
Investing in these schemes is a wise move for senior citizens who want to ensure a stable income stream during their retirement years. These schemes are low-risk investments, and the government backs them, making them a safe option for many.
If you are also a senior citizen or an individual looking for a safer retirement for your parents/grandparents, you can invest in such schemes of PMVVY.
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.