List of Government Schemes for Retirees By Athulya - May 25, 2019 Last Updated at: Jul 11, 2022 4684 List of government schemes for retirees. The Central Government has recently relaxed the time frame for investing in the Senior Citizens’ Savings Scheme (SCSS). As per rules, one is supposed to invest in retirement funds within one month of retiring. However, those who retired recently especially during the lockdown period can now invest in the scheme anytime up to June 30, 2020. Savings is extremely important to ensure a comfortable retirement. It gives a sense of independence to the retirees to live their lives on their own terms. Basic expenses like home rent, medical care, living expenses, transportation would be the same for all retirees. However, some retirees would love to travel abroad, eat out and make big purchases during their retirement. This is possible only with adequate savings and retirement funds. Most retirees would not want to place their life-long savings into risky stakes. They would evaluate their retirement needs and invest in such schemes that can help them reach their target corpus, lead a healthy lifestyle and thereby protect them from vagaries of the market. The retirees can choose from any of the following schemes for secured investment. Different investment schemes launched by the government for retirees: Senior Citizens’Savings Scheme (SCSS): This scheme is specially designed by the government for retirees and senior citizens above the age of 60 years. SCSS scheme offers capital protection and sovereign guarantee. Benefits of investing in SCSS: The interest earned on SCSS is 8.7%, payable quarterly and is fully taxable. The upper investment limit cannot be more than INR 15 lakhs (in multiples of INR 1,000 only). The tenure of the savings scheme is up to 5 years which can be extended to a maximum of 3 years. Deductions under 80C of Income Tax Act, 1961 can be availed under this scheme. The account can be opened in any bank or post office and is easily transferable to another. SCSS account can be opened as a single or joint account. Opening an SCSS account requires basic documentation along with xerox copies of PAN card and Aadhar card. Penalty for premature withdrawal would be 1-1.5% of the deposit amount. National Pension Scheme(NPS): This is one of the most famous and reliable post-retirement scheme backed by the government of India. NPS scheme is offered majorly to the central and state government employees. The scheme is divided into Tier I and Tier II. A small premium of INR 500 and INR 250 respectively is required to be paid by the employees during their employment to avail of this benefit. The lump-sum so accumulated shall be divided into annuities and will be paid to the employee each month after his retirement. Make Your Business GST Ready Features of investing in NPS: This scheme does not offer a fixed interest rate. It generally varies between 12% to 14%which is comparatively higher than other savings scheme. An individual makes a contribution of 10% of his monthly income and an equal contribution is made by the government. At the time of maturity, 60% of the corpus can be withdrawn, and the remaining 40% can be used to purchase annuities. Investments made up to 1.5 lakhs are liable to deductions under Income Tax Act, 1961. Opening of NPS account is entirely voluntary. It can easily be done either through online or offline mode. There is no limit to the maximum amount of contribution. Public Provident Fund(PPF): It is one of the oldest retirement schemes offered by the government specifically for tax savings. The amount invested, interest earned and the amount withdrawn in this scheme are all exempted from tax. PPF is a debt-oriented investment that offers a steady growth in savings without exposing it to high risks. Salient features of PPF: It attracts an interest rate of 8%, which is compounded annually. The minimum annual investment that is applicable is INR 500 and maximum is INR 1,50,000 payable in a lump sum or maximum of 12 deposits in a Financial year. The maturity period is the minimum tenure of 15 years, which can be extended up to 5 more years. Investors are eligible to deductions under 80C of the IT Act. It offers the flexibility of moving accounts from one bank/post office to another. This scheme is not applicable to joint accounts. Retirees can avail loans from financial institutions by putting PPF accounts as collateral security from the third year. Pradhan Mantri Shram- Yogi Maandhan Yojna (PMSYM): The government in his budget 2019 announced this mega scheme for retired unorganized sector workers whose monthly income does not exceed INR 15000. Eligibility criteria for PMSYM scheme: This scheme came into force on February 15, 2019. The age limit for the worker should be 18 to 40 years. A worker joining the young at the age of 29 years will have to contribute INR 100 per month till the age of 60 years, however, any worker joining at 18 years will have to pay only INR 55 per month. The scheme will provide an assured monthly pension of INR 3000 per month after attaining 60 years of age. Benefits of investing in retirement schemes: Investing in the above-mentioned investment schemes ensures financial and social security in retirement. They provide huge tax benefits and are generally tax deductible. Therefore, one must plan their expenses well for a comfortable retirement. When should a business apply for multiple GST registrations? A business owner is eligible to apply for multiple GST registrations for the same entity if the business operates in more than one state or several verticals in a single state. 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