Senior Citizens Savings Scheme (SCSS) Calculator: How to Earn Rs 25,000 Monthly for an Independent Life?

The Senior Citizens Savings Scheme (SCSS) offers retirees a government-backed investment with an 8.2% interest rate and quarterly payouts. A Rs. 30 lakh investment yields approximately Rs. 20,500 monthly.

Retirement brings with it the joy of freedom, but it also raises a crucial question: how do you ensure a steady monthly income to maintain financial independence? For many senior citizens, the Senior Citizens Savings Scheme (SCSS) has emerged as a trusted option. With its government backing, attractive interest rates, and quarterly payouts, SCSS provides the peace of mind that retirees often seek.

But how much should you invest if you want a fixed income — say, Rs 25,000 every month? Let’s break it down with the help of an SCSS calculator.

What is SCSS?

The Senior Citizens Savings Scheme (SCSS) is a government-supported investment plan designed specifically for individuals aged 60 years and above. It allows investments up to Rs 30 lakh and offers guaranteed returns with interest rates revised quarterly by the government. Currently, the scheme offers 8.2% per annum (as of Q2 FY25).

How Much Investment Do You Need for Rs 25,000 Monthly?

To earn Rs 25,000 per month (or Rs 3 lakh annually), we can use the current SCSS rate:

• Annual income target: Rs 3,00,000
• Interest rate: 8.2%
• Required investment: Rs 3,00,000 ÷ 0.082 = Rs 36.58 lakh

However, since SCSS has a maximum limit of Rs 30 lakh, you can’t park the entire Rs 36.5 lakh here. This means you can earn up to Rs 2.05 lakh annually (about Rs 17,000 monthly) from SCSS alone.

To bridge the gap and reach Rs 25,000 per month, you may need to combine SCSS with other safe investments such as:

• Post Office Monthly Income Scheme (POMIS)
• RBI Floating Rate Bonds
• Senior citizen-focused bank FDs

Example with SCSS at Rs 30 lakh

If you invest the maximum Rs 30 lakh in SCSS at 8.2%, here’s what you get:

• Annual Interest: Rs 2,46,000
• Quarterly Payouts: Rs 61,500
• Monthly Equivalent: Around Rs 20,500

This amount can comfortably cover essential expenses, but if you want a higher cushion of Rs 25,000, pairing SCSS with another income-generating scheme is the smarter move.

Why SCSS is Popular Among Retirees

• Government-backed security – No risk of losing principal.
• Attractive interest rate – Better than most bank FDs.
• Quarterly payouts – Provides regular cash flow.
• Tax benefits – Eligible for deduction under Section 80C (up to Rs 1.5 lakh).