Post Office Senior Citizen Scheme: How To Earn Rs 20,000 Monthly After Retirement

Many people explore various avenues to meet their financial needs after retirement. Government employees receive a pension. But what about those working in the private sector? A good scheme is available for such people. 

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Needs after retirement

Regular income is essential in retirement. Expenses don't decrease, but income stops. If you want a safe, government-guaranteed scheme, the Senior Citizen Savings Scheme (SCSS) is a great option. Available through the post office, this scheme offers financial security after retirement.

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Who is eligible for this scheme?

• Those who have completed 60 years of age can join this scheme.
• Government employees who have taken VRS between 55 and 60 years of age can also invest.
• Those retiring from Defense Services (Army, Navy, Air Force) are eligible to invest from 50 years of age.

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Benefits of investing in SCSS

This scheme currently offers 8.2% annual interest, higher than bank FDs. The investment amount is fully secure with a government guarantee. Tax deduction up to ₹1.5 lakh is available under Section 80C of the Income Tax Act. Note that interest income is taxable.

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How to earn over Rs 20,000 per month?

You can invest a maximum of Rs 30 lakhs in this scheme. At 8.2% interest, you'll earn approximately Rs 2.46 lakhs in interest annually, which translates to about Rs 20,500 monthly income. A Rs 15 lakh deposit earns Rs 10,250 monthly. This steady income is helpful for medical expenses and other needs after retirement.

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Important points

Minimum investment is Rs 1,000, in multiples of Rs 1,000. The scheme duration is 5 years, extendable by 3 years. Premature closure is available. Joint accounts with a spouse are allowed, but deposits must be in the primary holder's name.