Seniors with a low-risk appetite may find it difficult to secure a positive real rate of return and may expose themselves to wealth erosion. So, they must choose the appropriate investment instruments.

Senior Citizens Savings Scheme is specifically designed for catering to the needs of people in the age group of 60 years and above. Public Provident Fund, on the other hand, is one of the safest long-term and low-risk investment instruments that senior citizen investors find very attractive because of the benefits it offers.

The rate of interest on the Senior Citizen Saving Scheme has been increased to 8.2 per cent effective April 1, 2023. Also, the limit for maximum investment has been enhanced to Rs 30 lakh from this financial year. So, should you continue with your existing investment or withdraw and reinvest? 

Many banks have raised their fixed deposit rates. Here is a comparison between the government’s Senior Citizens’ Savings Scheme and senior citizens’ bank fixed deposits in terms of deposit rates, liquidity and other factors

The government has increased the interest rates for Senior Citizen Savings Scheme (SCSS) from 7.6 per cent to 8 per cent for the last quarter of FY2022-23; it was last revised in the October-December period after staying at 7.4 per cent for nine-successive quarters.

At around 7.5 per cent to eight per cent interest rates, it seems to be the most favourable rate scenario for senior citizens across fixed deposits and small savings schemes.

Retirement years are righty called the golden years, when one may spend some of the best years of one's life. Therefore, it is vital to plan properly for retirement.