Top 5 senior citizen pension schemes to secure happy retirement

Whether you are in a government or private job, the National Pension System (NPS) is an excellent option for securing a monthly pension. NPS is a market-linked scheme, meaning its returns depend on market performance, but it has historically provided an average return of around 10%. Any Indian citizen between the ages of 18 and 70 can participate in this scheme. Contributions must be made until the age of 60, after which 60% of the accumulated amount is provided as a retirement fund, while 40% is allocated towards an annuity, which forms the basis of your pension. The higher the annuity amount, the greater your pension.

For a reliable pension in old age, the Systematic Withdrawal Plan (SWP) is a viable option. Through SWP, investors receive a fixed amount monthly from their mutual fund investments. To benefit from SWP, you need to accumulate a substantial fund through SIP or other investment schemes during your working years. Upon retirement, you can opt for SWP, where payments are made by selling mutual fund units. The plan can be customized to provide monthly, quarterly, or annual payouts. If your fund runs out, the SWP payments will stop. Alternatively, you can use your retirement savings to set up an SWP.

Atal Pension Yojana (APY) offers another way to ensure regular income in old age, specifically designed for non-taxpayers. Individuals between 18 and 40 years old can enroll in this scheme by contributing a small amount each month until they reach 60. Afterward, participants receive a monthly pension ranging from Rs 1,000 to Rs 5,000, depending on their contribution level.

The Employee Pension Scheme (EPS) is tied to the contributions made by private sector employees to the Employees' Provident Fund Organisation (EPFO). Both the employee and employer contribute to this fund, with a portion directed towards EPS. If you have continuously contributed to EPS for at least 10 years, you become eligible for a pension upon retirement, with the amount based on your contribution.

The Post Office Monthly Income Scheme (POMIS) is a government-guaranteed deposit scheme that provides a secure way to earn monthly income. You can open a single or joint account, with maximum deposits of ₹9 lakh for single accounts and Rs 15 lakh for joint accounts. Deposits are made for a maximum of 5 years, and the scheme offers an interest rate of 7.4%. For example, a joint account could yield up to Rs 9,250 per month. If you wish to continue after 5 years, you can open a new account.