SWP vs SCSS: How much senior citizens can get in a month on Rs 20 lakh investment in each, see calculations
Explore how unique financial needs shape investment strategies. Learn about lump sum investments, systematic investment plans (SIPs), capital growth and regular income options to build a plan that suits your goals.
Investment strategies vary based on individual financial needs and goals. While some prefer lump sum investments for immediate growth, others opt for systematic investment plans (SIPs) to stagger contributions over time. Similarly, investors may prioritise capital appreciation or seek regular income for stability. Understanding these preferences is crucial for crafting a personalised financial plan that aligns with your objectives. Dive into the details of these strategies to make informed decisions and maximize the potential of your investments.
(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning)
SWP (Systematic Withdrawal Plan)
Every individual has unique financial needs, leading to distinct investment strategies. Some investors prefer lump sum investments, while others opt for staggered contributions through systematic investment plans (SIPs). Similarly, while certain investors prioritize capital growth, others focus on generating regular income from their investments.
Calculator Benefits
Simplifies the calculation of monthly withdrawals and matured sum based on selected funds.
Withdrawal Estimates
26,100 per month withdrawal at 6% return (debt funds):
- Total withdrawal: Rs 25,05,600
- Total value: Rs 3,459
- Maturity amount: Total withdrawal + Total value = Rs 25,09,059
Rs 27,800 per month withdrawal 8% return (conservative hybrid funds):
- Total withdrawal: Rs 26,68,800
- Total value: Rs 25,182
- Maturity amount: Total withdrawal + Total value = Rs 26,93,982
Total Investment
Rs 20 lakh, with withdrawal reducing the corpus while the remainder earns interest.
Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme (SCSS) is a popular fixed-income investment option designed for senior citizens. Its primary aim is to provide a steady income stream post-retirement. Backed by the government, SCSS ensures guaranteed quarterly returns. The scheme is accessible through certified banks and post offices across India.
Eligibility
Available to individuals aged 60+ or 55+ under superannuation/VRS, and retired Defence personnel aged 50+.
Deposit Limits
Minimum Rs 1,000; maximum Rs 30 lakh. Accounts can be individual or joint with a spouse.
Interest Payment
Quarterly payouts on 1st working day of April, July, October, and January.
Account Duration
Initial 5 years, extendable for an additional 3 years. Premature closure allowed under conditions.
Total Returns
On a Rs 20 lakh investment, total interest earned in 8 years is Rs 33,12,000
In 8 years, the total interest withdrawn will be Rs 8,20,000+4,92,000= 13,12,000
Maturity after 8 years= 20,00,000+13,12,000= Rs 33,12,000