Synopsis
With repo rate being at the lowest level seen in the last two decades, a continuation of this low interest rate regime works well for the borrowers, however, for FD investors it will only increase their woes.
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The Reserve Bank of India (RBI), in its latest bi-monthly monetary meet held on April 7, 2021, has decided to keep the repo rate unchanged yet again. This is the sixth time in a row the apex bank has kept the key rates unchanged.
The repo rate and reverse rate remain at 4% and 3.35%, respectively, after the announcement. No change in the repo rate was expected as the central bank is expected to tame the yields of government securities due to higher borrowings planned by the government in FY 2021-22.
Retirement planning: How to calculate retirement corpus
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Synopsis
The sooner you want to retire, the longer will be your post retirement life. As a result, on one hand, you will have to arrange a bigger retirement corpus for a longer retired life, and on the other hand you will have lesser time to save the required amount.
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Saving for retirement is possibly one of the most important financial goals. This is because accumulating an adequate corpus will help one live a financially comfortable life post retirement. And knowing how much to save, will help during the pre-retirement phase, i.e., the accumulation stage. So, how does one decide how much to save for retirement?
grandfather s hands with the savings and the plant growing
Investment in Senior Citizens Savings Scheme is available for deduction under Section 80C subject to the limits prescribed.
Q.I am about 81 years’ old. I desire to go for either Senior Citizens Savings Scheme or single premium Pradhan Mantri Vaya Vandana Yojana. Will I get tax relief under section 80C for the amounts invested in these schemes subject to limit of ₹1.5 lakh. I got no explicit information from Google search. Could you please advise me?
S.N. Bhadra
A. Investment in Senior Citizens Savings Scheme is available for deduction under Section 80C subject to the limits prescribed. Investment in Pradhan Mantri Vaya Vandana Yojana is not covered under Section 80C.
The Budget that was: From the lens of a senior citizen March 3, 2021, 6:11 PM IST
Introduction
India is a young nation with a rapidly ageing population. The Indian Census 2011 observes that seniors will constitute almost 12.5% of the total population in the country by 2026 and surpass 19.5% by 2050. Senior interests have often taken a back seat, but unlike past years, there is an increase in the government focus on the changing needs of seniors. The recent Draft Policy for Senior Citizens introduced earlier in 2020, launch of ‘Decade of Healthy Ageing’ initiative by Dr Harsh Vardhan aligning to the UN directive, and the recent Longitudinal Ageing Study in India are all testament to increased government action on prioritizing seniors and their needs.