Passive Income

Hi, in the next edition of you may please elaborate on passive income schemes for people up in age as with Interest rate going south how do we protect our parents wealth so they can have steady income which keeps up with inflation. Most options today are taxable and dividends seem a good bet but not a guaranteed income... Thank you

- Bhavana Patel

Editor Responds

Thank you for writing to us. If you see, the passive income schemes are good options for the age group as returns are not taxable. For instance, you can opt for Senior Citizen Saving Scheme (SCSS) which can give you a guaranteed income (non-taxable) at current interest rate around 8.6 per cent, which is one of the highest among other such retirement schemes. Even mutual funds can be a good option for them. For more information on strategies to be adopted in retirement, you can check out our special report "Retirement Strategies" in our issue dated Aug 5-18, 2019.