For the RE- tired

 Xxxx Jain:
Please advice if someone have done a comparison between Senior citizens saving scheme vs debt funds. I m looking to make a lumpsump contribution at this stage and need to find which debt instrument is better in terms of returns. Thanks

Rajeeve Kaushik:

With the phasing out of guaranteed pension and FD interest at historical lows( as compared to 2 decades ago the retirees have come into dilemmas. Despite lot of options available they are unable to find the difference between most of them and decide.
When someone is looking for comparison between scss and debt funds then it is obviously for the senior citizen who has retired.
The person is moderately to high risk averse and will not like to take chances with his retirement nest which is quite fair to expect.
It is the mind set which will control the choices.
For the purpose and taking taxation into account I would suggest that retired person himself takes the call as to he will like a fluctuating return or a fixed return.
Few other factors have to be taken into account here..
1. Is the person drawing pension or not.
2. Capital gains from debt funds will not be able to be adjusted against the deductions.
3. Scss gives returns higher than a normal FD and quite in line with the debt funds.

 4. Finally and more importantly it is the risk taking ability of the person that will decide the option.