Interesting Pension Scheme For Senior Citizens by PMVV Yojna

Having a stable income after retirement is very important. Everyone wants to have a stable income after retirement.  There are very few pension plans in the market that allow people aged 60 years and above to invest and guarantee returns. We are telling you about one such pension scheme. The government of India has launched Pradhan Mantri Vaya Vandana Yojana with the revised rate of pension for citizens of 60 years and above. LIC of India is fully authorized to operate this scheme.

This scheme is a Social Security Scheme and Pension Plan, this scheme belongs to the Government of India but is being run by LIC. The maximum limit to invest under this scheme was earlier seven and a half lakhs, which has now been increased to Rs 15 lakhs, along with this, the deadline to invest in this PMVVY Scheme 2022 was earlier 3 May 2018 which was increased to 31 March 2020 and not it has been further extended to 31st March 2023.

Pradhan Mantri Vaya Vandana Yojana is a pension scheme announced by the Government of India exclusively for senior citizens aged 60 years and above, which was available from 4 May 2017 to 31 March 2020. This scheme has now been extended till 31st March 2023.

The scheme will be available for sale for three financial years from 26/05/2020, i.e. till 31st March 2023. This plan can be purchased offline and online from LIC of India at www.licindia.in. The plan can be purchased by paying a lump sum purchase price. The pensioner can choose either the amount of pension or the purchase price. At the time of purchase, the pensioner can choose the monthly/quarterly/half-yearly or annual pension mode.

The minimum purchase price is Rs 1,62,162/- for monthly mode, Rs 1,61,074/- for quarterly mode, Rs 1,59,574 semi-annually and Rs 1,56,658 for yearly mode. The maximum pension under this scheme will be one lakh rupees.

What is The Advantage?

The scheme initially gives a return of 7.40% p.a. for the year 2020-21 and is reset every year thereafter. The scheme will give an assured pension of 7.40% p.a. for the financial year 2021-22. This assured rate of pension will be payable for the entire policy term of 10 years for all policies purchased up to March 31, 2022.
This scheme is exempted from GST.

On survival of the pensioner till the end of the policy term of 10 years, the purchase price and final pension installment will be payable.

This plan allows premature exit for treatment of any serious/ incurable disease of self or spouse. 98% of the purchase price will be refunded on such premature exit.

In case of the death of the pensioner during the policy term of 10 years, the purchase price will be paid to the beneficiary.

Pradhan Mantri Vaya Vandana Yojana New Update

The Union Cabinet on Wednesday extended the last period of investment under this scheme from 31 March 2020 to 31 March 2023. The purpose of the PMVVY scheme implemented through Life Insurance Corporation (LIC) is for senior citizens (60 years and above) is to be paid an assured minimum pension on the basis of assured return on purchase price/subscription amount. Under this scheme, senior citizens will have to invest Rs 1,56,658 for a minimum pension of Rs 12,000 per annum and Rs 1,62,162 to get a minimum pension amount of Rs 1000 per month.

Important things to know-

Minimum Entry Age: 60 Years (Completed)

Maximum Entry Age: No Limit

Policy Term: 10 Years

Investment limit: Rs 15 lakh per senior citizen