There is a government scheme for senior citizens that will provide substantial pension right away. The principle money is safe and returns are available at regular intervals. The best part is that after the age of 60, both husband and wife can receive a guaranteed monthly pension of Rs 8500 under this government scheme. Another lucrative feature is that after ten years, the entire investment will be returned. There are only a few months left for senior citizens to invest in the Pradhan Mantri Vaya Vandana Yojana (PMVVY). SIC is in charge of this scheme.
The government provides a subsidised pension scheme for senior citizens aged 60 and above through the PMVVY scheme. Under this scheme, immediate monthly, quarterly, half-yearly or annual pension facility is given to senior citizens. Investors have to pay a lump sum of Rs 15 lakh to take advantage of this scheme.
Deadline to Apply
Any person over the age of 60 can invest in this scheme until March 31, 2023. With the PMVVY sale coming to an end in a few months, let’s take a look at how much benefits, eligibility, and pension senior citizens can receive by joining this scheme.
Eligibility for PMVVY
According to the LIC website, senior citizens of India aged 60 years (completed) and above can invest in the PMVVY scheme. There is no upper age limit for purchasing this plan.
PMVVY Scheme Term and Pension Payment
This scheme for senior citizens is valid for ten years. Pension payments under PMVVY can be made monthly, quarterly, half-yearly, or annually, depending on the mode selected by the buyer. The first pension instalment under PMVVY begins one year, six months, three months, or one month after the scheme is purchased. For example, if you choose monthly pension payments and purchase the plan now, your pension will begin after one month.
PMVVY Pension Purchase Price
The minimum pension available through PMVVY investment is Rs 1000 per month, with a maximum pension of Rs 9250 per month. The scheme’s minimum purchase price for monthly pension is Rs 1,62,162, Rs 1,61,074 for quarterly pension, Rs 1,59,574 for half-yearly pension, and Rs 1,56,658 for annual pension. The scheme allows for a maximum purchase price of Rs 15 lakh for a monthly pension, Rs 14,89,933 for a quarterly pension, Rs 14,76,064 for a half-yearly pension, and Rs 14,49,086 for an annual pension.
Interest Rate on PMVVY
For Financial Year 2022-23, the Scheme shall provide an assured pension of 7.40% p.a. payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March, 2023.