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PMVVY: A Pension For Senior Citizens

IndianMoney.com Research Team | Updated On Tuesday, May 08,2018, 12:51 PM

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PMVVY: A Pension For Senior Citizens

 

 

 

Invest up to Rs 15 Lakhs in PMVVY and enjoy a pension of Rs 10,000 a month for 10 years.

Retirement is enjoyable only if you have money. That’s why life insurers offer annuity plans. Want to have a happy retirement? Then study the best Pension Plans in India. The Government of India wants senior citizens to enjoy a great retired life. This is why Finance Minister Arun Jaitley has made a proposal to extend the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme, up to March 2020.

What is PMVVY? PMVVY was launched on May 4th 2017. It is a pension scheme heavily subsidized by the Government of India. The money you invest in PMVVY is called the Purchase Price.

Should you invest in PMVVY to enjoy a pension? Let’s find out. Want to know more on Retirement Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

 

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PMVVY: A Pension For Senior Citizens

 

If you are a senior citizen, there’s good news. PMVVY will give you income in old age. If you are a senior citizen, invest up to a maximum of Rs 15 Lakhs in the Pradhan Mantri Vaya Vandana Yojana, and get Rs 10,000 a month for 10 years.

 

1. Why invest in PMVVY?

 

If you are a senior citizen, simply invest money up to Rs 15 Lakhs in the PMVVY Scheme which is offered by LIC (Life Insurance Corporation of India). Why should you do this? PMVVY will give you a fixed monthly payout of Rs 10,000 a month for 10 years.  

The Union Cabinet has approved the plan to double the investment limit under PMVVY from Rs 7.5 Lakhs to Rs 15 Lakhs. This is same as the investment limit under the Senior Citizen’s Saving Scheme. What’s great about PMVVY? PMVVY is a pension scheme which gives you 8% assured returns. You don’t need to worry about the fall in interest rates. Subscription for PMVVY has been extended from May 4th 2018 to March 31st 2020.

 

SEE ALSO: Pension Plans for Retirement

 

2. How does PMVVY work?

 

PMVVY is a pension scheme run by LIC (Life Insurance Corporation of India).

 

  • If you invest Rs 15 Lakhs in this scheme, you will enjoy a monthly pension of Rs 10,000 for 10 years.
  • If you invest just Rs 7.5 Lakhs in this scheme, you will enjoy a monthly pension of Rs 5,000 for 10 years.

 

Income earned from PMVVY is taxable. What happens if a pensioner dies before the 10-year policy term? Oh, the purchase price will be paid to the beneficiary/nominee. You can opt to get the pension on a monthly/quarterly/half yearly or a yearly basis. You are allowed premature exit from PMVVY for treatment of a critical/terminal illness, suffered by you or spouse. For this type of a premature exit from the PMVVY, you get 98% of the purchase price as a refund.

Loan against PMVVY: You can get a loan up to 75% of the purchase price, three years after availing the PMVVY scheme. The interest on this loan will be recovered from pension installments. Be Wise, Get Rich.

 

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IndianMoney.com Research Team

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