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The Government of India comes up with a number of social security schemes every now and then based on the need of the hour. Public Provident Fund (PPF), Atal Pension Yojana, National Pension Scheme, Senior Citizens Saving Scheme, and many other schemes are already functional for years now.
They are popular among those who are planning and managing their retirement. A new addition to the list is Pradhan Mantri Vaya Vandana Yojana (PMVVY).
PMVVY is a retirement and pension scheme that is operated and managed by the Life Insurance Corporation of India (LIC), the largest life insurance provider in India. Here are all the details you may want to know about the scheme.
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is retirement cum pension scheme announced by the Indian Government. The plan is subsidised by the government and was launched in May 2017.
The money invested by the purchasers of the scheme is called the purchase price. As the sovereign guarantees back the scheme, it offers an assured rate of return on investment.
The scheme pays out regular pension and the frequency can be monthly, quarterly, or yearly. The PMVVY is an excellent alternative to traditional bank deposits.
There are no specific eligibility criteria as such for PMVVY scheme except that the subscriber must be a senior citizen (above the age of 60 years). The applicant must be an Indian citizen.
There is no maximum entry age for PMVVY scheme. Also, the applicant must be ready to avail the policy term of ten years. The minimum purchase price is Rs 1.5 lakh, and it offers a monthly pension of Rs 1,000.
The maximum purchase price is Rs 15 lakh, and it offers a monthly pension of Rs 10,000.
The following are the requisite documents to subscribe under the PMVVY scheme:
The following are some of the key benefits of subscribing to PMVVY scheme:
One can subscribe to the PMVVY scheme in the following ways:
i) Online procedure:
ii) Offline Procedure
As mentioned earlier, the minimum purchase price is Rs 1,50,000 for a monthly pension of Rs 1,000. The amount of pension that a subscriber receives would depend on their purchase price:
|Pension mode||Minimum amount of pension||Minimum amount of investment||Maximum amount of pension||Maximum amount of investment|
|Monthly||Rs 1,000||Rs 1,50,000||Rs 10,000||Rs 15,00,000|
|Quarterly ||Rs 3,000||Rs 1,49,068||Rs 30,000||Rs 14,90,684|
|Bi-annually||Rs 6,000||Rs 1,47,601||Rs 60,000||Rs 14,76,014|
|Annually ||Rs 12,00||Rs 1,44,578||Rs 1,20,000||Rs 14,45,784|
PMVVY is a great investment option for senior citizens. This scheme can be considered by those senior citizens that are looking for a regular pension. However, to invest in this scheme, one should have a considerable amount in hand.
The rate of interest is fixed at 8% to 8.3% for 10 years.
In case of a medical emergency (self and spouse), the subscribers can withdraw 98% of the purchase price.