Pradhan Mantri Vaya Vandana Yojana

Every now and then, the Government of the country tries to offer financial assistance to the Senior Citizens. The purpose of such financial schemes is to make the individuals above 60 years economically independent. They can invest directly in pension schemes and get benefited with a guaranteed monthly income. Elderly people are also free to make their choices of getting monthly, quarterly, half-yearly, or else yearly mode of pension in proposition to their financial requirements.

PM Narendra Modi has commenced Pradhan Mantri Vaya Vandana Yojana (PMVVY) in collaboration with Life Insurance Corporation of India (LIC). The newly inaugurated pension scheme comes under non-participating and non-linked subsidies by the Central Government for all senior citizens who are aged 60 years and above. The terms and conditions of the PMVYY pension scheme were modified recently by the finance ministry to enlarge the scope of the benefits. The benefits of the scheme were extended till March 31, 2023, along with a guaranteed interest rate of 7.40 percent per annum for FY 2020-21. According to some sources of LIC, the pension scheme provides an assured monthly income of up to Rs 10,000 for 10 years (Economic Times).

Annuity or retirement plans offer the double advantage of speculation and protection spread. By contributing a specific sum normally towards your benefits plan, you will amass an extensive aggregate in a stage-by-stage way. This will guarantee a consistent progression of assets once you resign. Public Provident Fund is one of the most famous retirement arranging plans in India. At the point when you begin adding to your retirement early, the assets fabricate protected brilliant year cash savvy throughout the long term. A wisely picked retirement plan can assist you with transcending money returns because of the intensity of interest generated.

With a tenure of 10-years, the scheme can be bought both offline as well as online. During the next two financial years, the applicable assured rate of interest for the policies sold will be thoroughly reviewed as well as decided at the starting of each financial year by the government. The minimum investment has also been revised to ₹1,56,658 for a pension of ₹12,000 per annum and ₹1,62,162 for getting a minimum pension amount of ₹1000 per month under the scheme.

The maximum pension to be received by the individuals as per their choice will be:

• Rs 9,250 per month,

• Rs 27,750 per quarter,

• Rs 55,500 half-yearly

• Rs 1,11,000 on annual pay-out basis

The noticeable features of the Pradhan Mantri Vaya Vandana Yojana (PMVVY) are:

• On the demise of the person insured inside the policy duration, the price tag of the arrangement will be directly given to the nominee of the policy

• The pension scheme can be procured by both the mediums, offline by visiting a branch of LIC or online from the official website of the LIC

• In case an individual requires the assets for a terminal disease or basic sickness, at that point he can give up his policy arrangement and 98% of the sum put resources into the pension scheme will be discounted back.

• At the same time, a loan can also be taken against the purchased policy plan after the fulfilment of 3 years of the term of the approach. The greatest credit of 75% of the approach cost will be conceded.

The eligibility criteria in detail to buy Pradhan Mantri Vaya Vandana Yojana (PMVVY) is:

• The term of the pension plan is ten years.

• The method of annuity instalment incorporates yearly, half-yearly, quarterly, or month to month.

• The yearly least purchase price is INR 144,578, and the Maximum purchase price is INR 14,45,783

• The minimum monthly pension sum is INR 1000, and the Maximum benefits’ sum is INR 10,000

This LIC Pension Plan, however, does not offer Tax benefits under segment 80C of the Income Tax Act. This implies the sum put resources into the plan can't be asserted as a derivation from salary under area 80C to diminish charge risk in the time of speculation. The money obtained from the plan is additionally available according to annual assessment laws. The plan is also exempted from the rules of Goods and Services Tax (GST).

Each individual has distinctive monetary objectives and requirements. The beneficial thing, however, is that today there are a lot of benefit plans accessible in the market; you can pick the one that best suits your retirement plans. If you have surplus assets, you can put the sum in a single amount and get annuity instalments right away. For individuals who can't bear the cost of paying in a singular amount and lean toward a regularly scheduled instalment approach, you can decide to put your money in the Pradhan Mantri Vaya Vandana Yojana (PMVVY).