Retirement Scheme for Elderly, Check Eligibility and Other Benefits of Pradhan Mantri Vaya Vandana Yojana

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Retirement Scheme for Elderly, Check Eligibility and Other Benefits of Pradhan Mantri Vaya Vandana Yojana

New Delhi: Having a stable income after retirement is very important. There aren’t many retirement plans on the market that allow people aged 60 and over to invest and earn a guaranteed rate of return. We are talking to you about such a pension plan. The Indian government has presented Pradhan Mantri Vaya Vandana Yojana with the modified pension rate for citizens aged 60 and over. LIC of India is solely authorized to operate this program.

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a retirement scheme announced by the Government of India exclusively for those aged 60 and above, which was available from 4 May 2017 to 31 March 2020. The scheme is now extended till 31 March 2023 for three years after March 31, 2020.

This plan will be available for sale from 26/05/2020 for three fiscal years i.e. until 31 March 2023. This plan can be purchased offline and online from LIC of India at www .licindia.in.

The program can be purchased upon payment of a fixed purchase price. The retiree can choose either the amount of the pension or the redemption price. At the time of purchase, the pensioner can choose a monthly/quarterly/half-yearly or annual pension mode.

The minimum purchase price for the monthly mode is Rs 1,62,162/-, for the quarterly mode Rs 1,61,074/-, the same semi-annual price is Rs 1,59,574 and for the annual mode Rs 1,56,658. The maximum pension obtainable under this scheme will be Rs. 9,250 per month, Rs. 27,750 per term, Rs. 55,500 per semester and Rs. 1,11,000 per year.

Benefits

* The plan provides an assured rate of return of 7.40% per annum for the year 2020-21 per annum initially and thereafter to be reset annually. For the financial year 2021-22, the scheme will provide a guaranteed pension of 7.40% per annum payable monthly. This insured annuity rate will be payable for the full term of the 10-year policy for all policies taken out through March 31, 2022.

*The pension is payable at the end of each period, for the duration of the 10-year contract, according to the monthly/ quarterly/ half-yearly/ annual frequency chosen by the retiree at the time of purchase.

*The program is exempt from GST.

*On the survivor’s survival to the end of the 10-year policy term, the purchase price and the final pension payment will be payable.

* A loan of up to 75% of the purchase price will be authorized after three years of insurance (to meet liquidity needs). The interest on the loan will be recovered from the pension payments and the loan to be recovered from the proceeds of the claim.

*The program also allows for early discharge to treat any critical/terminal illness of self or spouse. 98% of the purchase price will be refunded in the event of premature release.

*On the death of the pensioner during the term of the 10-year contract, the purchase price will be paid to the beneficiary.

*The maximum pension ceiling applies to the whole family; the family will include the retiree, their spouse and dependents.

* Loss of earnings due to the difference between guaranteed interest and actual interest earned and expenses relating to administration will be subsidized by the Government of India and reimbursed to the Company.

Some Important Facts

Minimum entry age: 60 (completed)

Maximum entry age: no limit

Policy term: 10 years

Investment limit: Rs 15 lakh per senior

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