Pension Scheme for Senior Citizens
Govt to launch pension scheme for elderly with 8% return today
Min.Amt. Max.Amt.Min.Pen. Max.Pen
Yearly 1,44,578 7,22,892 12,000 60,000
Half-year 1,47,601 7,38,007 6,000 30,000
Quarterly 1,49,068 7,45,342 3,000 15,000
Monthly 1,50,000 7,50,000 1,000 5,000
Note: Rs.7.5 lakh can get you 5000 p.m. pension for 10 yrs
Government will formally launch a pension scheme for senior citizens on Friday which promises an assured return of 8%. Finance, defence and corporate affairs minister Arun Jaitley will launch the Pradhan Mantri Vaya Vandana Yojana (PMVVY), a measure which was announced in the 2017-18 budget. The scheme is open to senior citizens of 60 years and above. It can be purchased offline as well as online through the state-run Life Insurance Corporation (LIC) of India which has been given the mandate to operate the scheme. The scheme is part of the government’s overall plan to provide pension benefits to large section of the population which lacks social security benefits.The plan provides an annual assured return of 8% payable monthly (equivalent to an annual effective rate of 8.30%) for 10 years. The scheme has been available from May 4 and closes on May 3 next year. Pension will be payable at the end of each period, during the policy term of 10 years, and would depend on the frequency of monthly, quarterly, half-yearly, or yearly as chosen by the pensioner at the time of the purchase of the plan. The scheme is exempted from the Goods & Services Tax, a finance ministry statement said. On survival of the pensioner to the end of the policy term of 10 years, the purchase price along with final pension instalment will be paid. One can avail a loan up to 75% of the purchase price after 3 years of the policy. On death of the pensioner during the policy term of 10 years, the purchase price shall be paid to the
(Source: Times of India, 21 July 2017) more
Min.Amt. Max.Amt.Min.Pen. Max.Pen
Yearly 1,44,578 7,22,892 12,000 60,000
Half-year 1,47,601 7,38,007 6,000 30,000
Quarterly 1,49,068 7,45,342 3,000 15,000
Monthly 1,50,000 7,50,000 1,000 5,000
Note: Rs.7.5 lakh can get you 5000 p.m. pension for 10 yrs
Government will formally launch a pension scheme for senior citizens on Friday which promises an assured return of 8%. Finance, defence and corporate affairs minister Arun Jaitley will launch the Pradhan Mantri Vaya Vandana Yojana (PMVVY), a measure which was announced in the 2017-18 budget. The scheme is open to senior citizens of 60 years and above. It can be purchased offline as well as online through the state-run Life Insurance Corporation (LIC) of India which has been given the mandate to operate the scheme. The scheme is part of the government’s overall plan to provide pension benefits to large section of the population which lacks social security benefits.The plan provides an annual assured return of 8% payable monthly (equivalent to an annual effective rate of 8.30%) for 10 years. The scheme has been available from May 4 and closes on May 3 next year. Pension will be payable at the end of each period, during the policy term of 10 years, and would depend on the frequency of monthly, quarterly, half-yearly, or yearly as chosen by the pensioner at the time of the purchase of the plan. The scheme is exempted from the Goods & Services Tax, a finance ministry statement said. On survival of the pensioner to the end of the policy term of 10 years, the purchase price along with final pension instalment will be paid. One can avail a loan up to 75% of the purchase price after 3 years of the policy. On death of the pensioner during the policy term of 10 years, the purchase price shall be paid to the
(Source: Times of India, 21 July 2017) more
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There are some pensioners who invest only in bank FDs and were criticizing the Government for reduction in bank GD rates. Government has launched this scheme to cater to those retired persons who do not know how to manage their money and were blaming the Government for poor returns on FDs. One is locking the return for 10 years. Money will move from bank FDs to Pension scheme. It is strictly not an FD. more
Jul 27
I do not understand why it is called as pension scheme. It is a simple fixed deposit scheme with LIC. If you deposit in a any good company i am sure you will get 8% or more per annum. There is no point in investing. Better find some good balanced funds which are giving better returns like HDFC or LT more
Jul 26
On death of the Pensioner during the Policy term of 10 years, beneficiary receives the purchase price.
On survival of the Pensioner at the end of 10 years, Purchase price along with final pension instalment will be paid by LIC. more
On survival of the Pensioner at the end of 10 years, Purchase price along with final pension instalment will be paid by LIC. more
Jul 22
There is nothing new in this scheme. RBI Savings Bond offer 8% interest half yearly and the tenure is 6 years. There is no limit on investment and interest received is taxable. We have been requesting PM & FM to restore the rate of interest to 9.3% on Senior Citizens Savings Scheme 2004, which is a welfare scheme to provide a regular income stream to retirees from private sector. The maximum investment allowed is 15 Lakh Rupees. The Scheme was started @ 9% interest in 2004 and the rate was increased to 9.3% in April 2015 after 11 years. So instead of increasing the interest rate to 10% to provide relief to retirees in view of rising prices of essential commodities and healthcare, the Bureaucrats have reduced the interest rate to 8.3%, and will go on reducing it every quarter to match it with interest rate on Fixed Deposits. Bureaucrats have managed to convince the FM by making him launch "Pradhan Mantri Vaya Vandana Yojana" for Senior Citizens @ 8% interest with maximum investment of 7.5 Lakh rupees, which does not provide any additional relief to Senior Citizens. Even the promises made to Senior Citizens in BJP Election Manifesto 2014 have not been delivered in 3 years of NDA rule. more
Jul 22
