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Pradhan Mantri Vaya Vandana Yojana

Posted By: Admin

Are you a senior citizen worried about market fluctuations?

Are you worried about decreasing Fixed Deposit interest rates?

Are you a Retiree searching for an Instrument that gives a fixed pension after retirement? 

 

The Answer for these questions “Pradhan Mantri Vaya Vandana Yojana” ( PMVVY).

 

PMVVY is an Assured Pension Scheme specially made for senior citizens (above age 60). This scheme can give you a fixed pension for a period of 10 years. It provides a minimum assured monthly pension of Rs 1,000 per month at a rate of 7.40% for an investment of Rs 1.62 Lakhs and maximum assured monthly pension of Rs.9,250 at a rate of 7.40% for an investment of  Rs 15.00 lakhs. 

 

Some of the notable benefits are:

  1. At the end of 10 years if the pensioner survives, the purchase price along with final pension is paid back;
  2. On death of the Pensioner within 10 years the purchase price is paid to the beneficiary;
  3. Loan can be availed after completing 3 years of the policy and maximum loan shall not exceed 75% of the purchase price;
  4. The scheme provides 98% surrender value for the expenses of treatment for any Critical/Terminal illness of self/spouse;

 

There is some eligibility Criteria for entering into this scheme:

  1. The minimum Entry age is 60 years.
  2. The policy tenure is 10 years. 

 

Mode of Pension

Minimum Purchase Price

Maximum Purchase Price

Yearly

₹ 1,56,658

₹ 14,49,086

Half Yearly

₹ 1,59,574

₹ 14,76,064

Quarterly

₹ 1,61,074

₹ 14,89,933

Monthly

₹ 1,62,162

₹ 15,00,000

 

 

Mode of Pension

Minimum Pension

Maximum Pension

Yearly

₹ 12,000

₹ 1,11,000

Half Yearly

₹ 60,000

₹ 55,000

Quarterly

₹ 3,000

₹ 27,750

Monthly

₹ 1,000

₹ 9,250

Taxation  :  Being a Pension, the entire income is taxable and therefore this scheme would be most useful for Senior Citizens with low or no tax liability. 

 

Conclusion:

 For Senior Citizens looking to get a fixed monthly pension on a guaranteed basis, PMVVY is a great offer.

 

By: Santhosh

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