The growth of a country lies in the growth of its countrymen. With Pandemic entering our lives without an invitation, shaking the core and refusing to leave, uncertainty has gripped the minds of people. With so many changes one needs to adapt, however, one change is particularly hard – sustaining and reviving the finances. This change is even harder for retirees who rely on a certain set of income in their all relaxed years of life. 

Interest rates have dipped down to keep the economy afloat. How should the senior citizens in this case still manage their day-to-day expenses without the financial woes? Government has introduced the Pradhan Mantri Vaya Vandana Yojna (PMVVY) scheme to specifically cater to the 60+ segments with a viable solution to let their hard-earned money work equally hard for them.

What is Pradhan Mantri Vaya Vandana Yojna?

The Pradhan Mantri Vaya Vandana Yojna (PMVVY) scheme is catered specifically towards senior citizens. It’s a pension scheme that pays a yearly interest whilst keeping the principal amount secure. It’s ideal for those in their sweet sixties and older, as it protects their hard-earned money, provides them with an interest-earning and is secured by the Government. 

What are the benefits of this scheme?

Senior citizens who choose to invest in the Pradhan Mantri Vaya Vandana Yojna scheme enjoy the below: 

1. Pension scheme for 10 years. 
2. For investors who subscribe to this policy this year, they can earn a fixed interest at 7.40% until March 2023. Thereafter, on April 1st every year, the finance ministry will adjust the interest rate of return at the beginning of the financial year.
3. Pensioners can remit their earned interest on a monthly, quarterly, half-yearly or yearly basis. 
4. The scheme can be easily signed up – offline or online through the LIC website. 
5. Investors in this scheme, depending on your invested amount can earn from Rs 1000/- monthly to as high as Rs 9,250/- month on month
6. The maximum investment, one can make in this scheme is Rs 15Lakhs 
7. If you meet with any terminal illness, during the tenure period or if you encounter a critical illness, investors can withdraw the money. 98% of the amount will be remitted to the policyholder. 
8. In case of death within the pension tenure, lump-sum purchase amount will be processed to the beneficiary. 
9. In case of survival, at the end of ten years, the policyholder will receive the annuity scheme purchase price plus the final pension payment.

Important facts 

1. 60+ citizens of India are only eligible for this scheme
2. Pension is processed online to an aadhar-linked payment via NEFT.
3. Based on the choice you make, you will be paid a pension on a monthly, quarterly, half-yearly or yearly basis.