Fixed deposits and monthly pension schemes are two most popular investment options for senior citizens.
Speaking of pension schemes, one such is the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme. Before entailing more of its features and scheme details, we’d like to inform that this scheme has now been tweaked by the finance ministry.
- 1 Pradhan Mantri Vaya Vandana Yojana Modifications
- 2 PMVVY Features (Detailed)
- 3 What are these Modifications?
- 4 PMVVY- Minimum and Maximum Investment
- 5 PMVVY – Minimum and Maximum Pension
Pradhan Mantri Vaya Vandana Yojana Modifications
After modifying the PM Vaya Vandana Yojana (PMVVY) pension scheme for senior citizens by the finance ministry, Life Insurance Corporation (LIC) has launched the non-linked, non-participating, pension plan subsidized by the Centre.
It has launched the details of the 2020 modified PMVVY.
This scheme had earlier closed on March 31, 2020 but was recently modified and extended by the government for another three financial years till March 2023.
PMVVY Features (Detailed)
- PMVVY is a pension scheme for senior citizens.
- It comes with guaranteed returns on monthly, quarterly, half-yearly or on an annual basis for a period of 10 years.
- Any individual who is 60 or above the age of 60 can avail the benefits of Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme.
- There is no entry limit.
- The investor gets to decide on the basis of the pension amount he/she wants to purchase, or the price to be invested in the scheme.
- The maximum investment that can be made should be under Rs 15 lakh per senior citizen, while the maximum monthly pension in PMVVY is Rs 9,250 per senior citizen.
- The pension in PMVVY is not dependant on the age of the investor.
What are these Modifications?
The finance ministry has extended the pension plan till 31 March, 2023 with assured interest rate of 7.40% p.a. for FY 2020-21.
This plan will start for sale from Tuesday for three financial years — up to March 2023. LIC added that in order to purchase the scheme, you can do it online as well as offline from LIC website.
LIC is the sole institution which is authorised to mobilize funds in the scheme that offers a total payout not exceeding Rs 15 lakh.
- The police has a tenure of 10 years.
- It will provide a relief to senior citizens, as the scheme will provide a rate of return of 7.40% per annum, payable monthly i.e. 7.66% per annum for the entire duration of ten years.
- The Modified PMVVY will carry lesser interest rate on the investment than before.
- Senior citizens can draw a minimum pension of Rs 1,000 per month depending on the amount invested in the scheme.
- The maximum pension amount is limited at Rs 9,250 per month.
- In the modified version, the interest rate will vary depending upon the financial year (FY) in which the investment is made.
- The government will declare the PMVVY interest rates for FY 2021-22 and 2022-23, at the start of each of these years.
- The annual reset of the assured rate of interest will be effective from April 1 of the FY, in line with the revised rate of returns of Senior Citizens Saving Scheme (SCSS).
- In this version, the maximum rate of interest is capped at 7.75%.
PMVVY- Minimum and Maximum Investment
For Yearly Pension
Minimum investment: Rs 1,56,658
Maximum investment : Rs 14,49,086
For Half-Yearly Pension
Minimum investment : Rs 1,59,574
Maximum investment : Rs 14,76,064
For Quarterly Pension
Minimum investment : Rs 1,61,074
Maximum investment : Rs 14,89,933
For Monthly Pension
Minimum investment : Rs 1,62,162
Maximum investment : Rs 15,00,000
PMVVY – Minimum and Maximum Pension
- Rs. 1,000 per month
- Rs. 3,000 per quarter
- Rs.6,000 per half-year
- Rs.12,000 per year
- Rs 9,250 per month
- Rs. 27,750 per quarter
- Rs. 55,500 per half-year
- Rs. 1,11,000 per year