The Government of India introduced the Pradhan Mantri Vaya Vandana Yojana (PMVVY) as a pension scheme exclusively for senior citizens aged 60 years and above. Managed by the Life Insurance Corporation of India (LIC), this scheme aims to provide financial security and a guaranteed pension to elderly individuals, ensuring a stable income post-retirement.
PMVVY provides retirees with financial stability by offering assured pension payments and mitigating market volatility risks.
Unlike other investment schemes influenced by market fluctuations, PMVVY safeguards seniors from economic uncertainties by guaranteeing a fixed return rate.
Investors can choose from multiple pension payout frequencies:
At the end of the policy term (10 years), the authority returns the purchase price along with the final pension installment to the subscriber.
In the event of the policyholder’s death within the policy term, the nominee receives the entire purchase price of the policy.
PMVVY permits premature exit under exceptional circumstances, such as medical emergencies of the spouse or policyholder, with a surrender value of 98% of the purchase price.
Subscribers have a 15-day free-look period (30 days for online purchase), during which they can opt out of the scheme if unsatisfied.
After three years of investment, a loan facility is available under PMVVY, allowing borrowers to avail up to 75% of the purchase price.
In case of the policyholder’s demise by suicide, the full purchase price is returned to the nominee.
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The purchase price is determined by the pension amount chosen by the applicant. The minimum and maximum purchase price varies based on the payout frequency.
| Mode of Pension | Maximum Purchase Price (INR) | Maximum Monthly Pension (INR) |
| Monthly | 15,00,000 | 9,250 |
| Quarterly | 15,00,000 | 27,750 |
| Half-Yearly | 15,00,000 | 55,500 |
| Yearly | 15,00,000 | 1,11,000 |
| Mode of Pension | Minimum Purchase Price (INR) | Minimum Monthly Pension (INR) |
| Monthly | 1,50,000 | 1,000 |
| Quarterly | 1,50,000 | 3,000 |
| Half-Yearly | 1,50,000 | 6,000 |
| Yearly | 1,50,000 | 12,000 |
PMVVY is often compared with the Senior Citizens Savings Scheme (SCSS), another government-backed retirement plan. Here’s how they differ:
| Feature | PMVVY | SCSS |
| Interest Rate | Fixed by the Government | Market-linked |
| Tenure | 10 years | 5 years (extendable by 3 years) |
| Premature Exit | Allowed (with 2% penalty) | Allowed (with penalties) |
| Investment Limit | INR 15 lakh | INR 30 lakh |
| Tax Benefits | No Section 80C Benefit | Section 80C available |
PMVVY can be purchased online and offline through Life Insurance Corporation of India (LIC) branches and its official website.
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The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a well-structured pension scheme offering financial security to senior citizens. With assured returns, flexible payout options, and loan facilities, PMVVY serves as an excellent investment avenue for retirees seeking stability. Though it lacks tax benefits under Section 80C, its guaranteed pension and government backing make it a reliable option compared to other pension schemes like SCSS.
Indian citizens aged 60 years or above can invest in PMVVY.
Yes, PMVVY can be purchased online via LIC’s official website.
PMVVY offers a fixed pension, while SCSS provides higher investment limits and tax benefits.
The policy term is 10 years.
No, PMVVY does not provide tax deductions under Section 80C.
Yes, a loan of up to 75% of the purchase price is available after 3 years.
A surrender value of 98% of the purchase price is paid in case of critical medical emergencies.
The interest rate is fixed annually by the government and ensures stable returns.
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