Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme launched by the Government of India in May 2017, which is aimed at providing financial security and stability to senior citizens in the country. The scheme offers a guaranteed return of 7.4% per annum and is available to all citizens aged 60 years and above.

The PMVVY is administered by the Life Insurance Corporation of India (LIC) and is available for a period of ten years. The scheme can be purchased by paying a lump sum amount, which can range from a minimum of Rs. 1.5 lakh to a maximum of Rs. 15 lakh. The pension payouts under the scheme can be received on a monthly, quarterly, half-yearly, or yearly basis, as per the choice of the pensioner.

The PMVVY is an attractive option for senior citizens as it offers a high guaranteed return, which is significantly higher than the prevailing interest rates on fixed deposits and other similar investment options. Moreover, the scheme offers a range of benefits to pensioners, such as the option to avail loans against the policy, surrender the policy in case of critical illness, and nominate a beneficiary to receive the corpus in case of the pensioner's demise.

The scheme also offers a unique feature of providing a death benefit to the nominee, which is equal to the purchase price of the policy. This ensures that the pensioner's family members receive financial support even after his/her demise. Additionally, the scheme offers tax benefits to pensioners under Section 80C of the Income Tax Act, 1961, which allows them to claim deductions up to a maximum of Rs. 1.5 lakh per annum.

The PMVVY has been well received by senior citizens in India, as it provides them with a reliable and secure source of income during their retirement years. The scheme has been particularly beneficial for those who do not have any pension benefits or social security schemes to rely on. Moreover, the scheme has helped to promote financial inclusion among senior citizens, by encouraging them to invest their savings in a safe and regulated instrument.

In conclusion, the Pradhan Mantri Vaya Vandana Yojana is an excellent pension scheme that provides financial security and stability to senior citizens in India. The scheme offers a high guaranteed return, a range of benefits, and tax benefits, making it an attractive investment option for pensioners. The scheme has played a significant role in promoting financial inclusion and social security for senior citizens in the country.