Post demonetization the banks are cutting down the interest rates on fixed deposits. Hence, to safeguard the interest of senior citizens from falling interest rates, the government of India has initiated a senior citizen pension scheme with an annual return of 8% for 10 years.
The senior citizen pension scheme is launched by the Life Insurance Corporation of India, under which the subscriber has an option to choose for a pension on an annually, half-yearly, quarterly, and monthly basis.
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This scheme is designated specifically for individuals above the age of 60 and it is an effective long-term saving option that has an exquisite feature and offers unmatched security.
The senior citizen saving scheme offers a handful of annuity plans to secure the future of the senior citizens of the country. Well! If you have been thinking that what the scheme has in its kitty, then just relax because we are just going to unfold all the benefits offered by various schemes under (SCPS). The plans offered under the Senior Citizen Pension Scheme are:
Pradhan Mantri Vaya Vandana Yojana is a non-participating, non-linked pension scheme that is launched by the Government of India. The modified scheme includes pension rates and an extended period of sale of this policy for an extended time of 3 years from the financial year 2020-21 up till 31st March 2023.
Pradhan Mantri Vaya Vandana Yojana offers a loan and the interest on it would be recovered from the pension sum, payable under the plan. The applicable rate of interest should be based on options that are approved by the IRDAI.
For the initial 10 years of the policy term, Senior citizens can receive a minimum pension of Rs. 1,000 per month and a maximum pension of Rs. 10,000 per month based on the invested amount.
Beneath we have given some details of the policy:
Here you can see the rates of minimum and the maximum purchase price of different modes of pension plan in a tabular form.
Mode of Pension |
Minimum Purchase Price |
Maximum Purchase Price |
Yearly |
Rs.1,56,658/- |
Rs.14,49,086/- |
Half-yearly |
Rs.1,59,574/- |
Rs.14,76,064/- |
Quarterly |
Rs.1,61,074/- |
Rs.14,89,933/- |
Monthly |
Rs.1,62,162/- |
Rs.15,00,000/ |
|
Minimum |
Maximum |
Yearly |
Rs.12,000 |
Rs.1,11,000 |
Half-yearly |
Rs.6,000 |
Rs.55,500 |
Quarterly |
Rs.3,000 |
Rs.27,750 |
Monthly |
Rs.1,000 |
Rs.9,250 |
This is a simplified scheme that provides an assured pension to the pensioner so that they can enjoy the golden days of retrial without any stress.
This scheme was introduced by the government under the Union Budget 2014-15. Under LIC Varishtha Pension Bima Yojana the subscribers can opt for a pension annually, half-yearly, quarterly, or monthly mode. A regular assured income is paid to the pensioner at the end of each period on a yearly, half-yearly, quarterly, and monthly basis.
Some of the benefits offered by the policy are as follows:
|
Minimum |
Maximum |
Yearly |
Rs.63,960 |
Rs.6,39,610 |
Half-yearly |
Rs.65,430 |
Rs.6,54,275 |
Quarterly |
Rs.66,170 |
Rs.6,61, 690 |
Monthly |
Rs.66,665 |
Rs.6,66,665 |
This is a simplified scheme that provides an assured pension to the pensioner so that they can enjoy the golden days of retrial without any stress.
This scheme was launched by the government in the year 2015. This scheme runs to secure the future of senior citizens after retirement.
Under LIC Pradhan Mantri Pension Yojana the subscribers are paid a fixed monthly pension is payable.
Minimum Monthly Pension: Rs. 1,000/-
Maximum Monthly Pension: Rs. 5,000/-
The spouse of the insured person will be entitled to receive the same amount of pension till they are alive.
Pradhan Mantri Pension Yojana was specifically launched keeping the weaker section of the society in mind therefore it offers very affordable premium rates as compared to the other pension plan. The subscribers can choose to get a monthly pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, and Rs. 5,000 according to one’s own choice.
Moreover, to encourage the lower-income section of the society to join the scheme the government has provided an option of bonus under which a sum towards the pension account will be contributed for 5 years.
Senior citizen saving scheme is one of the most common products for people over 60 years of age. The Senior Citizen Saving Scheme offers the highest safety, regular income, and tax saving under the same umbrella. Individuals can open the Senior Citizen Saving Scheme by investing a minimum of Rs. 1,000 to Rs.15 lakhs in a single or lump-sum installment.
With a simple documentation process, the Senior Citizen saving scheme provides an interest rate of 7.4% per annum and also provides tax benefits up to the limit of 1.5 lakh under Section 80C of the Income Tax Act. The senior citizen saving scheme also offers the option of premature withdrawal, however, the insured person will have to pay the premature withdrawal charges.
Pradhan Mantri Bima Yojana is one of the 3 social security schemes that is announced by the government in the 2015 budget. There are three plans offered under Pradhan Mantri Bima Yojana:
The eligibility criteria of the policy range from 18 years to 70 years and provide life coverage up to Rs.2 lakhs. All the policies offered under Pradhan Mantri Bima Yojana cover the different spectrum of life coverage and secure the life of the senior citizen after retirement.
LIC senior citizen pension scheme simply includes all the benefits that are required to secure the financial future of an individual after retirement. The different plans offered under the LIC Senior Citizen Pension Scheme precisely work in the favor of pensioners and efficiently provides them long-term saving options.
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