The Social Security Pension Scheme in India is a government initiative aimed at providing financial assistance to the elderly, disabled, and widowed individuals. It ensures a stable income for those who can no longer work due to age, disability, or other qualifying conditions, thereby promoting financial independence and well-being in later life.
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A Social Security Pension Scheme, also known as Samajik Suraksha Yojana in India, is a state-sponsored initiative aimed at providing financial support to vulnerable groups such as the elderly, disabled, and widows. This pension plan is essential for ensuring social security and improving the quality of life for marginalized sections of society.
Eligibility Criteria: To qualify for this pension plan, you must meet specific criteria, including age, income level, employment history, or disability status.
Contributions: You make regular contributions from your earnings or through taxes to fund the pension system, where employers are often required to contribute on behalf of their employees.
Payout Structure: Pension benefits are calculated and distributed based on factors such as earnings history, length of participation, and retirement age.
Retirement Age: There is a designated age at which you can start receiving pension benefits, which varies by state and scheme.
Indexation: Pension benefits may undergo periodic adjustments to account for inflation or changes in the cost of living, ensuring their purchasing power remains stable.
Survivor Benefits: Many best investment plans for retirement offer financial support to the spouse or dependents of a deceased participant.
Disability Benefits: Some schemes provide financial support to individuals unable to work due to disability until they reach retirement age.
Portability: In some cases, you may transfer pension benefits between retirement plans or countries if you move or change jobs.
Administration: Government agencies or private pension funds typically administer the scheme, handling contributions, investments, and benefit distributions.
Here are some of the prominent Samajik Suraksha Pension Yojana in India:
Scheme | State/Central | Eligibility | Benefits |
Indira Gandhi National Old Age Pension Scheme (IGNOAPS) | Central with State Contribution | Individuals aged 60 years and above, BPL households | â‚ą200/month (60-79 years), â‚ą500/month (80+ years) |
Indira Gandhi National Widow Pension Scheme (IGNWPS) | Central with State Contribution | Widows aged 40-59 years, BPL households | â‚ą300/month |
Indira Gandhi National Disability Pension Scheme (IGNDPS) | Central with State Contribution | Disabled persons aged 18-59 years, >80% disability, BPL households | â‚ą300/month |
Employees' Provident Fund Scheme (EPFO) | Central | Salaried individuals in eligible organizations | Employer and employee each contribute 12% of the employee's salary |
National Pension System (NPS Scheme)* | Central | Indian citizens (resident or non-resident) and Overseas Citizens of India (OCIs) aged 18 - 70 years | Withdraw up to 60% of your savings as cash. 40% corpus to buy an annuity for a guaranteed monthly pension. |
Atal Pension Yojana (APY) | Central | 60+ years age | Rs. 1,000 - Rs. 5,000 per month |
Public Provident Fund (PPF)* | Central | Any Indian resident citizen | 7.1% interest p.a. for Q1 2024-25 |
Pradhan Mantri Vaya Vandana Yojana (PMVVY) | Central | Individuals above 60 years | Guaranteed return on investment for 10 years. |
Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) | Central | Unorganized workers in the age group of 18 to 40 years | Rs. 3000/ month |
*You can use an NPS Calculator and PPF Calculator to estimate your maturity returns from the investments in these best pension plans.
Some common Social Security Pension Schemes implemented by different states in India are listed below:
Scheme | Target Beneficiaries | Eligibility Criteria | Benefit Amount | Application Process |
Lakshmi Bai Samajik Suraksha Pension Yojana Bihar | Widows | Resident of Bihar, Widow, Below the Poverty Line, income below Rs. 60,000 per annum, age above 60 years | ₹300 per month | Apply through the official online Social Security Pension portal |
Social Security Pension Scheme Rajasthan | Elderly, Widows, Disabled | Resident of Rajasthan, Age criteria (different for elderly, widows, disabled), BPL status for some categories | Varies: ₹1150-₹1500 per month based on category | Apply through e-Mitra centres, mobile apps, or local bodies |
Samagr Samajik Suraksha Pension Yojana - MP | Elderly, Widows, Disabled, Destitute | Resident of Madhya Pradesh, Age and income criteria (different for categories) | â‚ą600 per month | Apply through the local Panchayat in your area |
Chhattisgarh Social Security Pension Scheme | Disabled, Dwarf Persons | Resident of Chhattisgarh, Age and income criteria (varies by category) | â‚ą500 per month | Apply through local Panchayat or urban bodies |
Generally, the state and central government consider the following eligibility requirements to join the various social security pension plans:
Age: Usually senior citizens aged 60 years and above.
Income: Many schemes target individuals belonging to BPL or low-income households.
Residency: Applicants must be residents of the respective state.
Other Conditions: Specific criteria based on the scheme, such as no other pension benefits from the government.
The documents required for the Social Security Pension Scheme in India can vary depending on the specific scheme and the state in which you live. However, some of the most commonly required documents include:
Proof of Age
Income Certificate
BPL Card
Disability Certificate (if applicable)
Death Certificate of the Spouse (for widow pension)
Proof of Residence
Copy of Aadhaar Card
Copy of Bank Passbook
Obtain Application Form: Visit the local Social Welfare Department office, the District Collector’s office, or the official website of the respective central department or state government to get the application form.
Fill Out the Application: Complete the application form with accurate details.
Attach Documents: Attach photocopies of all required documents to the application form.
Submit the Application: Submit the filled application form and attached documents to the local Social Welfare Department office or the designated authority.
Verification Process: The concerned authorities will verify the details provided in the application.
Approval and Disbursement: Upon successful verification, the pension will be sanctioned and disbursed directly to the applicant's bank account.
Follow-Up: Regularly follow up with the concerned department to check the status of your application if there are delays.
Social Security Pension Schemes in India offer several benefits to eligible individuals, particularly those belonging to vulnerable sections of society. Some of the key advantages are listed below:
Financial Security in Old Age: Social security pension schemes ensure a steady income for retirees, offering basic financial stability during their elderly years.
Independence from Children: With pensions, retirees rely less on their children for financial assistance, promoting autonomy and dignity.
Social Safety Net: These investment options serve as a safety net for those who could not save enough during their working years, reducing poverty among the elderly.
Encouraged Savings: Participating in contributory schemes instills a savings habit, as both employees and employers contribute a portion of their income.
Economic Stability: By providing retirees with a reliable income, these schemes enhance purchasing power and contribute to overall economic stability.
The Social Security Pension Scheme in India serves as a vital safety net for elderly and economically vulnerable citizens, providing them with financial assistance and security in their twilight years. While the scheme has made significant strides in reaching beneficiaries, there remains a need for continued government support and enhancements to ensure broader coverage and adequacy of benefits, thus ensuring a dignified and secure retirement for all citizens.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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