Investors interested to invest in retirement scheme Pradhan Mantri Vaya Vandana Yojana can do so before the plan is closed for new subscriptions in another few days.
The PMVVY was introduced in 2019 to provide a regular stream of income to senior citizens. Initially the government of India extended the scheme for one year, and thereafter, for a period of another three years till March 31, 2023
Now, the last date to invest in this retirement plan is March 31.
This scheme is offered by LIC and has a tenure of 10 years with a guaranteed monthly income.
The scheme currently offers an assured pension of 7.4 percent payable monthly. This assured rate of pension will be payable for the full policy term of 10 years for policies bought until March 31.
The minimum pension under the PMVVY is ₹1,000 per month, ₹3,000 per quarter, ₹6,000 per half year and ₹12,000 per year.
The maximum pension, at the same time, is ₹9,250 per month, ₹27,750 per quarter, ₹55,000 per half year and ₹1,11,000 per year.
Who can invest?
Anyone above the age of 60 can invest in this scheme while there is no maximum entry age. The policy has a tenure of 10 years from the date of issue.
The total amount for all the policies held under the PMVVY scheme by a senior citizen cannot exceed ₹15 lakh.
How to buy it?
The scheme can be purchased by payment of a lumpsum purchase price. The pensioner has an option to choose either the amount of pension of the purchase price.
The minimum yearly purchase price is ₹1,56,658 and maximum yearly purchase price is ₹14,49,086.
The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment will be through NEFT or Aadhaar Enabled Payment System. The purchase of the policy under this Government subsidised scheme requires unique Aadhaar number validation.
The first instalment of pension will be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e., yearly, half-yearly, quarterly or monthly respectively.