Here are the top 5 government pension schemes for senior citizens in India.
Atal Pension Yojana (APY):
The Atal Pension Yojana is a pension scheme introduced by the Government of India, aimed at providing a guaranteed minimum pension to senior citizens. The scheme is designed especially for people working in the unorganized sector, such as daily wage workers or small business employees, who might not have access to regular pension plans.
Under this scheme, individuals can receive a fixed monthly pension, which can range from Rs. 1,000 to Rs. 5,000. The exact amount depends on how much the individual contributes to the scheme and their age at the time of joining. The earlier a person starts contributing, the higher the pension amount they will receive when they retire.
Pradhan Mantri Vaya Vandana Yojana (PMVVY):
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme designed specifically for senior citizens, available through the Life Insurance Corporation of India (LIC). It offers several attractive features to ensure financial security in retirement. To be eligible, individuals must be 60 years of age or older. The scheme provides flexibility in the way pension payments are received, which allows beneficiaries to choose between monthly, quarterly, half-yearly, or annual payouts. Additionally, the pensioner can select a policy term of either 10, 15, or 20 years, based on their needs.
Senior Citizens Savings Scheme (SCSS):
The Senior Citizens Savings Scheme (SCSS) is a government-backed savings plan designed especially for senior citizens to provide them with a reliable source of income during their retirement years. This scheme is available to individuals aged 60 and above or to those aged 55 and above if they have retired under the Voluntary Retirement Scheme (VRS). SCSS allows investors to earn quarterly interest payouts, which provides a steady income every three months. One of the most attractive features of SCSS is its high interest rate, which makes it a great option for seniors looking for a safe, low-risk investment with regular income.
National Pension System (NPS):
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme introduced by the government to help individuals build a retirement corpus. Although it is not specifically designed for senior citizens, it is available to all Indian citizens between the ages of 18 and 65. The scheme allows subscribers to contribute regularly towards their NPS accounts during their working years. Subscribers can choose how to allocate their contributions across different asset classes and select their pension fund manager. Additionally, NPS offers tax benefits under Section 80C and Section 80CCD(1B) of the Income Tax Act.
VPBY – Varishtha Pension Bima Yojana:
The Varishtha Pension Bima Yojana (VPBY) is a government-backed pension scheme designed specifically for senior citizens, offering guaranteed returns and financial security in their later years. Also known as LIC VPBY, this scheme is implemented through the Life Insurance Corporation (LIC) and provides an immediate annuity plan. It ensures that individuals receive a regular pension once they make an initial premium payment. After paying the premium, the policyholder is entitled to receive a fixed pension based on guaranteed returns of 8% per annum for the next ten years.
