The Pradhan Mantri Vaya Vandana Yojana (PMVVY) was formally launched on 21 July by Arun Jaitley, the Union Minister for Finance, Defence and Corporate Affairs . However, the scheme has been available for purchase since 4 May 2017. It aims to provide regular pension to senior citizens. We try to find out whether it is a good option to put in money, especially in this falling interest rate scenario.
Who can buy
PMVVY is a pension scheme exclusively for senior citizens—aged 60 years or more. There is no maximum age for entry. The scheme is currently open and those interested can invest in it till 3 May 2018. Senior citizens can purchase it offline as well as online, through Life Insurance Corporation of India (LIC), which has been given the sole rights to operate it. The scheme provides an assured return of 8% to 8.30% per annum, depending on whether you choose to get your pensions on a monthly, quarterly, half-yearly or yearly basis. For the monthly option the return is 8% and it is 8.30% for the annual option.
The minimum purchase price for receiving pensions every month is Rs 1.5 lakh, where a senior citizen will get a pension of Rs1,000 per month.
