The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens. It’s designed by the Government of India and run by the Life Insurance Corporation (LIC).
Think of it like this:
It’s a safe government-backed plan that guarantees regular monthly, quarterly, or yearly income for people aged 60 and above.
Key Features of PMVVY
- For Senior Citizens Only: Anyone aged 60 years or more can apply.
- Guaranteed Pension: Fixed pension returns for 10 years.
- Choice of Payment: You can choose to receive pension monthly, quarterly, half-yearly, or yearly.
- Investment Limit: You can invest up to ₹15 lakh per person.
- Interest Rate: The scheme offers a guaranteed return, typically around 7.4% per year, depending on when you invest.
- Maturity Period: The scheme runs for 10 years. At the end, you get back your full investment.
- Early Exit Option: Allowed only for medical emergencies (with 98% refund).
- No Market Risk: Your money and returns are safe and fixed—not affected by the stock market.
Who Can Apply? (Eligibility)
- You must be 60 years old or older
- You must be an Indian citizen
- No upper age limit
- No need for a medical test
Benefits of PMVVY
- Regular Pension Income: Great for retired people who want a fixed monthly income.
- Safe Investment: It’s backed by the Government of India, so it’s very secure.
- Tax-Free Maturity: Your investment amount is returned after 10 years.
- Joint Ownership: You and your spouse can both benefit from the scheme.
- Loan Facility: After 3 years, you can get a loan against your investment (up to 75%).
Simple Example:
Ramesh, aged 65, invests ₹10 lakh in PMVVY.
He chooses monthly pension.
He will get around ₹7,400 every month for 10 years.
After 10 years, he gets back his full ₹10 lakh investment.
Documents Needed
- Aadhaar card
- PAN card
- Bank account details
- Age proof
- Passport-size photo
How to Apply?
- Visit any LIC branch
- Apply online at licindia.in
- Fill the form, submit documents, and make the payment
Things to Remember
- Interest income (pension) is taxable under your regular income
- No tax benefits on the amount you invest (unlike other pension plans)
- Maximum limit of ₹15 lakh is per person
Conclusion
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a smart and safe choice for senior citizens looking for regular income without worrying about market ups and downs. It’s simple, government-backed, and comes with guaranteed returns.
