Under Modi Govt’s PMVVY scheme, senior citizens can earn an annual interest of 7.4% on purchasing the policy with up to Rs 15 lakh.
The last date to purchase LIC PMVVY (Plan No. 856) is 31st March 2023. Unless the Government decides to extend the last date in the upcoming Budget 2023, this assured pension plan will not be available for subscription in the new financial year starting April 1, 2023.
Sold by LIC, PMVVY (Pradhan Mantri Vaya Vandana Yojana) is an assured pension scheme offered by the Government of India to senior citizens aged 60 years. The Central Government led by PM Narendra Modi modified the PMVVY scheme in 2020.
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As per the provisions of the revised PMVVY scheme, senior citizens can currently earn an annual interest of 7.4% on purchasing the policy with up to Rs 15 lakh. This means, if you purchase the PMVVY policy for Rs 15 lakh, it will give you 7.4%, i.e. Rs 1.1 lakh interest income till the end of the policy term of 10 years.
The minimum purchase price for a yearly pension is Rs 1,56,658. That said, let’s have a look at how the returns from the LIC PMVVY scheme work and what are the minimum and maximum purchase prices.
As per the details available on the LIC website, the following are the minimum and maximum pension amounts that can be availed by senior citizens.
Minimum PMVVY Pension
- Rs 1,000 per month
- Rs 3,000 per quarter
- Rs 6,000 per half-year
- Rs 12,000 per year
Maximum PMVVY Pension
- Rs 9,250 per month
- Rs 27,750 per quarter
- Rs 55,500 per half-year
- Rs 1,11,000 per year
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Minimum and maximum purchase price
- For a yearly pension, the minimum purchase price is Rs 156,658 while the maximum purchase price is Rs 14,49,086.
- For a half-yearly pension, the minimum purchase price is Rs 159,574 while the maximum purchase price is Rs 14,76,064.
- For quarterly pension, the minimum purchase price is Rs 161,074 while the maximum purchase price is Rs 14,89,933.
- For a monthly pension, the minimum purchase price is Rs 162,162 while the maximum purchase price is Rs 15,00,000.
Last date to apply for PMVVY Scheme
The last date to apply for the LIC PMVVY scheme is March 31, 2023.
Should you apply?
PMVVY is an excellent scheme for senior citizens who want an assured monthly, quarterly, half-yearly or annual cash flow. The scheme is also providing a decent 7.4% interest, which is higher than several fixed deposit schemes of 10 years. Pension under this scheme typically starts after 1 year, 6 months, 3 months or 1 month from the date of purchase, depending on the mode of pension payment opted by the subscriber. Moreover, the purchase price of the PMVVY plan is returned to the policyholder after the end of the policy term of 10 years along with the last instalment of the pension.
(Disclaimer: The above content is for information purposes only. For selecting the best pension option, senior citizens should consult professional retirement or financial advisors)
