Aging is a given. The most significant shift it brings about is “retirement.” After retiring, your income can be nothing or very low. Paying for medical expenditures and other necessities at such times might be difficult.
To give elderly residents stability and security after retirement, the Indian government has introduced several unique pension plans. Let’s examine some of the top pension plans for seniors.
National Pension System ( NPS)
The PFRDA (Pension Fund Regulatory and Development Authority) is in charge of the NPS, which was formed specifically to provide older people with financial security after retirement. The program enables participants to contribute regularly to their NPS accounts while they are still working, enabling them to save money for retirement.
It is the most well-liked of the government’s retirement plans for elderly persons. It is a pension scheme that places a strong emphasis on voluntary payments and provides members with several benefits. NPS was once only available to individuals working for the government when it was originally launched in 2004. In 2009, it was broadened to cover all sectors.
Pradhan Mantri Vaya Vandana Yojana -PMVVY
Through offers from investment returns, this government-sponsored pension program for seniors gives participants post-retirement financial freedom and social security. The policy, which offers guaranteed profits for 10 years, is only available from the biggest insurer in India, the LIC (Life Insurance Corporation of India).
The participants of the PMVVY plan may expect annual returns on their contributions of 8%. The beneficiary may determine the length of the payment period; refunds or pensions are paid for 10 years. The PMVVY pension plan allows individuals to invest between Rs. 100 and Rs. 15 lakhs. The principal sum is credited to the nominee’s account if the person passes away before the program’s completion. Only in the case of a life-threatening disease can investors in PMVVY withdraw from the program early. There will be a 2% fine imposed in certain circumstances.
Old-Age Pension Plan of Indira Gandhi ( IGNOAS)
The Indian government’s pension program for senior residents is essential in ensuring the elderly’s financial security. One such pension program in India is the IGNOAPS. It was launched by the Ministry of Rural Development in 2007 and is frequently referred to as NSAP (National Social Assistance Programme). The main goal of this program is to provide social safety by giving pensions to its recipients, who include elderly people, widows, and people with disabilities.
This pension program for the elderly gives them a monthly payment to help with their old-age expenditures. It is a non-contribution government pension scheme, therefore the beneficiary is not required to make any contributions to get the pension. A monthly pension of Rs. 200 is due to recipients between the ages of 60 and 79, while a pension of Rs. 500 is due to beneficiaries above the age of 80. The beneficiary’s bank or post office account receives the pension payment directly.
Atal Pension Yojana ( APY)
A minimal monthly contribution is required to participate in this government-sponsored pension program, which encourages employees and labourers to save willingly for their retirement. APY is a social security program that enables unorganized sector workers to guarantee their future by making tiny contributions during their working years. The central government adds an extra 50% of the entire contribution, or Rs. 1000 annually, for each contribution made by the subscribers. For five years, the contribution is made to all APY subscribers’ accounts. The nominee of the plan is qualified to receive the accumulated amount in the account or the pension money in the tragic event of the subscriber’s passing.
Varishtha Pension Bima Yojana ( VPBY)
A government pension program called Varishtha Pension Bima Yojana provides older persons with assured returns and economic stability. The program provides older participants with quick annuity options as a kind of annuity payout. The VPBY, sometimes referred to as LIC VPBY, is provided by LIC, and the customer is obliged to pay the premium of their choice at the start of the policy. In comparison to other senior citizen pension plans, it delivers an assured pension with guaranteed returns at an 8% interest rate annually.
Individuals get a 15-day free-look period under the program after obtaining their policy details. This implies that the member can end the insurance without paying any fees if they so want. After three years from the policy’s purchase, individuals may apply for a loan against their VPBY insurance. Individuals are permitted to borrow up to 75% of the policy’s value.
Rashtriya Vayoshri Yojana ( RVY)
A program aimed at giving physical aids and assistive technology to senior individuals who fall under the BPL category. This is a Central Sector Scheme that the Central Government has completely supported. The “Senior Citizens’ Welfare Fund” will be used to cover the costs associated with putting the plan into action. Artificial Limbs Manufacturing Corporation (ALIMCO), a PSU under the Ministry of Social Justice and Empowerment, would serve as the Scheme’s sole implementing agency.
Only older residents in the country would receive physical help under the plan. This means that those over 60 will receive free physical and assisted living support that is necessary for their sustainability.
The primary requirements for older adults to get the full benefits of the Rashtriya Vayoshri Yojana (RVY) program are that they are members of a BPL household and possess a current BPL card issued by the appropriate government.