Different Schemes for senior citizens

January 21, 2020 Finance Talk Valli Sarvani No comments

Government announces various savings and pension schemes for senior citizens. Apart from senior citizens saving scheme (SCSS) that can be read in another article, there are many other schemes for them.

Here is a list of some such schemes for senior citizens:

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is managed by Life Insurance Corporation of India (LIC). The rate of interest is 8 per cent on the deposit. The beneficiary can choose the tenure of payment. One can subscribe to this till 30 March 2020.

A minimum of ₹1,000 can be invested and the maximum amount is capped at ₹15 lakh. The pension or return will be payable for 10 years. If the beneficiary dies during the tenure, the principal amount is paid to his/her nominee. The beneficiary can exit the scheme before the maturity in the event of critical illness of self or spouse. However, 2 per cent will be withheld as penalty.

Varishtha Pension Bima Yojana is another scheme of LIC with an interest rate of 8 per cent for 10 years. There is no need to go through any medical check-ups for this scheme. The scheme has a lock-in-period of 15 years. Early withdrawal option is available in the event of critical illness.

One can cancel the scheme, if he/she is not satisfied with it. Tax exemption will also be available. If you want to earn ₹5,000 per month, you have to pay a single premium of ₹6,66,665 and ₹6,39,610 to get ₹60,000 per annum.

National Old Age Pension Scheme (NOAPS) was introduced by the inistry of Rural Development of India. It provides social assistance benefits to senior citizens, widows, people with disabilities. Beneficiaries will get a monthly pension under this scheme.

The pension amount will be credited to bank account or post office account of a beneficiary. Those who are aged between 60 and 79 years will get a monthly pension of ₹200 and those who are aged above 80 will get₹500.

Rashtriya Vayoshri Yojana (RVY) was introduced by the Ministry of Social Justice & Empowerment of Government of India for senior citizens who are below poverty line. 30 per cent of the beneficiaries are women.

Seniors citizens with various conditions including hearing impairment, low vision, loss of teeth, and locomotor disabilities will be provided with assisted devices. Walkers, wheelchairs, hearing aids, elbow crunches, and artificial dentures are provided under this scheme.

Image Credit: Narendra Modi / CC BY SA 2.0