Know all about PMVVY - Fusion - WerIndia

The Government of India has recently released a new retirement pension plan for all senior citizens, called the Pradhan Mantri Vaya Vandana Yojana (or PMVVY).

This new pension plan will be aiming to provide every senior citizen of India with a regular pension.

The PMVVY will only be offered for a limited time, and the plan will end on the 5th of March in 2018. In its monthly mode, it will guarantee 8% return, and in yearly mode, it will guarantee 8.3% return. With that said, these are several other facts to know about the PMVVY.

One of the more accommodating and convenient advantages of the PMVVY is the range of options for the time period. It can be either monthly, quarterly, half-yearly, or yearly, and chosen at the preference of the customer.

Additionally, one can apply for a loan facility after completing three policy years. The maximum loan amount would be 75% of the invested amount.

Like many other pension schemes, the pension amount does not need to be collected directly. Instead, it is transferred to the bank account of the pensioner.

It can be done through either the NEFT (National Electronic Funds Transfer) or the AEPS (Aadhar Enabled Payment System).

After completing ten policy years, there will be a maturity benefit in which the purchase price will be returned to the pensioner, along with the final pension installment.

If the pensioner dies within the first ten years, then the purchase price will be given out to his or her nominee.

Although there is a minimum age limit of sixty years, there is no maximum age limit for the PMVVY. The minimum pension for the PMVVY is ₹1,000, and the maximum pension for it is ₹5,000.

If there is a premature exit, then 98% of the amount invested will be provided to the policy holder. This is viable under extreme situations, such as a severe illness or injury to the pensioner or the pensioner’s spouse.

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