Big News! Senior Citizens Can Get Rs 18,500 Monthly for 10 Years Through PMVVY

Big Relief under PMVVY: Pradhan Mantri Vaya Vandana Yojana or PMVVY is now available to senior citizens with a big change. It is to be noted that, the Life Insurance Corporation (LIC) is out with the details of the PMVVY (Modified 2020). The scheme was earlier closed on March 31, 2020, was recently extended by the government for another 3 financial years i.e. till March 2023.

One can invest in Pradhan Mantri Vaya Vandana Yojana by approaching any LIC agent or buy it directly from the insurer’s website.

PMVVY Modified 2020 - Latest Rules

The first and biggest change in the new modified version of PMVVY is the reduced pension rates. Now, the Modified PMVVY will carry lesser interest rate on the investment than before. The interest rate will keep varying depending on the financial year (FY) in which the investment is made.

The PMVVY scheme is for 10 years and on investments made in the FY 20-21 till March 31, 2021, the government has announced the interest rate of 7.4% payable monthly or 7.66% annually for the entire duration of ten years. However, for investments made in the next two FY (2021-22) and (2022-23), the government will declare the PMVVY interest rate at the beginning of each financial year.

The annual reset of the assured rate of interest will be effective from 1st April of the FY in line with the revised rate of returns of Senior Citizens Saving Scheme or SCSS. For the Modified PMVVY 2020, the maximum rate of interest is capped at 7.75% at any point.

PMVVY Modified 2020: Features

PMVVY is exclusively available to the ones who are 60 years of age or above. The PMVVY is a pension scheme for senior citizens that come with guaranteed returns on monthly, quarterly, half-yearly or on an annual basis for 10 years time period. The maximum investment that can be made in the scheme is restricted to Rs 15 lakh per senior citizen & the maximum monthly pension is Rs 9,250 per senior citizen. Thus, if both spouses are above age 60, the maximum monthly pension can be Rs 18,500 in the family on an investment of Rs 30 lakh. You can note that the pension in this scheme is not dependant on the age of the investor.

PMVVY Modified 2020: What is the Minimum & Maximum Investment?

PMVVY Modified 2020 - Minimum & Maximum Pension

Adding more to the good news is that the government had recently reduced the interest rate on post office monthly scheme to 6.6%. However, the RBI Taxable bonds & SCSS are available at 7.75% per annum & 7.4% respectively.