6 min read
Updated on Sep 19, 2023
There are numerous private as well as government pension plans offering annuity options for senior citizens that we are discussing in this post. Let’s take a look.
While considering the best pension scheme for senior citizens, the choice would depend on various factors such as amount to be invested, risk tolerance, your particular need etc. Below are some options of pension plans that can be considered for senior citizens.
The below table shows some of the popular government pension schemes for senior citizens:
|Pension Scheme||Age of Entry||Age of Maturity||Policy Term||Tax Benefits|
|National Pension Scheme (NPS)||18 – 70 years||Min. 60 years||Min. 3 years||Available|
|Senior Citizens Savings Schemes (SCSS)||50 to 60 years||Min 65 years||Min. 5 years||Available|
|Pradhan Mantri Vaya Vandana Yojana (PMVVY)||Min. 60 years||70 years and above||10 years||GST exemption|
|Atal Pension Yojana (APY)||18 – 40 years||60 years||Min. 20 years||Available|
|Employment Provident Fund (EPF)||18 years and above||58 years||Min. 50 years||Available (with certain restrictions)|
|Varishtha Pension Bima Yojana (VPBY)||Min. 60 years and above||75 years||Min. 15 years||Available|
|Indira Gandhi National Old Age Pension Scheme (IGNOAPS)||NA||60 years||NA||NA|
Features of NPS:
Also Know: National Pension Scheme
Features of APY:
Also Know: Atal Pension Yojana (APY)
Features of SCSS:
Know More: Senior Citizens Savings Scheme
Features of EPS:
Read More: Employee Pension Scheme
Features of PMVVY:
The table below shows some best annuity pension plans by different insurers:
|Plan Name||Entry Age||Maturity Age||Policy Term||Premium Payment Term||Tax Benefits|
|SBI Saral Life Retirement Saver||18 to 65 years||40 to 70 years||40 years||Regular or lump sum pay option||Tax exemption available|
|Max Life Forever Young Pension Plan||30 to 65 years||NA||20 years||NA||Tax exemption available|
|ABSLI Guaranteed Annuity Plus||45 to 90 years||46 to 90 years||Whole life||Single and limited pay (5,10 years)||Tax exemption available|
|HDFC Life Pension Guaranteed Plan||30 to 85 years||NA||NA||Single pay||Tax exemption available|
|IndiaFirst Life Guaranteed Annuity Plan||40 to 80 years||NA||NA||Single pay||Tax exemption available|
|Tata AIA Life Insurance Guaranteed Monthly Income Plan||6 to 66 years||65 to 68 years||5/8/12 years||5/8/12 years||Tax exemption available|
|ICICI Pru Guaranteed Pension Plan||30 to 100 years||31 years||NA||Single pay||Tax exemption available|
Features of SBI Life Saral Retirement Saver:
Features of HDFC Life Pension Guaranteed Plan:
Features of Max Life Forever Young Pension Plan:
Features of Tata AIA Life Insurance Guaranteed Monthly Income Plan:
Features of IndiaFirst Life Guaranteed Annuity Plan:
To Sum Up
The increase in the population of senior citizens in India makes it important for people to take a holistic approach to secure their financial life after retirement with senior citizen pension schemes. There are several good pension plans offered by both government and private insurance companies to fulfil the needs of the senior citizens. Further, the government of India offer some free pension for senior citizens in India, especially for the poor and economically deprived old people, which can be availed by the needy.
It is necessary for every individual to subscribe to at least one pension plan to make sure that the flow of money keep coming after their retirement.
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Yes, there are several pension plans for senior citizens offered by the government of India as mentioned below:
1. National Pension Scheme (NPS)
2. Atal Pension Yojana (APY)
3. Senior Citizens Savings Scheme (SCSS)
4. Employees Provident Fund (EPF)
5. PM Vaya Vandana Yojana (PMVVY)
6. Indira Gandhi National Old Age Pension Scheme (IGNOAPS)
7. Varishtha Pension Bima Yojana (VPBY)
The PMVVY or the Pradhan Mantri Vaya Vandana Yojana is the new pension scheme introduced on 4th May 2017 by the government for senior citizens in India. The scheme was extended till 31st March 2023 for people above 60 years.
Atal Pension Yojana (APY) is one of the best government schemes for people in the unorganized sector. Under this plan, the beneficiary as well as the Government of India pay a share of the premium. NPS and IGNOAPS are other such good pension plans offered by the government.
Here are the necessary documents to apply for a pension plan:
# Birth certificate
# Bank account details
# Papers of ITR
# ID proof
# KYC documents
Yes, a pension scheme for senior citizens is better than savings. That is because pension plans allow financial stability for old age. Savings plans offer low returns as compared to pension plans, which help in building a corpus with long-term investment.
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