6 min read
Updated on Feb 26, 2023
One of the major fallouts of demonetization that severely impacted the senior citizen population of our country was the cut in rate of interest on fixed deposits or FDs. As such, the Government of India came up with a pension scheme exclusively for senior citizens that promises a fixed return of 8% interest to them every year for a total of 10 years.
This government scheme has been launched by the name of Senior Citizen Pension Scheme and is an initiative of the Life Insurance Corporation of India or LIC. This retirement scheme allows the elderly the benefit to opt for a regular pension plan on a regular basis, i.e., monthly, quarterly, half-yearly, or annually. All these retirement plans or pension plans are designed for people over 60 years of age.
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|Plan Name||LIC New Jeevan Shanti|
|Eligibility||Min. – 30 years
Max. – 79 years
|Minimum Amount||INR 1.5 lakh|
|Maximum Amount||No Limit|
|Loan Facility||Available after a year|
This is a multiple-investment option plan that only demands a single premium payment. Some of the main benefits of this scheme include:
Eligibility Criteria for LIC New Jeevan Shanti:
The minimum age for entry under the plan is 30 years and the maximum age is 79 years. The minimum amount to be invested under the plan is at least Rs. 1.5 lakh and there is no maximum limit for investment.
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|Plan Name||Pradhan Mantri Atal Pension Yojana|
|Eligibility||Min. – 18 years
Max. – 40 years
|Minimum Pension||INR 1000/month|
|Maximum Pension||INR 5000/month|
|Policy Term||Min. 20 Years|
|Benefits Offered||After 60 Years|
This plan has been specifically designed by the government for the unorganized section of the society, which includes home-based workers, wage laborers, or self-employed people. The plan guarantees financial security to all these people in old age. The key features of the plan include:
Eligibility criteria for Pradhan Mantri Atal Pension Yojana:
The minimum age for entry into the plan is 18 years and the maximum age is 40 years. Persons in this age group can choose to invest in the scheme for at least 20 years, after which they’d be entitled to enjoy its benefits after the age of 60 years (old age).
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|Plan Name||Pradhan Mantri Vaya Vandana Yojana|
|Eligibility||There is no maximum age limit. Anyone over 60 years can invest|
|Minimum amount invested||INR 1.5 lakh|
|Maximum amount invested||INR 15 lakh|
|Minimum pension Offered||INR 1000/month|
|Maximum Pension Offered||INR 10,000/month|
This pension plan was introduced by LIC for the elderly in 2017. This government scheme is specifically meant for those aged over 60 years, guaranteeing them a rate of interest of 8% for a total of 10 years (which amounts to 8.3% per annum). According to this LIC Senior Citizen Pension Scheme 2023, the total amount invested in the plan is called the purchase price. Some of the major benefits of this plan include:
Eligibility criteria for Pradhan Mantri Vaya Vandana Yojana:
There is no maximum age limit for entering this plan. The government allows any person aged over 60 years to invest in the scheme.
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|Plan Name||LIC New Jeevan Nidhi|
|Eligibility||Min – 20 years
Max – 58 years (regular payout)
60 years (single payment)
|Minimum vesting period||55 years|
|Maximum vesting period||65 years|
|Minimum sum assured||INR 1 lakh (regular premium)|
|Maximum sum assured||No limit|
A unique retirement plan that not only assures pension payouts in the old age but also offers the additional benefits of savings to the elderly. Some of the major highlights of the plan are:
Eligibility Criteria for LIC New Jeevan Nidhi:
The minimum age for entering the plan is 20 years and the maximum age is 58 years (in case of regular premium payment) and 60 years (in case of single premium payment).
Also Read: Top 5-Year Duration LIC Plans
|Plan Name||LIC Varishtha Pension Bima Yojana|
|Eligibility||Min – 60 years
No Maximum age limit
|Minimum annuity||INR 6,000|
|Maximum annuity||INR 60,000|
|Assured pension (at regular intervals)||Monthly, Quarterly, Half-yearly or annually|
Yet another government scheme for the elderly that promises assured pension payments at regular intervals – monthly, quarterly, half-yearly, or annually. Some of the main benefits of this scheme are:
Eligibility criteria for LIC Varishtha Pension Bima Yojana:
The minimum age to opt for the plan is at 60 years and there is no maximum limit for entry age. The plan provides a minimum annuity payout of Rs. 6,000 and a maximum annuity payout of Rs. 60,000.
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The government of India secures the financial interest of its senior citizens by way of introducing several pension schemes. The LIC Senior Citizen Scheme India is one such example. Most of these schemes come with the option to choose from monthly, quarterly, half-yearly, and annual pension payouts. The LIC Senior Citizen Monthly Income Scheme, for instance, assures a comfortable monthly income to the elderly in their golden retirement phase. You can choose a plan that suits your requirement best after careful consideration of each of them as detailed in this post.
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Some best LIC policies are:
LIC New Jeevan Shanti
LIC New Jeevan Nidhi
LIC Varishtha Pension Bima Yojana
Below are some best plans for retirement planning:
SBI Life Saral Retirement Saver
ICICI Pru Easy Retirement
Max Life Guaranteed Lifetime Income Plan
Bajaj Allianz LongLife Goal
7.40% per annum
In 2023, the scheme is offering an interest of 7.40% payable every month which is fully taxable.
The interest rate of both PMVVY and Senior Citizens Savings Scheme (SCSS) are close to 8% per annum.
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