"Retirement Planning with LIC Pension Plan"

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Pradhan Mantri Vaya Vandana Yojana

It is very cardinal for the safety and independence of the Senior Citizens to wisely invest their hard earned money in a secured Pension Plan, owing to the presence of a very few initiatives concerning their social security. Pradhan Mantri Vaya Vandana Yojana is one such plan offered by LIC India that was started to ensure a secured income for the Senior Citizens of India. And the exciting news is that this pension scheme has received an extension till March 31, 2023 beyond 31 March 2020. This scheme offers assured pension payout for 10 years keeping in view the welfare of the Senior Citizens. Additionally, there is death benefit for the nominee, which includes the return of the purchase price.

Policy Conditions

  • Minimum age –Maximum age - Years 60 (completed) – Any Age
  • Policy Term – for a period of 10 years
  • Pension Limit (Minimum and maximum limit) –
    • Minimum: 1,000 INR / Month
    • Maximum : 9,250 INR / month (pension not to exceed this limit for each individual Senior Citizen)
  • The maximum amount of the purchase price allowed for each Senior citizen has been limited to 15 Lakhs
  • Payment Module: For the tenure of 10 years, pension would be paid according to the chosen frequency of monthly / quarterly / half-yearly / yearly payment.
  • Loan option would become open after 3 years of policy, which would be 75% of the initial policy purchase price.
  • Premature Exit available wherein the refund shall include 98% of the total purchase price of the policy.
  • Taxes: Taxes applicable for this plan shall be as per the guidance of Indian constitutional Tax Authority, subject to terms and conditions.
  • GST exempted scheme


  • Benefits in case of Death: In case of the death of the pensioner, during the specified term (10 years), the nominee or the beneficiary will get the refund of the annuity Scheme's purchase price.
  • Benefit of Maturity: if the policy holder survives till the completion of the 10 years of the policy duration, he/she will receive the final installment of the pension along with annuity's purchase price.
  • Timely Pension: During the entire term of 10 years, the policyholder shall receive a specified pension payment as arrears, as per the chosen mode.
  • Assured payment @ 7.4% /annum payable monthly.
  • Free Look Period available: In case any policyholder is unhappy with the terms of the policy, the same can be returned to LIC within 30 days (in case of online purchase of the policy) or within 15 days specifying the reasons for return. The refund shall be inclusive of the purchase price, after the deduction of stamp duty as well as the pension paid (in case any).
  • Exclusion (in case of suicide): No Exclusion of any form owing to suicide and complete purchase price payable.

How is PVVY better than FDR?

The pension plans or the bank FD's are all meant to provide security to the Senior Citizens. Various schemes have been introduced to earn regular income from the amount invested. But keeping in mind the need of the senior citizens, who need higher rate of interest, liquidity, and safety; PVVY was introduced and has been further extended till 31 March 2023.

  • The return for PVVY is 7.4%, whereas most banks offer return rate of 6.5% to 7.0% (which is lesser than the govt. pension plan)
  • No additional tax benefits in FDR
  • In case of any premature withdrawal, only 5.8% interest rate can be realized in FDR.
  • PVVY guarantees a fixed amount of pension at regular intervals (as chosen), for the complete tenure of 10 years.

For all the investment related queries, we have experienced professionals who will provide individualized guidance & counseling to suit your after-retirement needs and requirements. Call at 9230091000 to know about PMVVY and other safe investment options for senior citizens. We help senior citizens to buy PMVVY plan in Chandigarh, Mohali, Panchkula, Kharar and Zirakpur.