Pradhan Mantri Vaya Vandana Yojana PMVVY Pension Scheme

The government has planned to launch a new scheme with a new pension plan under the budget of 2018-2019 for senior citizens. This new scheme was announced under the name of PM’s Vaja Vandana Yojana Pension Plan (PMVVY). Under the new plan, the government will offer 8 percent to senior citizens for their invested amount.

Objectives of the scheme

  • The government aims to offer pensioners with 8 percent returns on maturity for a period of ten years.
  • The scheme is much better as compared to the MF and FD as here you get a fixed amount as compared to the interest rates that can change over a period of time.
  • To achieve a level where the price of purchase does not change according to changing age.

Benefits of the PMVVY

  • The following given points include the Benefits of the PMVVY pension benefits, Check them as follows:
  • The pensioner would receive the pension at the end of each time period (monthly/quarterly/half-yearly and yearly) chosen during policy purchase.
  • The pension would be transferred to the pensioner’s bank account through NEFT or AEPS (Aadhaar Enabled Payment System).
  • If the pensioner dies during the policy term of 10 years, the purchase price would be refunded to the nominee of the beneficiary.
  • Minimum age of entry in PMVVY is 60 years, there is no maximum age limit.
  • There are a minimum and maximum amount which can be invested under the scheme.
  • Minimum pension under the scheme is INR. 1000 which maximum is INR. 5000 per month.
  • Upon premature exit, 98% of the invested amount would be provided to the policyholder. However, it is allowed only under exceptional circumstances like critical/terminal illness of self or spouse.
  • After completion of 3 years of the policy, the loan facility would be provided to the pensioner under which loan amount would be the maximum 75% of the invested amount.
  • The policy can be purchased by paying a lump sum amount.
  • No medical examination is required to buy the PMVVY policy.

Pension benefits under PMVVY

Mode of PensionMinimum Purchase PriceCorresponding Pension Amount
Yearly1,44,57812,000 per annum
Half-Yearly1,47,6016,000 Half year
Quarterly1,49,0683,000 per Qtr.
Monthly1,50,0001,000 per month
Mode of PensionMaximum Purchase Price (INR.)Corresponding Pension Amount
Yearly7,22,89260,000 per annum
Half-Yearly7,38,00730,000 per half year
Quarterly7,45,34215,000 per Qtr.
Monthly7,50,0005,000 per month

Pension Rates Per Annum

Pension rates payable under different modes of payment (Yearly, Half Yearly, Quarterly, and Monthly) are as under:

Mode of PensionEffective Pension Rate per annum for INR. 1000/- purchase price
Yearly83.00 p.a
Half-Yearly81.30 p.a
Quarterly80.50 p.a
Monthly80.00 p.a

NOTE (the Yojana will be administered by the LIC of India Co.)


The scheme certainly depends on one’s personal point of view to invest or not in the PMVVY pension plan. In General, most people avoid taking the risk. With all the other scheme’s it is certain that the interest rates may vary over a period of time.

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