[Special Thanks to our honr. Prime Minister Mr. Narendra Modi]
Earning After 60:
There
is a general notion among people, which specifically highlights the start of “zero
or negligible income” period after one attains the age of 60 years. The age of 60
years is a universally accepted retirement age, after attaining which, a
particular individual is bestowed with the title of being a senior citizen.
Since, these individuals are now out of their jobs, the monthly income that
they had been earning is now totally withdrawn. If the person is lucky, then a
certain sum would continue to get credited to that person’s bank account every
month in the name of pension. But is every retired senior citizen equally
lucky? If you tend to fall in the less lucky category, then fret not. The
Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme is here to rescue you.
What is PMVVY?
Launched
in May 2017, PMVVY is readily available with LIC. Even though LIC has had
floated multiple pension plans in the past, this is very different from its
other counterparts. The major difference is that most of the pension plans introduced
in the past are designed in such a fashion that they
offer returns on the basis of the age of the person, who has opted for the said
plan. In this case, age has absolutely nothing to do with the pension the
investor earns.
For the Starters:
Entry Age: Any individual, who has
attained the age of 60 can go and opt for PMVVY scheme. Even though there is a
pre-set age bar to invest in this plan, there is no maximum level of entry age
to this scheme. Any and every individual aged 60 or more can avail this pension
scheme.
Term & Frequency: The said pension scheme
comes complete with a term of 10 years. If you sign up to this plan, then you
will be paid pension for all these consecutive 10 years. There is no
restriction on the frequency of receiving pension. You can choose a period of
your choice, the available alternatives being monthly, quarterly, half-yearly
and annual options.
Pension Amount: This pension scheme
includes minimum and maximum pension amounts. On the lower side, one can enjoy
pension of Rs 1,000/- per month, Rs 3,000/- per quarter, Rs 6,000/- every half
year and of course Rs 12,000/- annually. Alternatively, on the higher side you
attract a pension of Rs 10,000/- per month, Rs 30,000/- per quarter, Rs
60,000/- every half year and of course Rs 1,20,000/- annually.
Rate of Interest: The ROI for the PMVVY scheme
stands at a fixed rate of 8%. Monthly compounding is used in order to derive
the pension levels. These calculations are so simplified that even a layman can
calculate the minimum and maximum pension levels.
Limit Cut-Offs: Every senior citizen can
invest up to a maximum ceiling of 15 lakh in the said pension plan. So if you
are a senior citizen and so is your spouse, then collectively you both enjoy an
undisputed ceiling of Rs 30 lakh.
Loan Facility: This plan provides you
with an additional advantage of availing loan up to 75% of the purchase price.
The said loan can be availed after a period of 3 years.
Closure Date: PMVVY plan is open for
senior citizens up to March 31, 2020. There are bright chances of the said plan
being re-launched in its second season with a somewhat higher interest rate.
Suicide no Bar: Most of the investment
plans, bar the nominee from enjoying the policy holder’s death benefits if the
death is caused due to suicide. However, in case of PMVVY, even if the senior
citizen commits suicide, the nominee will be entitled to receive the entire
returns.
Premature Exit: Every PMVVY holder enjoys
the benefit of making a premature exit from the said plan. However, one
attracts a penalty of 2% on the purchase price for premature withdrawal. The
balance of 98% is handed over to the policy holder. In case of terminal or
critical illness being detected in the policy holder or his or her spouse, the
above penalty is fully waived.
Tax Slabs: By investing in the PMVVY
scheme, one does not particularly enjoy any sort of tax benefit. However, if
the said amount is drawn at maturity or on the death of the policy holder, it
attracts no taxes as well.
As
a senior citizen if you are interested to invest in a lucrative investment
plan, then make it a point to begin your investments only with PMVVY.
To know more about your personal financial status, visit www.findvise.com or download the App now.
Comments
Post a Comment