Retirement can be difficult for working citizens financially and mentally. The government has introduced various pension schemes which provide retired or senior citizens with a regular income to cover expenses.

pension schemes by Govt of India

Life after retirement can be challenging since there is no regular income for the individual. Pension schemes were introduced to ensure that all expenses after retirement can be covered. Read on to learn about the best pension scheme for senior citizens introduced by the Government of India!

Also read: Ways to get the most out of your pension contributions.

What is the best govt pension scheme for senior citizens?

The government of India has introduced various pension schemes for senior citizens to ensure a good and stable life even after retirement. These pension schemes are:

  • The Atal Pension Yojana: APY

This pension scheme was introduced in 2015 to secure the future of individuals working in the unorganized sector. The scheme has been subscribed to by more than 70 lakh people across the country. The key features are:
For each contribution by the worker, the government adds 50 per cent of the contribution with a max limit of Rs 1000. The government contributes for 5 years. The pensions to be received lie between Rs 1000 and Rs 5000. 

  • The National Pension Scheme: NPS

The National Pension system was created in 2009 and had more than 1.3 crore subscribers across the country. The scheme provides returns which are inflation-adjusted to the people investing. The scheme requires the subscriber to invest till the age of 60. The average rate of return for this scheme is 9 to 12 per cent.
The maximum withdrawal of 25 per cent can be carried out after 3 years of investment in the scheme.

  • The Pradhan Mantri Vaya Vandana Yojana: PMVVY

The pension scheme only for Senior Citizens was introduced in 2017 offers the investors an interest rate of 8 per cent with a maximum limit of Rs 15 lakhs. The minimum limit for investment is Rs 10,000. 
The tenure of the payment can be chosen by the investor, whereas the pension will be paid for 10 years. 

  • Indira Gandhi National Old Age Pension Scheme: IGNOAPS

The pension scheme began in 2017 for senior citizens, widows and people with disabilities. The pension provides a monthly sum to people below the poverty line who do not have a regular source of income.
The scheme provides a monthly sum of Rs 200 to people 60-79 years of age and Rs 500 to 80+ years of age.

  • Varishtha Pension Bima Yojana: VPBY

This pension scheme was launched for senior citizens in 2003; it has over 3 lakh subscribers. The scheme offers an interest rate of 8 per cent per year for the investment made. The premium paid under this scheme can be used to avail of tax benefits. The investor can get a monthly pay-out, quarterly pay-out, semi-yearly or yearly pay-out.

Also Read: 10 essential government schemes for senior citizens. 

Final Words

Safeguard your future by choosing the best pension schemes the Government of India provides. The senior citizens within the country can decide to invest in these schemes to get good returns and have a secure future