ap7am logo
Logo Bar bseindia nse-india msn yahoo youtube facebook google thehindu bbc ndtv v6 ABN NTv Tv9 etv namasthetelangaana sakshi andhrajyothy eenadu ap7am bhakti espncricinfo wikipedia twitter

Vayo Vandana Yojana is a new, safe pension policy for the elderly

Thu, Oct 12, 2017, 02:23 PM
Related Image

The aged vote for steady and secure income. The Centre has brought in such a pension plan, called 'Pradhanmanthri Vayo Vandana Yojana.' Let us see what experts have to say on its advantages and disadvantages.


Those in an unorganised sector and the self-employed, have limited options when it comes to pension policies. National Postal Services (NPS), unit-based pension schemes and even pension schemes offered by insurance companies are all for those who will retire in future. There is something called annuity, in which income can be earned from the month, immediately after investing. However, the returns on this is less. Among the schemes that assure monthly income at present, only Senior Citizen Savings Scheme assures 8.3 per cent interest. The remaining are below eight per cent rate of interest. At this point, Centre has introduced Vayo Vandana Yojana, that gives eight per cent interest. Life Insurance Corporation (LIC) of India runs the policy.

representational imageAnyone who is past 60 years of age, is eligible to invest in this scheme. There is no maximum age limit. Anyone who has crossed 60 years can invest in this and earn returns. The term is 10 years. Monthly income can be earned at the rate of eight per cent per annum. It is exempted from GST. While it was brought in to effect from May 4th, this year, LIC has already managed to offer 58,000 policies and collected Rs. 2,700 crore as investment. However, official announcement was made recently. Policies can be bought online and offline. There is a chance of joining this policy only up till May 3rd next year. After that, there is no chance of investing in this policy. Pension can be earned monthly, tri-monthly, and once in every six months.

Monthly pension
You must invest Rs. 1,44,578, if you want to earn monthly pension. A maximum of Rs. 7,22,892 can be invested. Then you can earn a minimum of Rs. 1,000 a month or a maximum of Rs. 5,000 a month.

Tri-monthly pension
A minimum of Rs. 1,47,601 or a maximum of Rs. 7,38,007 should be invested. Then the minimum tri-monthly income will be Rs. 3,000 and the maximum will be Rs. 15,000.

Once in six months
A minimum of Rs. 1,49,068 and a maximum of Rs. 7,45,342 should be invested. Then a minimum pension of Rs. 6,000 and a maximum of Rs. 30,000 can be earned, once in six months.

Yearly
representational imageYou can take a policy for Rs. 1.5 lakh minimum and Rs. 7.5 maximum. The returns will be a minimum of Rs. 12,000 and a maximum of Rs. 60,000 pension annually. Simply said, for every Rs. 1,000 investment, Rs. 80 can be earned annually and Rs. 80.50 every month. For once in every month, income will be Rs. 81.30, and Rs. 83 annually.

Some limitations
The maximum limit for pension mentioned here, is for the whole family. Pensioner, his or her spouse, and dependents on the pensioner, together are called family. This restriction has been placed, so as not to open separate accounts in the names of same family members. Pension is credited in the bank account directly. If the policy holder dies before the term ends (within 10 years), the invested amount is given to the nominee or heirs. As the pension is earned as per the conditions, the invested amount only is returned. You have to quote special reasons, if you want to withdraw from the policy in between. Those who are ill and need money for treatment, can withdraw 98 per cent of the investment. After three years of investment, if you need, you can take a loan. The loan amount will be 75 per cent of the investment. Interest of 10 per cent is charged. If you are not happy with the conditions and other aspects of the policy, after taking it, you can return it. Neither the invested amount or the interest earned are taxable.

Is it useful?
representational imageEight per cent interest rate, along with returns, is not a bad idea. Other than this, only in Senior Citizen Savings Scheme, you have 8.3 per cent interest. All the remaining schemes have less interest rate. The maximum interest is Rs. 5,000. You cannot invest more than Rs. 7.5 lakh. This amount is not enough for a family. Moreover, this amount will not suffice for all the needs of a retired person. Instead, it is better to invest in debt mutual funds, and earn returns regularly, according to financial planner, Suresh Sadagopan. The scheme will be useful only to those whose monthly needs are limited.
X

Feedback Form

Your IP address:
2 months ago
10 months ago
1 year ago
Jagapathi Babu made sensational comments, to launch new po..
Jagapathi Babu made sensational comments, to launch new political party soon?
Chiranjeevi giving life to Dasari Narayana Rao's Son..
Chiranjeevi giving life to Dasari Narayana Rao's Son
New Twist in TRS Leader Srinivas Reddy Arrest : Secound Wi..
New Twist in TRS Leader Srinivas Reddy Arrest : Secound Wife Face To Face
Akkineni Nagarjuna & RGV Speech At RGV-Nag New Movie L..
Akkineni Nagarjuna & RGV Speech At RGV-Nag New Movie Launch
Akkineni Nagarjuna And RGV New Movie Launch..
Akkineni Nagarjuna And RGV New Movie Launch
Police Massive Lathi- charge on 50 People in West Godavari..
Police Massive Lathi- charge on 50 People in West Godavari
Pawan Kalyan Receives Grand Welcome At Shamshabad Airport..
Pawan Kalyan Receives Grand Welcome At Shamshabad Airport
Viral video: Aruna Reddy, A Spoof On Arjun Reddy creates c..
Viral video: Aruna Reddy, A Spoof On Arjun Reddy creates controversy
Dil Raju, VV Vinayak, Sai Dharam Tej, Mehreen Speeches @ J..
Dil Raju, VV Vinayak, Sai Dharam Tej, Mehreen Speeches @ Jawaan Pre Release Event
Talasani on Revanth Reddy, KTR, Nandi Awards & Drugs c..
Talasani on Revanth Reddy, KTR, Nandi Awards & Drugs case- Murali Krishna's Encounter
Deepika Padukone tries Telugu @ Social Media Awards 2017 i..
Deepika Padukone tries Telugu @ Social Media Awards 2017 in Vijayawada-Exclusive
Social Media Awards 2017 in Vijayawada- Deepika Padukone- ..
Social Media Awards 2017 in Vijayawada- Deepika Padukone- Anchor Anasuya- LIVE
Brutal husband, TRS leader, Srinivas Reddy arrested..
Brutal husband, TRS leader, Srinivas Reddy arrested
Revanth Reddy Follows CM KCR's Strategy!..
Revanth Reddy Follows CM KCR's Strategy!
Cong. leader Jeevan Reddy responds on Revanth Reddy cash-f..
Cong. leader Jeevan Reddy responds on Revanth Reddy cash-for-vote case; Weekend Interview
Jabardasth Kiraak RP slams Kathi Mahesh; speaks high words..
Jabardasth Kiraak RP slams Kathi Mahesh; speaks high words about Pawan Kalyan
YS Jagan slams & satires on Chandrababu's comments on ..
YS Jagan slams & satires on Chandrababu's comments on 2022, 2029, 2050 vision
Janasena Chief Pawan Kalyan Top Priorities as a CM : TAL M..
Janasena Chief Pawan Kalyan Top Priorities as a CM : TAL Meet in London
Power Star Pawan Kalyan Seeks Apology for Supporting TDP G..
Power Star Pawan Kalyan Seeks Apology for Supporting TDP Govt : TAL Meet in London
Janasena Chief Pawan Kalyan Strong Warning : TAL Meet at L..
Janasena Chief Pawan Kalyan Strong Warning : TAL Meet at London