Pension plan grounded despite 7% returns

The national pension scheme, launched by the Centre a year ago, has only 6,000 people enrolled from across the country.
The director of Insurance Academy, Kshitij Patukale, said, “This is because most of the schemes launched by the central government do not reach the people.”

Patukale said the scheme is open to all above 18 years. Under the scheme, one can invest a minimum of Rs100 per month. There is no upper limit.

There is no fixed premium and one can deposit any amount in a financial year. The policy does not lapse if one fails to pay the premium on time. On paying a nominal fine of Rs100, the person can continue paying the premium again.

Vivek Velankar of Sajag Nagrik Manch said, “Students, professionals and homemakers can take part in the scheme.”

One has to pay a premium till the age of 60 years and then the pension would be deposited in the citizen’s account. Unlike other plans, the principal amount collected till 60 is given to the nominee on the death of the account holder, so the pension as well as the principal amounts are paid.

The amount of pension collected depends on three aspects: the age at which the investment begins, premium paid every month or year and the income.

The amount of pension would depend on the amount collected in the account. The current rate of pension is 7%, so if one has Rs10 lakh in his account, the pension would be Rs70,000 per year. The central government will add Rs1,000 every year for three years once the citizen opens the account.

Once you open a pension plan account, you get a Pan Card, permanent retirement account number, using which one can pay the pension plan premium at any branch of 33 nationalised banks across the country.