LIC Scheme: Pradhan Mantri Vaya Vandana Yojana to close on March 31 for investment, know interest rate, pension benefits

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) pension programme was introduced by the government in 2017 with the aim to provide retirement benefits to senior citizens. A guaranteed pension is available to seniors 60 years of age and older under the LIC-managed programme. However, there is the deadline for investing in this programme is March 31, 2023.

The LIC PMVVY (Plan No. 856) can no longer be purchased after March 31, 2023. Unless the Government extends the deadline in the upcoming Budget 2023.

People who want to benefit from the PMVVY scheme should know the important details -- Any participant in this scheme must be at least 60 years old to enrol. Additionally, there is no upper age limit for entrance. The policy has a ten-year term. You can do this monthly, quarterly, biannually, or annually.

The policy can opt for a price ranging from Rs. 1,56,658 for an Rs. 12,000 annual pension to Rs. 14,49,086 for Rs. 1,11,000 yearly pension.

The PM Vaya Vandana Yojana provides a 7.4% annual interest rate with a monthly payout option.

“For Financial Year 2022-23, the Scheme shall provide an assured pension of 7.40% p.a. payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March 2023,” says LIC on its website.

The differential return is borne by the government of India in this scheme. The differential return, which is paid as a subsidy on an annual basis, is the difference between the return that LIC earns and the promised return.