Vaya Vandana Yojana : Pension Details

Pradhan Mantri Vaya Vandana Yojana is Pension plan for Senior citizen announced by Government of India. This plan is government subsidised pension scheme which will avail guaranteed 8% return in monthly mode and 8.3% return in yearly mode. This plan plan can be purchased from LIC up to 03-05-2018.

Plan Parameters

Age at Entry 60 Years (Completed)
Maximum Age at Entry No Limit
Policy Term 10 Years (Fixed)
Pension Receiving Mode Monthly, Quarterly, Half Yearly or Yearly

Pension benefit:

  • Pensioner will receive pension amount as per selected mode. Pension will be available on completion of selected mode, for example, in case of monthly mode, pension will be paid on completion of month.

This plan can be purchased on payment of single one time amount, the minimum and maximum limit of one time lump sum amount is given in the following table:

Mode Minimum Maximum
Amount Pension Amount Pension
Yearly 1,44,578 12,000 7,22,892 60,000
Half Yearly 1,47,601 6,000 7,38,007 30,000
Quarterly 1,49,068 3,000 7,45,342 15,000
Monthly 1,50,000 1,000 7,50,000 5,000

Death benefit:

  • Deposited amount will be returned to nominee or legal heirs.

Click here to Download Policy Document:

Maturity Benefit

  • On completion of 10 years, the deposited amount along with last due pension will be returned to policy holder.

Policy Surrender:

  • In extra-ordinary cases like critical medical emergency of policy holder or spouse, the policy can be surrendered before completion of 10 year term. The surrender value will be 98% of purchase price.

Eligibility Conditions and Other Restrictions:

  1. Minimum Entry Age: 60 years (completed)
  2. Maximum Entry Age: No limit
  3. Policy Term : 10 years
  4. Minimum Pension: Rs. 1,000/- per month
    Rs. 3,000/- per quarter
    Rs.6,000/- per half-year
    Rs.12,000/- per year
  5. Maximum Pension: Rs. 5,000/- per month
    Rs. 15,000/- per quarter
    Rs. 30,000/- per half-year
    Rs. 60,000/- per year

Example of Pradhan Mantri Vaya Vandana Yojana (LIC Plan 842):

Let’s take example of PMVVY with following details.

Age (Years) 60 (Completed)
One Time Deposit 7,50,000
Policy Term(Years) 10
Purchase Year 2017
Pension Mode Monthly

As per above example, pension scheme holder requires to deposit on time lump sum amount of 7,50,000 and monthly pension will credit in to his/her account on completion of each month from date of purchase for next 10 years.

On completion of 10 years, 7,00,000 will be returned to policy holder. Following table provides year-wise pension details.

Key Things To Know About Pradhan Mantri Vaya Vandana Yojana Scheme:

  • According to LIC, the PMVVY pension scheme can be purchased offline as well as online from its website (
  • Under the Pradhan Mantri Vaya Vandana Yojana Scheme, the pensioner during the policy term of 10 years will receive pension at the end of each time period chosen (monthly/quarterly/half-yearly and yearly). The pension payment shall be through NEFT transfers (online) or Aadhaar Enabled Payment System, LIC said.
  • If the pensioner survives the policy term of 10 years, purchase price along with final pension installment shall be payable under the PMVVY pension scheme. (The amount invested in the scheme is called the ‘purchase price’.)
  • On death of the pensioner during the policy term of 10 years, the purchase price shall be refunded to beneficiary.
  • The minimum age for entry into the PMVVY pension scheme is 60 years (completed) while there is no maximum age limit.
  • There is a minimum and maximum limit for investment in Pradhan Mantri Vaya Vandana Yojana Scheme. The amount varies according to the pension payment mode chosen. For example, under the yearly pension mode, the minimum amount that has to be invested in the scheme is Rs. 1,44,578 and the maximum at Rs. 7,22,892. In monthly mode, the minimum amount that has to be invested is Rs. 1,50,000 and maximum at Rs. 7,50,000.

LIC said the ceiling of maximum pension is for a family as a whole, which means the total amount of pension under all the policies allowed to a family under this plan shall not exceed the maximum pension limit. The family for this purpose will comprise of pensioner, his/her spouse and dependants.

  • Accordingly, Rs. 1,000 will be the minimum pension amount payable monthly for which Rs. 1,50,000 has to be invested under the Pradhan Mantri Vaya Vandana Yojana Scheme. Similarly, the maximum monthly pension shall be Rs. 5,000 per month for which Rs. 7,50,000 has to be invested. For other modes, see the table below.

Source: Life Insurance Corporation

  • In simple words, for every Rs.1000 invested in Pradhan Mantri Vaya Vandana Yojana Scheme, in yearly pension mode, the person will get Rs. 83 per annum; half-yearly Rs. 81.30; quarterly Rs. 80.50 and monthly Rs. 80.
  • The PMVVY pension scheme allows premature exit during the policy term under exceptional circumstances like the pensioner requiring money for the treatment of any critical/terminal illness of self or spouse, LIC said. The surrender value payable in such cases shall be 98 per cent of the original invested amount. Loan facility is available after completion of three policy years. The maximum loan that can be granted shall be 75 per cent of the invested amount.
  • Manoj Nagpal, CEO of Outlook Asia, says senior citizens should take advantage of PMVVY pension scheme as well as another popular senior citizens scheme called Senior Citizen Savings Scheme (SCSS). “If one has to choose one over the other ,then the PMVVY is better as one has a longer time frame need of 10 years while the SCSS is better for higher liquidity it provides,” he says. Though the interest earned from both the schemes are taxable, effective tax planning and higher tax slabs can greatly reduce the impact of tax for senior citizens, he adds.

Pension Details:

Year Age Deposit Amount Monthly Pension Total Pension in a Year Return of Purchase Price
2017 60 750000 5000 60000 0
2018 61 0 5000 60000 0
2019 62 0 5000 60000 0
2020 63 0 5000 60000 0
2021 64 0 5000 60000 0
2022 65 0 5000 60000 0
2023 66 0 5000 60000 0
2024 67 0 5000 60000 0
2025 68 0 5000 60000 0
2026 69 0 5000 60000 0
2027 70 750000

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