Old age brings in a lot of new changes, one of them is retirement. After a certain age, a few tasks that seemed easy a couple of years ago starts becoming a burden. During such times when it becomes impossible to earn a salary on a regular basis, pension schemes act as a saviour.
One of the main reasons why retirement can be worry-some is financial instability. People who have spent all their lives earning money, often find the thought of retirement a little uncomfortable. Keeping these factors in mind, the government has launched various schemes to ensure financial stability and security after retirement. Pension schemes are specially designed to provide certain financial coverage after retirement and to reinforce economic development in the nation.
Let’s have a look at some of the best pension schemes for senior citizens:
National Pension Scheme (NPS)
The NPS scheme was launched in the year 2004 by Pension Fund Regulatory and Development Authority of India (PFRDA). This government pension scheme is designed to specifically provide financial security to senior citizens, post-retirement. This scheme allows the subscribers to make a regular contribution to their account while they are working and can avail the benefits of the regular annuity after their retirement. The subscribers can also make a partial withdrawal from the national pension system account in case of an emergency.
The national pension scheme is available for all employees including the public sector, private sector, and even the unorganized sector except those who work in the Armed Forces. The NPS scheme allows its subscribers to make a minimum contribution of Rs. 6000 in a financial year. The amount can be paid as a lump-sum or as a monthly instalment of Rs 500, whatever is more convenient for the subscriber.
Benefits of National Pension Scheme (NPS):
Atal Pension Yojana (APY)
One of the many pension schemes by the government is the Atal Pension Yojana. This government pension scheme aims to provide pension benefits with a minimum contribution per month. The Atal pension scheme is mainly targeted to the unorganised sector and addresses the longevity risks amongst the workers of this sector. The APY scheme encourages the workers to voluntarily save for their retirement by giving minimum contribution on a monthly basis.
Benefits of Atal Pension Scheme:
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
The Pradhan Mantri Vaya Vandana Yojana provides social security and financial independence after retirement by offering an assured rate of return on the investments. This pension scheme is only offered by the Life Insurance Corporation of India (LIC) and provides assured returns for 10 years. According to the 2018-19 budget, the government increased the maximum purchase price to Rs. 15 lakhs.
Benefits of Pradhan Mantri Vaya Vandana Yojana:
Read More: Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Indira Gandhi National Old Age Pension Scheme (IGNOAPS)
The government pension schemes for senior citizens play a vital role in providing financial security amongst the elderly while also initiating economic development in certain crucial areas of society. Indira Gandhi National Old Age Pension Scheme is one such pension plans in India. The scheme was introduced by the Ministry of Rural Development of India in 2007 and is popularly known as the National Social Assistance Programme (NSAP). The main aim of this scheme is to provide social protection to its beneficiaries by providing senior citizen pension, widow pension and pensions for disabled people.
Benefits of Indira Gandhi National Old Age Pension Scheme (IGNOAPS)
Employee Pension Scheme (EPS)
The EPF pension scheme was introduced by the government in 1995 and is also called as the Employees Pension Scheme 1995. The EPS scheme was launched by the Employee’s Provident Fund Organization (EPFO) and its main aim is to provide social security to the employees. The old pension scheme provides pension to the employees working in the organized sectors during their retirement i.e., after the age of 58 years. The benefits of which can only be availed by employees who have served for a minimum period of 10 years (continuous or non-continuous).
The Different Types of EPS or EPF Pension Scheme:
Benefits of Employee Pension Scheme (EPS)
Varishtha Pension Bima Yojana (VPBY)
Varishtha Pension Bima Yojana is a government pension scheme that offers income security as well as a guaranteed rate of return. It provides annuity pay-outs to senior citizens in the form of an Immediate Annuity Plan. This scheme is also known as LIC Varishtha Pension Bima Yojana since it is implemented through Life Insurance Corporation of India. In the scheme, the member needs to pay the premium of their choice at the beginning of the policy. Once this premium is paid, they are eligible for a regular pension. The Varishtha Pension Bima Yojana offers an assured pension based on a guaranteed rate of return of 8% per annum, for a period of 10 years. Here, the member can opt for the pension on a monthly, quarterly, half-yearly or annual basis.
Benefits of Varishtha Pension Bima Yojana:
Read More: Varishta Pension Bima Yojana For Senior Citizens: Eligibility, Benefits & Other Details
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