Four pension schemes offered by the government for senior citizens

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Senior citizens have access to a variety of services and resources to help them live more comfortably and securely in India including pension plans, retirement benefits, healthcare, and travel discounts. The government offers a number of pension plans to encourage financial security after retirement. Some of the guaranteed pension plans offer advantages such as tax deductions on contributions and even loans.

The following are some of the top government schemes for senior citizens in India in 2022 and 2023.

National Pension System

The National Pension System (NPS) is a retirement savings and investment programme established by the Government of India to offer citizens of India security as they age. It offers a convenient way to efficiently organise your long-term savings with a secure, regulated market-based return. The Pension Fund Regulatory and Development Authority (PFRDA) oversees the Scheme.

NPS main objectives include

  • Provide old age income
  • Reasonable market based returns over the long term
  • Extending old age security coverage to all citizens

Any Indian citizen between the ages of 60 and 65 may also join NPS and remain a member until they are 70 years old. With the increase in the joining age, subscribers who want to join NPS later in life would be able to reap the benefits of NPS.

Indira Gandhi National Old Age Pension Scheme (IGNOAPS)
Senior individuals in India will get a monthly pension under the IGNOAP scheme. The senior citizens aged 60-79 years who fall into the BPL category receive a monthly stipend of Rs.300/-. When you reach the age of 80, your pension increases to Rs.500/- every month.
The Indira Gandhi National Old Age Pension Scheme is a pension that does not require contributions. It means that the beneficiary is not required to make any contributions in order to get the pension.

Atal Pension Yojana
To establish a universal social security system for all Indians, particularly the poor, the underprivileged, and those working in the unorganised sector, the Atal Pension Yojana (APY).
The subscribers to the APY will receive a minimum monthly pension of between Rs. 1000 and Rs. 5000 per month. All Indian citizens between the ages of 18 and 40 are eligible for the APY. PY is open to all bank account holders in the age group of 18 to 40 years and the contributions differ, based on pension amount chosen. Provided that from October 1, 2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY.

Varishtha Pension Bima Yojana
According to the Department of Financial Service website, “The scheme is administered through Life Insurance Corporation of India (LIC). Under the Scheme the subscribers on payment of a lump sum amount get pension at a guaranteed rate of 9% per annum (payable monthly). Any gap in the guaranteed return over the return generated by the LIC on the fund is compensated by Government of India by way of subsidy payment in the scheme. The scheme allows withdrawals of deposit amount by the annuitant after fifteen years of purchase of the policy.”

The then Finance Minister proposed to restart the program for a brief time from August 15, 2014, to August 14, 2015, for the benefit of citizens 60 and older in his Budget Speech for the year 2014–15.

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