PMVVY gives you 8.3% return and Rs 10,000 monthly pension

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for those aged 60 years or above. There is no maximum age for entry. This government scheme is currently open and those interested can invest in it till 31 March 2020.
It can be purchased offline as well as online, through Life Insurance Corp. of India.

The scheme provides an assured return of 8% to 8.30% per annum, depending on how you choose to get your payout—monthly, quarterly, half-yearly or yearly. The minimum purchase price for receiving a pension every month is Rs 1.5 lakh, which gives a pension of Rs 1,000 per month. The maximum purchase price for monthly pension is Rs 15 lakh, which will give Rs 10,000 per month.

The payout is taxable at the receiver’s marginal income tax rate. This scheme can be purchased from both online and offline. It has a policy term of 10 years. Under this scheme, a loan facility is also available after completion of 3 policy years. The maximum loan that can be granted shall be 75 per cent of the purchase price. It may be noted that pension payment shall be through NEFT or Aadhaar Enabled Payment System.

It is worth mentioning that the government recently made Aadhaar mandatory for subscribers of the pension scheme for senior citizens. The scheme, which envisages an assured rate of return of 8 per cent annually, is being implemented through Life Insurance Corporation of India (LIC). The scheme was announced in Union Budgets of 2017-18 and 2018-19.