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Senior Citizens Pensions Schemes In India

Updated On Jan 11, 2022

No matter how old you are, you must always make money work for you. With ageing being a major stumbling obstacle for elderly individuals, finding the best suitable investment choice in India is critical. Seniors can invest in a number of different ways. However, what works for one investor may not work for another.

As a result, it is critical for consumers to understand the many investment options accessible to them before choosing the best investment plan for elderly folks in India. There are several strategies that an individual may employ to keep their retirement tax burden to a low when they begin to save for the future and continue the process once they retire. To find more for senior citizen pension schemes in India, read on.

Types Of Pension Schemes For Senior Citizens

Following are some of the listed pension scheme as options for senior citizens -

  • Senior Citizen Savings Scheme (SCSS)

Retirees in India are seeking programmes that would give them the greatest amount of security and a consistent income. Many people feel that the best senior citizen investment programmes are ones that are regarded as safe because they are guaranteed by a sovereign guarantee, which means that the Indian government backs them up. The Senior Citizen Saving Scheme (SCSS), which has been given by the Government of India since August 2004, is one such investment.

SCSS is a government-run savings programme. It's a completely risk-free debt instrument. Individuals over the age of 60 can invest in it, and they will get a guaranteed income for the term of the investment.

  • Pradhan Mantri Vaya Vandana Yojana (PMVVY)

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) of the Life Insurance Corporation (LIC) is a low-risk investing pension scheme. It had a ten-year term and an interest rate of 7.4 percent the previous year. Only elderly persons over the age of 60 can make a lump-sum investment in the plan.

The monthly pension under the system ranges from Rs 1,000 to Rs 10,000, depending on how much money a person has contributed. To participate in the plan, an individual must deposit a minimum of Rs 1.56 lakh and a maximum of Rs 15 lakh by March 31, 2020. The programme, however, has been changed and extended until March 31, 2023.

Keep in mind that any money you put into this programme will not qualify for Section 80C tax breaks. The PMVVY plan, on the other hand, is exempt from the Goods and Services Tax (GST). It also has the same interest rate as the senior citizen savings scheme (SCSS).

  • Recurring Deposits And Fixed Deposits

Two of the most common investment alternatives for retirees are fixed deposits (FDs) and recurring deposits (RDs). Senior folks are also offered higher interest rates on FDs and RDs by banks. Section 80TTB of the Income Tax Act exempts interest income up to Rs 50,000 for senior citizens during the course of a financial year.

Individuals can also invest in the Post Office Monthly Income Scheme (POMIS), which gives a monthly income that is predictable. Individuals can earn tax refunds on investments in tax-saver FDs with a five-year maturity term up to Rs.1.5 lakh. The interest gained on those investments, on the other hand, is taxed.


To summarise, research shows that human life may extend much beyond 100 years in a few generations. Indians have an average life expectancy of 70.8 years, according to statistics. As a result, an individual will need to plan ahead of time, examine all of their own life goals, and budget for the associated expenditures. Years of dedication must be followed by years of relaxation and regeneration. Retirement investments in the best senior citizens plans, as a cherry on top, provide just that. It ensures that a person would retire cheerfully from employment but not from experiencing life to the fullest.

You may also like to read - Mistakes You Must Avoid While Purchasing A Retirement Policy

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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