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Retirement is one of the new adjustments that comes along with getting older. The few things that were shown as simple in the past few years now tend to become a burden after a certain age. The pension plans now come into the hands when it becomes not possible to get the paycheck regularly.
Retirement can be a worry because of financial instability. Individuals who spend all of their living on earnings money will find retirement a little uncomfortable. Keeping these things in mind, the government launched various schemes to ensure financial stability and security after retirement.
Let’s see the various best pension schemes for senior citizens:
National Pension Scheme (NPS)
The NPS is launched in the year 2024 by the PFRDA. It is mainly designed to give financial security to senior citizens. It allows the individual to make a regular contribution to their account while working. The individuals can also withdraw from the sale in case of an emergency.Eligibility:
- One must be a citizen of India.
- The minimum age should be 18 years, and the maximum age is 65 years.
- The individuals must be KYC-compliant.
Benefits:
- It gives benefits to the investors over the schemes of the fixed incomes, and laws give the tax exemption into Sections 80C and 80CCD.
- It gives regular monitoring and transparency in investment as per the PFRDA norms.
- The individuals can select the option of the pension fund and the investment.
Atal Pension Yojana (APY)
Atal Pension Yojana is one of the government schemes that aims to give pension benefits with the least contribution every month. This scheme mainly targets the unorganized sector. It encourages the worker to make the savings for retirement by making the least contribution every month.Eligibility:
- The individuals must belong to the low-income group.
- The individuals must be aged 18-40 years.
Benefits:
- The workers belonging to the unorganized sectors can save for their retirement by making a small monthly contribution.
- The nominees of the Atal pension plan are entitled to the accumulated funds or pension money in certain situations, like the death of the contributor.
Pradhan Mantri Vaya Vandana Yojana
The yojana gives social security and financial help after retirement by giving the appropriate rate of return on various investments. This scheme is only given by the LIC and gives an assured return for the next 10 years.Eligibility:
- One must be an Indian citizen.
- One must be above the age of 60 years.
Benefits:
- The beneficiaries of the plan will get an annual return of 8% on their investment.
- After 10 years, the pension or return will be paid.
- The individuals can contribute a maximum of 15 lakh and a minimum of Rs 1000 to this plan.
Indira Gandhi National Old Age Pension Scheme (IGNOAPS)
This scheme plays an important role in giving financial security to the elders. It is one of the pension plans in India. It was introduced in the year 2007 and is mainly known as the NSAP. The main aim of this scheme is to give social protection to its beneficiaries by giving them the senior citizen pension and widow pension for disabled persons.Eligibility:
- One must be 60 years of age or older.
- The one must come into the low-income or below the poverty line.
- One must not hold any of the other sources of income.
Benefits
- This scheme aims to give financial help to the senior citizens.
- This scheme gives the Indian senior citizen a monthly pension.
- This amount will be directly credited to the bank account of the beneficiaries.
Employee Pension Scheme (EPS)
It was introduced in the year 1995 by the government, and it is also called the EPS 1995. It was launched by the EPFO, and its main aim is to give the employees social security. It gives pensions to the employees who are working in the organized sectors during their retirement.Eligibility:
- One must be a member of the EPFO.
- Must be of the age 58 years or above, not older than this.
Benefits
- Gives the employees social security.
- The pension is given to the employees who worked in the organized sectors at their retirement.
- The EPFO account will be transferred to the member’s widow or children if the beneficiary dies.
Varishtha Pension Bima Yojana
It is the government pension scheme that gives the income security as well as the rate of return. It gives the annuity payouts to senior citizens. This scheme is mainly known as the LIC Varishtha Pension Bima Yojana. Under this scheme, the individuals have to pay the premium as per their choice at the beginning of the policy.Eligibility:
- Individuals above 60 years of age are eligible.
- There is no age limit for the upper age.
Benefits
- The NEFT or ECS will make the payment into this policy.
- It gives an assured pension with a guaranteed interest rate of 8% per annum.
- As per section 80 C, the premium is tax-exempt.