Keeping financial security intact is one of the many difficulties during retirement. When someone decides to retire, they need to feel financially secure. And because their income sources are drying up, their only option is to rely on pensions. Senior citizens’ sole source of income is from this pension, which enables them to lead stable lives during old age.
However, with pensions dwindling in both the public and private sectors, one must make sensible investments — if one wants to take advantage of pension plans in later years.
To ensure the financial security and stability of the nation’s older population after retirement, the government has introduced a number of unique pension plans. The top pension plans for seniors are listed below.
Atal Pension Yojana
Although India has a large number of pension plans, few of them serve low-income populations, particularly those in the unorganised sector. A notable exception is the Atal Pension Yojana. A minimal monthly contribution is required to participate in this government-sponsored pension programme, which encourages employees and labourers to save willingly for their retirement.
The National Pension Scheme
The NPS is the government’s best-known pension programme for older people. It is a pension programme with a focus on voluntary contributions, which offer members a wide range of advantages. When NPS first debuted in 2004, it was exclusively accessible to those working for the government. It was expanded to include all industries in 2009.
The NPS, which is overseen by the PFRDA (Pension Fund Regulatory and Development Authority), is expressly created to give older citizens financial stability after retirement. The programme enables members to make regular deposits into their NPS accounts while they are still employed, allowing them to save funds for their retirement.
Pradhan Mantri Vaya Vandana Yojna (PMVVY)
After retirement, this government-sponsored pension plan guarantees retirees social security and financial freedom through offers from investment returns. The policy, which offers guaranteed profits for 10 years, is only available from the biggest insurer in India, the LIC (Life Insurance Corporation of India).
Varishtha Pension Bima Yojna (VPBY)
A government pension programme called Varishtha Pension Bima Yojana provides assured returns and financial stability. The programme offers rapid annuity plans as a kind of annuity payout to the elderly. The VPBY, also known as LIC VPBY, is offered by LIC, and the individual is required to pay the premium of their choosing when the policy first begins.
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