Five Government Schemes For Senior Citizens That Can Help Create A Steady Income

Senior citizens in India make up about 9% of the population as per the 2011 census, and this figure is projected to increase in the years to come. Getting old comes with many challenges, both physical and financial. To combat this problem, the Indian Government has set up various policies and measures for the welfare and social security of its senior citizen population.Let us take a look at the top five government schemes dedicated to senior citizens that can help them create a steady income throughout life:

The Pradhan Mantri Vaya Vandana Yojana is a pension scheme newly launched by the Government of India, exclusively for senior citizens aged 60 and above. The scheme offers an assured interest of 8% p.a., payable monthly for ten years. The pension amount ranges from Rs. 12,000 p.a. to Rs. 12,0000 p.a. is payable at regular intervals (monthly, quarterly, six-monthly, yearly) as chosen by the pensioner.

The Senior Citizen Savings Scheme (SCSS) is a government-sponsored savings instrument designed to generate income for senior citizens in India. It is a voluntary account that can be opened with a minimum deposit of one thousand rupees or any sum in multiple of one thousand rupees, subject to a maximum of fifteen lakhs rupees.The Senior Citizen Savings Scheme (SCSS) yields an attractive rate of interest, which usually lingers in the 8% to 8.5% bracket. In order to be eligible to avail the benefits of the scheme, the subscriber needs to an individual who has attained the age of-

• 60 years and above
• 55 years or more but less than 60 years and who has retired on superannuation or otherwise on the date of opening an account/li>

The Indira Gandhi National Old Age Pension Scheme, better known as the National Old Age Pension Scheme (NOAPS), extends financial assistance and support to senior citizens falling in the Below Poverty Line (BPL) category. It aims to operate in favour of social welfare in the truest sense as it is a non-contribution pension plan.Beneficiaries under this scheme are entitled to receive two hundred rupees per month, in case of individuals falling in the 60-79 years age bracket, or six hundred rupees per month in case of individuals aged 80 years or above.

The Government of India, through the Ministry of Social Justice and Empowerment, has launched a healthcare aid measure by the name of Rashtriya Vayoshri Yojana (RVY). This scheme is set up for senior citizens with disabilities falling below the standard poverty line. Assisted living devices like walking sticks, elbow crutches, walkers, hearing aids, spectacles, wheelchairs and artificial dentures are some of the benefits granted under this scheme.

Life Insurance Corporation (LIC) of India has introduced a social assistance scheme called Varishta Pension Bima Yojana. It is an immediate annuity plan with the option of contributing a lump-sum premium. Unlike other plans, the policy-holder does not need to undergo any medical check-ups to avail of the benefits of this scheme. Under this scheme, the policy-holder shall receive an annuity. The policy-holder can set the frequency of payout to monthly, quarterly, half-yearly, or yearly.Thus, it can be understood that the Government has implemented several pension plans to support senior citizens in creating a steady income and relieve their financial burden.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.