What is Indira Gandhi Pension Yojana?

Getting old comes with many challenges, both physical and financial. Moreover, senior citizens belonging to low-income groups face many hardships after attaining old age. To combat this problem, the Government has implemented several pension plans to support senior citizens in creating a steady income and relieve their financial burden.One such measure is the centrally-sponsored National Social Assistance Programme (NSAP). The programme comprises of five sub-schemes, one of which is the Indira Gandhi Pension Yojana.

The Indira Gandhi National Old Age Pension Scheme, better known as the National Old Age Pension Scheme (NOAPS) or the Indira Gandhi Pension Yojana, 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 most real sense as it is a non-contribution pension plan.

To qualify as a beneficiary, the applicant must be:

• At least 60 years old
• Fall in the ‘Below Poverty Line’ category. The Planning Commission calculates the poverty line every yearby adjusting it for the effects of inflation.
• A destitute individual, that is, deficient in finances to the point of being unable to provide for oneself

The following individuals shall not be eligible to apply for pension under the Indira Gandhi Pension Yojana:

• Applicants receiving financial support from their family members or anyone else, in the form of a regular and reliable source of income.
• Widows who are living below the poverty line, falling in the age group of 60 to 64 years. Such women shall be covered under the Indira Gandhi National Widow Pension Scheme (IGNWPS).
• Below Poverty Line (BPL) senior citizens with severe disabilities. All individuals with more than 80% disabilities living below the poverty line shall be covered under the Indira Gandhi National Disability Pension Scheme (IGNDPS).

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, and five hundred rupees per month in case of individuals aged 80 years or above. The Government of India has urged all State Governments to make equivalent contributions from their end. The aim is to double the monthly pension amounts.The National Social Assistance Programme (NSAP), through its schemes, has been reasonably successful in infusing money into the below poverty line (BPL) class so as to uplift the individuals falling in this category.

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.