A United Nations Population Fund report suggests that the number of elderly persons is expected to grow to 2 billion by 2050, which makes up 22% of the total population.
In India itself, the elderly population is estimated to reach 300 million by 2050. To ensure that the country’s growing senior population is happy, healthy and self-reliant, the government of India has introduced several schemes.
Post-retirement, chances are you have a reduced income and ever-rising healthcare costs. This is where such government schemes can come in handy.
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Here is a look at some of the best schemes for senior citizens in India.
Senior Citizens Saving Scheme (SCSS)
This is a government-backed savings instrument offered to Indian residents above the age of 60. The deposit matures in five years and can be extended once for an additional three-year period.
One can avail of this scheme as an individual or jointly through a public/private bank or the Indian Post office. A minimum deposit of Rs 1,000 and a maximum of Rs 15 lakh can be made via this scheme. The interest rate for the quarter ending March 31, 2022, was 7.4% and is reviewed by the government every quarter. The accrued interest is compounded and credited quarterly and comes with tax benefits.
Investments made under this scheme are eligible for tax exemptions. If for some reason, you wish to withdraw money before the scheme matures, then there will be a penalty charge of 1.5% of the deposit amount deducted in case the withdrawal is before two years and 1% after two years.
For more information on this scheme, click here.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
This is a scheme offered by the Life insurance Corporation (LIC) of India that gives a guaranteed payout of pension at a specified rate for 10 years. Under this scheme, there is a cap on the amount that can be invested, an individual can invest from Rs 1,000 up to Rs 15 lakh. The scheme, however, offers no tax benefits.
In case of the beneficiary’s death before the tenure’s completion, the principal amount will be credited to the nominee’s account. This scheme also has the provision for a premature exit in case of critical illness of self or spouse. In such a case, 2% will be withheld as a penalty.
For Financial Year 2022-23, the Scheme offers 7.40% p.a. payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March 2023.
For more information on this scheme, click here.
Rashtriya Vayoshri Yojana (RVY)
Launched in 2017 by the Ministry of Social Justice & Empowerment of the Government of India, this scheme is fully funded by the Central Government.
Only for senior citizens who are below the poverty line or are BPL cardholders, this scheme offers physical aids and assisted-living devices for those suffering from low vision, hearing impairment, loss of teeth, and locomotor disability. Walking sticks, elbow crutches, walkers, hearing aids, wheelchairs, and artificial dentures are some of the aids that are provided under this scheme.
For more information on this scheme, click here.
Indira Gandhi National Old Age Pension Scheme (IGNOAPS)
Introduced in 2007 by the Ministry of Rural Development of India under the National Social Assistance Programme (NSAP), this scheme is specially intended for seniors above the age of 60 who fall below the poverty line.
The beneficiary must be a BPL cardholder and have no regular source of financial support from any other source. This scheme is a non-contribution pension; under it, the beneficiary will receive a monthly pension without any contribution from their end.
For more information on this scheme, click here.
National Programme for the Health Care of Elderly (NPHCE)
Launched in 2010 by the Ministry of Health & Family Welfare, this scheme aims to address various health-related concerns of Indian senior citizens. The healthcare services and facilities provided under this program are either free or highly subsidised.
The main objective of this scheme is to provide preventive, curative and rehabilitative services to older adults at various levels of the health care delivery system of the country. This means dedicated health facilities in District Hospitals, Community Health Centres (CHCs), Primary Health Centres (PHCs), and Sub-Centres (SCs) levels through the State Health Society.
For more information on this scheme, click here.
Remember, if you are looking for a pension scheme for yourself or your loved one, it is advisable to start investing from an early age so that you/they can grow your corpus over time and live a financially independent life as seniors.
Also, please research before enrolling or investing in any of the mentioned schemes and do pay attention to the fine print – that’s where the details are.
