Planning for your retirement? Check 5 government pension schemes before investing

LIC has rolled out a Saral Pension Scheme, which offers investors aged between 40-80 years to invest in an individual immediate annuity plan. Investors can buy the policy offline via a LIC agent or through the nearest LIC’s office They can also invest in the scheme online. 

 

LIC is currently offering yearly, half-yearly, quarterly, and monthly annuities with the Saral Pension Scheme. In the scheme, inventors can select from two types of annuity plans. In option one, they can receive an annuity with 100% returns on the purchase price while the section option offers an option to select a joint-life last-survivor who will continue to receive an annuity with 100% returns on the purchase price. 

The NPS was initially launched for only government employees in 2004. However, the scheme was later extended to all in 2009. Investors can invest in the NPS scheme till superannuation or 60 years of age, whichever is earlier. 

 

The scheme also offers tax benefits and tax-free withdrawals. Investors can also withdraw 25% of the entire corpus as an advance in case of emergencies. 

Atal Pension Yojana (APY) is a social security scheme launched by the Indian government. The scheme promises pensions ranging from Rs 1000 to Rs 5000 to workers in the unorganised sector. 

 

Citizens attaining 60 years of age can benefit from the Atal Pension Yojana. Beneficiaries receive a pension for a lifetime even in case of the death of the subscriber.  

LIC offers the Pradhan Mantri Vaya Vandana Yojana (PMVVY), a pension scheme that promises an assured rate of return of 7.40% p.a. payable monthly. However, policies taken by senior citizens under Pradhan Mantri Vaya Vandana Yojana should not exceed Rs 15 lakhs.

 

The minimum age of investing in the scheme is 60 years and the policy term is for 10 years. Investors get a minimum of Rs 1000 as pension and a maximum pension of Rs 10,000. 

The Senior Citizens Savings Scheme (SCSS) is a pension scheme aimed at providing benefits to retired employees. Under the scheme, retired citizens above the age of 60 years can invest a minimum of Rs 1000 and a maximum of Rs 15 lakh for a tenure of five years that is extendable by up to three years.