By jahanzaib 
Financial stability in old age is a subject that concerns everyone. Indian citizens, just like others around the world, worry about their financial security post-retirement. However, the Indian government has certain schemes that can help them achieve this stability. One such welfare initiative is the Pradhan Mantri Vaya Vandana Yojana (PMVVY), which was announced by the Indian government to provide a regular pension for senior citizens aged 60 years and above. This scheme, combined with some others like the Kisan Vikas Patra Scheme, can be utilized wisely to ensure financial stability in the later years of life.
About Pradhan Mantri Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) allows the senior citizens an assured return of 8% p.a. for 10 years. It does seem convenient as it provides an option for pension on a monthly, quarterly, half-yearly or annual basis. The minimum and maximum investment range for this scheme varies. If a senior citizen opts for the monthly pension, then the minimum investment is Rs 1,62,162 while the maximum can be Rs 15,00,000. For a yearly pension, the minimum investment starts from Rs 1,44,578 and goes up to Rs 14,49,086.
Consider an example, if Mr. Sharma, aged 65, invests Rs. 7,50,000 in PMVVY, he will stand to get Rs. 5,000 as monthly pension. This adds up to Rs. 60,000 annually which is an assured return of 8%.
A principal advantage of this scheme is that it provides an assured return in this day and age when rates of interest have been fluctuating all around the world. Thus, this yojana becomes a good option for old age pensioners as compared to bank FDs and post office monthly income schemes.
Apart from PMVVY, the Kisan Vikas Patra Scheme is another government-backed scheme that could ensure financial stability. This particular scheme doubles the investment in a time period of approximately 113 months (9 years and 5 months) at the current rate of 6.9%. It has a minimum investment requirement of Rs. 1,000 and no maximum investment cap which makes it beneficial for individuals who can save larger amounts.
Now let’s take an example of investing Rs. 10,000 in the Kisan Vikas Patra Scheme. The amount after 113 months would become Rs. 20,000. This return will not be influenced by the market as it’s a government-backed scheme.
conclusion
In conclusion, while both Pradhan Mantri Vaya Vandana Yojana and the Kisan Vikas Patra Scheme are beneficial schemes launched by the government, it is important for individuals to gauge all pros and cons of the schemes before investing. It is advised to compare these schemes with other options in the market and then decide based on the individual’s financial goals and risk appetite.
Disclaimer:
The investor must gauge all the pros and cons of participating in the Indian financial market. The value of any investment in the financial market can go down as well as up. Past performance cannot and should not be a guide to future performance.
Summary:
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) and Kisan Vikas Patra Scheme are government-backed schemes that can ensure financial stability in old age. PMVVY provides an assured return of 8% per annum for a duration of 10 years to senior citizens aged 60 years and above. The minimum investment starts from Rs. 1,44,578 and goes up to Rs. 14,49,086 and the individual is provided with the option of pension on a monthly, quarterly, half-yearly or annual basis. On the other hand, the Kisan Vikas Patra provides double the invested amount in approximately 113 months. Although both schemes are beneficial, it is advised to assess all pros and cons based on individual financial goals and risk appetite.