The demography of the country shows several development and welfare conclusions. The senior citizens can take advantageof benefits provided to them for their convenience and can ease their financial burden. Senior citizens seek for high-return investment options that provide them better security for their families and themselves as well. The best investment is one that provides sufficient returns while ensuring better safety. Thus investing in risk-free investment is a better option as having a various investment portfolio.The United Nations Population Fund report suggests that the number of senior citizens is expected to grow up to 2 billion by 2050 for 22 % of the total population. It is sufficient to say that the world is getting old which will impact every aspect of an economy like labour markets, goods and services and financial as well as sectors like housing, transportation, housing, social protection. The senior citizens should be viewed as great contributors to the process of development and their ability to affect social betterment must be taken into considerationat all levels. Public health care systems, pensions and social protection for senior citizensare going to be big issues for governments all around the world.Over the last one decade the Indian government has enhanced social security spending for the senior citizens. Many programs were launched by Ministries in association.
There are many schemes that have been offered by the government of India for senior citizens. In this article we list out five of them for senior citizens.
Senior Citizens Saving Scheme
- This scheme offered to the Indian residents above the age of 60.
- In this scheme the deposit matures in five years and thereafter it can be extended once for an additional period of three years.
- The senior citizens can avail this scheme either through aIndian post office or through the private/public bank.
- The interest rate for 2019 is at 8.6 per cent and is reviewed by the government every quarter.
- The accrued interest is compounded and credited quarterly.
- A minimum deposit of Rs 1,000 and a maximum of Rs 15 lakh can be madeunder this scheme.
- The Investment made under this scheme is eligible for tax exemptions.
- In case for some reason one wish to withdraw money before the scheme matures then there will be a penalty charge of 1.5 % of deposit amount deducted, withdrawal before two years, and 1 per cent after two years.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
- This scheme is managed by the (LIC) Life Insurance Corporation of India.
- Under this scheme the beneficiary is assured of 8% per annum return on the deposit. The return or pension will be payable for the period of 10 years or the beneficiary can choose the tenure of payment.
- Under this scheme one can invest maximum of Rs 15 lakh and a minimum of Rs 1,000.
- This scheme has no tax benefits.
- In case where the beneficiary died before the completion of the tenure, the principal amount will be given to the nominated beneficiary’s account.
- This scheme also has the provision for a premature exit in case of self or spouse critical illness.In this case 2% will be charged as a penalty.
Varishta Pension Bima Yojana
- This scheme is launched by the LIC and provides its beneficiaries 8 % per annum interest rate for a period of 10 years.
- Unlike other schemes, the senior citizen doesn’t have to go through any medical check-ups to avail for the benefits.
- This schemehas 15 years of lock period.
- If the beneficiary is diagnosed with a critical illness then they can make an early withdrawal.
- Under this scheme the policyholder will also get tax exemptions.If for some reason the one is not satisfied with the scheme then it can be canceled within 15 days from the start date.
The one can opt to get the pension payout monthly, quarterly, half-yearly or annually. - This is a single premium scheme and the premium will vary depending on the pension amount the policy holder wants.
- Under this scheme single premium of Rs 6,66,665 enables the beneficiary to receive Rs 5,000 per month and an annual premium of Rs 6,39,610 affords the pensioner a sum of Rs 60,000 per annum.
Rashtriya Vayoshri Yojana
- This scheme is only available for those senior citizens who are below poverty line and are BPL cardholders.
- Senior citizens suffering from low vision like loss of teeth, hearing impairment, and locomotor disability will be provided with assisted living devices.
- Under this scheme a committee chaired by the Deputy Commissioner or District Collector with the help of the State governments identifies those senior citizens who are eligible for this scheme.
- 30 per cent of the beneficiaries from each district under this scheme will be women.
- There are many aids like Walking sticks, elbow crutches, walkers, hearing aids, wheelchairs, and artificial dentures that are provided under this scheme.
- The scheme will be implemented in 260 districts and it will benefit almost 5 lakh plus beneficiaries in 2019-2020.
Indira Gandhi National Old Age Pension Scheme
- This scheme is introduced in 2007 by the Ministry of Rural Development of India and popularly known as (NOAPS)National Old Age Pension Scheme.
- This scheme provides social benefits to all senior citizens, widows and those with disabilities.
- This scheme provides to the beneficiary a monthly pension.
- The interesting part under this scheme is that it is a non-contributing scheme which means that the beneficiary does not have to any amount to receive the pension.
- The beneficiary must be a BPL cardholder and have no regular source of income or financial support from any other source.