👵 Pradhan Mantri Vaya Vandana Yojana (PMVVY) 2025 – A Complete Guide

The golden years of life deserve stability, dignity, and dependable income. The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme tailored for Indian senior citizens to ensure a regular, assured income post-retirement. Backed by the Government of India and operated through LIC, PMVVY offers guaranteed pension payouts for 10 years.

Let’s explore every detail of PMVVY in 2025 — features, benefits, eligibility, how to invest, interest rate, and much more.

📌 What is the Pradhan Mantri Vaya Vandana Yojana (PMVVY)?

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a non-linked, non-participating pension scheme launched by the Government of India and managed by Life Insurance Corporation (LIC).

It provides guaranteed monthly, quarterly, half-yearly, or annual pension payouts for 10 years to senior citizens aged 60 years and above.

It is a safe investment option with assured returns, ideal for those seeking stability over market-linked gains.

🔑 Key Features of PMVVY (2025)

✅ Good to Know: PMVVY is not a mutual fund or insurance-linked product. It’s purely a pension assurance scheme backed by the central government.

👥 Who is Eligible for PMVVY?

To invest in PMVVY, the applicant must:

• Be an Indian citizen (resident)

• Be 60 years or above at the time of entry (no maximum age limit)

• Invest within the maximum cap of ₹15 lakh per individual

📢 Note: PMVVY is not open to NRIs or HUFs.

🏦 Where Can You Buy PMVVY?

PMVVY is exclusively offered by Life Insurance Corporation (LIC). You can buy it through:

• LIC Branch Offices

• LIC Agents

• Online at: https://licindia.in

🖊️ Pro Tip: Online purchase often comes with minimal documentation and no need for physical visits.

📑 Documents Required for PMVVY Application

• Filled PMVVY Application Form (available online/offline)

• Proof of Age (Aadhaar, PAN, Voter ID, Passport)

• Identity and Address Proof (Aadhaar, PAN, Utility Bill)

• Photograph (Passport-sized)

• Bank account details (for pension disbursement)

💸 Pension Payment Options in PMVVY

You can choose how frequently you want to receive your pension:

📌 Important: The maximum investment limit of ₹15 lakh applies per individual, not per mode.

🔥 Benefits of Pradhan Mantri Vaya Vandana Yojana (PMVVY)

1. Assured Pension for 10 Years

   • Fixed and guaranteed pension regardless of market conditions.

2. Return of Investment

   • On maturity, you get back your original investment amount.

3. Government-Backed Scheme

   • Fully secured by the Government of India and managed by LIC.

4. Flexible Pension Modes

   • Choose between monthly, quarterly, half-yearly, or yearly payouts.

5. Loan Facility

   • Avail up to 75% of purchase price after 3 years for emergencies.

6. Premature Exit in Emergencies

   • Exit the scheme and get 98% of the investment back for critical illnesses.

7. Spouse Coverage

   • After the policyholder’s death, spouse receives the purchase price.

8. No Medical Tests Needed

   • Hassle-free enrollment without health checks.

🏁 How to Apply for PMVVY – Step-by-Step

1. Visit LIC Branch or https://licindia.in

2. Fill in Application Form with personal, nominee, and pension mode details

3. Submit documents (ID, Address, Age proof, bank details)

4. Pay investment amount (minimum ₹1.5 lakh, maximum ₹15 lakh) via cheque/NEFT/online

5. Receive policy bond and start receiving pension as per chosen frequency

✅ Online Route: The simplest way — no need to visit any office. All steps including payment can be completed digitally.

🧮 PMVVY Returns Example (2025)

Let’s say you invest the maximum amount ₹15,00,000 and opt for monthly pension:

• Monthly pension = ₹9,250

• Annual pension income = ₹1,11,000

• Effective return = approx. 7.4% per annum, paid monthly

• After 10 years, ₹15 lakh (original purchase price) is returned

🎯 Total value over 10 years = ₹11,10,000 (pension) + ₹15,00,000 (maturity) = ₹26,10,000

🆚 PMVVY vs SCSS – Which One is Better?

🎯 Combo Strategy: Many retirees invest in both SCSS and PMVVY to diversify income sources and maximize safe returns.

🚨 Things to Keep in Mind

• Pension income is taxable: Include it in your annual income while filing taxes.

• No partial withdrawals allowed.

• Choose pension frequency wisely: Monthly gives smoother cash flow, yearly offers slightly higher return.

• Submit life certificate periodically: To continue receiving pension.

❓ FAQs on PMVVY (2025)

Can I invest in PMVVY and SCSS together?

Yes. PMVVY and SCSS are independent schemes. You can invest in both up to their individual limits.

Is PMVVY safe?

Yes. It’s a government-backed scheme managed by LIC, ensuring complete safety of capital.

Is PMVVY available for NRIs?

No. PMVVY is only available to resident senior citizens of India.

Is PMVVY tax-free?

No. The pension income from PMVVY is taxable. However, there is no TDS deduction.

What happens after 10 years?

Your pension stops, and the purchase price is returned to you (or to nominee in case of death).

🧾 Conclusion

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a powerful tool in a senior citizen’s retirement strategy — especially for those seeking a guaranteed pension, capital safety, and peace of mind. While it may not offer aggressive growth like mutual funds or stocks, PMVVY delivers where it matters most: financial stability and security in retirement.

If you’re 60 or above and want assured monthly income for 10 years — PMVVY should definitely be on your radar.

🔗 Useful Resources

• LIC PMVVY Policy Calculator

• Pension Schemes for Senior Citizens – MyGov

Read about Senior Citizens Savings Scheme (SCSS) - here

Got more questions about Indian government processes and schemes? Ask Jaankaar Bharat

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