Respite for senior citizens
Scores of senior citizens waiting for a pension plan which is defined and is not subject to volatility would be pleased to hear about the Varishtha Pension Bima Yojana 2017, which was approved by the Cabinet before the Republic Day celebrations. The Prime Minister had announced about a scheme for senior citizens with guaranteed returns in his New Year speech. Days before the Union Budget, the government spelt out the details of the scheme, which will be managed by the LIC of India and launched in the current financial year.
The assured returns for a ten-year period at 8 per cent is a boon for senior citizens. Currenlty, most banks are offering deposits with 7-7.5 per cent rates with 5-10 year tenure. The other option— Senior Citizen Savings Scheme, has a five-year lock-in and currently offers 8.5 per cent interest, with maximum investment of Rs 15 lakh.
The Varishtha Pension Bima Yojana 2017 will enable options for pension on a monthly, quarterly, half-yearly or annual basis, which will help them with liquidity to meet their financial needs. Senior citizens looking for fixed and guaranteed returns should consider putting money in this scheme, especially those who have exhausted their savings in SCSS.