Pradhan Mantri Vaya Vandana Yojana (PMVVY): Pension Scheme for Senior Citizens
Last updated: 2026-11-13 · MockMentor
Pradhan Mantri Vaya Vandana Yojana (PMVVY) was a pension scheme for senior citizens aged 60 and above, run only by the Life Insurance Corporation of India (LIC). It opened on 4 May 2017 and was closed to new subscribers on 31 March 2023. Existing policies continue for their 10-year term.
In one line: a one-time investment with LIC that paid an assured pension for 10 years to protect seniors from falling interest rates.
At a glance
| Item | Details |
|---|---|
| Launched | 4 May 2017 |
| Status | No new policies after 31 March 2023 |
| Implementing agency | LIC only |
| Entry age | 60 and above, no upper limit |
| Term | 10 years |
| Maximum investment | ₹15 lakh per senior citizen |
| Pension | Minimum ₹1,000 a month; monthly, quarterly, half-yearly or yearly |
Key features
- Started with an assured 8% return; from 2020 the rate is reset every April in line with the Senior Citizens Savings Scheme (SCSS).
- If LIC earns less than the assured rate, the Government pays the difference as a subsidy.
- On maturity or death, the full purchase price is returned.
- Loans up to 75% of the purchase price after three policy years.
- Exempt from GST, but no Section 80C deduction, and the pension is taxable.
PMVVY vs SCSS
| Feature | PMVVY | SCSS |
|---|---|---|
| Tenure | 10 years | 5 years, extendable by 3 |
| Maximum | ₹15 lakh | ₹30 lakh |
| Section 80C | No | Yes |
| Agency | LIC only | Banks and post offices |
Possible exam questions
- How can savings schemes protect senior citizens from falling interest rates?
- Should assured-return schemes for the elderly be funded through subsidies? Discuss.
Complete notes in our courses: this page gives the essentials. The Super-Elite and Elite courses carry the full chapter with every update merged in, plus practice MCQs. Compare the courses.
More in Finance Ministry schemes
- National Pension System (NPS)
- Unified Pension Scheme (UPS)
- Atal Pension Yojana (APY)
- PM Jeevan Jyoti Bima Yojana (PMJJBY)
- PM Suraksha Bima Yojana (PMSBY)
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