Retirement

PMVVY Pension Calculator

10,00,000
Max limit capped at ₹15,00,000 per policy holder.

Key PMVVY Scheme Details

  • Exclusively for Senior Citizens (Age 60 years or above).
  • Fixed Return rate of 7.40% p.a. active over 10-year policy term.
  • Maturity returns full initial investment amount.
  • Subject to tax under standard slab rates.
Pension Yield Payout

6,167

Paid monthly
Total Pension Earned

7,40,000

Over 10 year term
Maturity Proceeds

10,00,000

Principal refund

Total Accumulated Yields (10-Year Path)

What to do next

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PMVVY Payout Yield

Pension Payout = Investment Amount × 7.40% / Frequency Factor

Applies the fixed interest rate of 7.4% p.a. divided by frequency intervals (12 for monthly, 4 for quarterly).

Worked Example: ₹10 Lakh Investment

Investing ₹10,000,000 in PMVVY:
- Annual Interest: ₹74,000
- Monthly Pension: ₹74,000 / 12 = **₹6,167**

PMVVY: How Vikram Gave His 63-Year-Old Father ₹9,250 of Guaranteed Monthly Income

Vikram's father retired from Indian Railways with a modest pension and a deep-seated distrust of anything involving the stock market. "I've seen people lose everything in shares," he'd say, every time Vikram suggested mutual funds. After months of gentle persuasion (and several cups of chai), Vikram found a solution that satisfied both of them: the Pradhan Mantri Vaya Vandana Yojana.

PMVVY is a government-backed pension scheme exclusively for senior citizens (60+), managed by LIC. Vikram invested the maximum allowed amount — ₹15 Lakhs — on behalf of his father. At the prevailing rate of 7.40% per annum, his father started receiving ₹9,250 every month, deposited directly into his bank account on the first business day. Like clockwork.

The money covered his father's medicines (₹3,000), electricity and water (₹1,500), household groceries (₹4,000), and his morning newspaper subscription (₹750). The best part? At the end of 10 years, the full ₹15 Lakhs would be returned. His father's capital was completely safe.

PMVVY isn't going to make anyone rich. It won't beat inflation over 20 years. But for risk-averse senior citizens who need the psychological comfort of a guaranteed government-backed monthly check — it's irreplaceable. If your parents are sitting on an FD earning 6.5% with TDS being deducted, PMVVY at 7.4% with sovereign guarantee deserves a serious look.

Frequently Asked Questions

What is the maximum investment allowed in PMVVY?

The maximum investment under PMVVY is ₹15 Lakhs per senior citizen. This cap applies to the total purchase price across all policies under this scheme. Both husband and wife (if both are 60+) can each invest ₹15 Lakhs separately.

Is PMVVY interest income taxable?

Yes. The pension income from PMVVY is fully taxable under your income tax slab. However, senior citizens can claim deduction under Section 80TTB (up to ₹50,000 on interest income from banks and post offices—though PMVVY interest may not qualify under 80TTB directly).

What happens to the PMVVY investment after 10 years?

At the end of the 10-year policy term, the full purchase price is returned to the investor. If the pensioner passes away during the policy term, the purchase price is paid to the nominee. This makes it a capital-safe investment.

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