Is PMVVY better than other senior citizen schemes
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Returns are superior to immediate annuity plans, but SCSS can secure better rates for new investors sooner if the cycle turns from here
The relentless fall in India’s interest rates over the last six years has been hard on retirees and regular income seekers. For seniors, exploring special government schemes before bank deposits or debt mutual funds makes a lot of sense, as they offer superior returns with high safety. We take stock of the modified Pradhan Mantri Vaya Vandana Yojana (PMVVY) and stack it up against competing avenues.
Features
PMVVY is a guaranteed pension scheme offered exclusively by the LIC. Open only to individuals who have completed 60 years, it promises regular pension payments at a monthly, quarterly, half yearly or yearly frequency in return for an upfront investment (called a purchase price).
A good balance of having a majority of their capital in short & medium term and relatively lower-risk investments, with only excess capital in longer-term or higher risk investments is best
From the conditions prescribed it appears that the government has outsourced the job of ensuring that appropriate tax from senior citizens is collected to the banks.
With no change in the repo rate and reverse repo rate by the central bank, the likelihood of an immediate reduction in borrowers loan equated monthly instalments (EMIs) is less. On the other hand, no change in policy rates means good news for fixed deposit (FD) investors as banks may not cut interest rates on FDs any further.
Budget 2021 Highlights: Chidambaram lashes out at govt; says migrants, farmers deceived
Union Budget 2021 Highlights: Congress leader P. Chidambaram said that the government had only marginally raised health funding, which when adjusted to inflation becomes nil
BusinessToday.In | February 1, 2021 | Updated 19:56 IST
Union Budget 2021: Although the government has claimed a massive increase of 137 per cent in health allocation in Budget 2021, Congress leader P. Chidambaram lashed out at the Centre saying the figure was just a conjurer s trick
Union Budget 2021
: Although the government has claimed a massive increase of 137 per cent in health allocation in Budget 2021, Congress leader P. Chidambaram lashed out at the Centre saying the figure was just a conjurer s trick. Chidambaram further said that the government had only marginally raised health funding, which when adjusted to inflation becomes nil.