Important Notice (2026 Update)
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) was officially closed for new subscriptions by the Government of India on March 31, 2023. No new policies can be purchased. This calculator is maintained exclusively for existing subscribers who wish to track their ongoing pension amounts and maturity details. For new senior citizen investments, please check the SCSS Calculator.
What was the Pradhan Mantri Vaya Vandana Yojana (PMVVY)?
PMVVY was a pension scheme announced by the Government of India exclusively for senior citizens aged 60 years and above. Operated by the Life Insurance Corporation of India (LIC), it provided an assured return (pension) for a policy term of 10 years.
Key Features for Existing Subscribers
- Guaranteed Return: For policies purchased in the final year (FY 2022-23), the scheme offered an assured pension rate of 7.4% p.a. payable monthly.
- Tenure: The policy term is exactly 10 years.
- Maturity Benefit: If the pensioner survives to the end of the 10-year term, the Purchase Price (initial investment) along with the final pension installment is refunded.
- Death Benefit: Upon the death of the pensioner during the 10-year term, the entire Purchase Price is refunded to the nominee or legal heirs.
Taxability of PMVVY
It is important for existing subscribers to remember their tax liabilities:
- The regular pension amounts you receive (monthly, quarterly, etc.) are not tax-free. They are fully taxable according to your income tax slab.
- However, the scheme was exempt from GST.
Loan Facility
A highly useful feature for existing subscribers is the loan facility. Once you have completed 3 policy years, you can avail of a loan against your PMVVY policy to meet emergency medical needs. The maximum loan amount that can be granted is 75% of your original purchase price. The loan interest will be recovered from your future pension installments.
Key Characteristics & Comparison Overview
| Feature / Parameter | Details / Rules | Tax Implications |
|---|---|---|
| Primary Returns | Guaranteed / Market-Linked Growth | Taxable at Income Tax Slab Rates |
| Compounding / Payout | Quarterly / Annual Compounding | TDS deductions applicable where threshold met |
| Lock-in & Liquidity | Specified Tenure / Market Liquidity | Premature withdrawal penalties apply |