The Indian government offers various social security pension schemes, also known as Samajik Suraksha Pension Plans, to help people achieve financial security. As the name implies, these schemes enable people to save for retirement, while encouraging financial discipline and ensuring regular monthly contributions towards their retirement account. These schemes are particularly beneficial for those with physical disabilities or lack adequate financial resources. Investing regularly in these schemes will allow them to create a robust retirement corpus.

Also Read: How Can Senior Citizens In Haryana Register For Old Age Pension Scheme?

The Samajik Suraksha Pension plans are governed by different departments of the government ministries such as the Indian Post Office and the Pension Fund Regulatory Development Authority (PFRDA). These schemes offer attractive interest rates, ensuring not only guaranteed monthly income in old age, but also risk free as these are backed by the government.

Here are five most common Samajik Suraksha Pension schemes.

National Pension System (NPS)

The National Pension System (NPS) is regulated by PFRDA. It allows seniors to contribute a minimum of Rs. 500 in a Tier 1 account and Rs 1,000 for a Tier II account. There is no defined maximum limit. The scheme matures upon retirement or on reaching 60. It allows withdrawals up to 60 per cent of the total corpus in a lump-sum or systematically on maturity. The rest 40 per cent must be reinvested in an annuity plan managed by a designated fund manager. NPS allows tax exemptions up to Rs 1.5 lakh under section 80C of the Income Tax Act and an additional Rs. 50,000 under Section 80CCD (1), taking the total deductions to Rs 2 lakh annually.

Atal Pension Yojana (APY)

APY is a government-backed retirement savings scheme to provide pensions to people from the unorganised labour market, such as daily wagers. They can choose a pension amount of Rs 1,000, Rs 2,000, Rs 4,000, and Rs 5,000, depending on their contributions. The government contributes 50 per cent of a member’s contributions, or Rs 1,000 per year, whichever is lower, towards the scheme. It also provides tax benefits under Section 80CCD (1) of Income Tax Act.

Public Provident Fund (PPF)

PPF is a government-supported savings scheme for retirement. It provides 7.1 per cent returns annually. It falls in the tax exempt-exempt-exempt category—which provides a tax benefit of up to 1.5 lakh annually, besides exemptions on the principle, interest and maturity amount. PPF has a 15-year lock-in after and can be extended in blocks of five years indefinitely.

Also Read: How Does Taxable Income Be Calculated For Seniors Seeking Exemption From ITR Filing?

Indira Gandhi Old Age Pension Scheme (IGNOAPS)

The Indira Gandhi National Old Age Pension Scheme (IGNOAPS) is one of the four centrally sponsored schemes under the National Social Assistance Programme (NSAP). Citizens aged 60 or older living below the poverty line can apply for the scheme. It provides Rs 200 monthly for the first 79 years and Rs 500 beyond that. However, the state governments also contribute to the scheme, so the actual monthly pension amount can vary from one state to another. The policy provides social assistance to poor households in case of death, maternity, or old age.

Pradhan Mantri Suraksha Bima Yojana

The PMJJBY Accident Insurance Scheme provides coverage for death and disability due to an accident. The premium is Rs 20 per annum per member, deducted from the account holder’s bank or post office account via auto debit mode. Coverage is valid for a year. The coverage may terminate or restricted upon reaching the age of 70 or if the account is closed or insufficiently financed. The scheme offers tax benefits under Section 80C and death and disability benefits under Section 10(10D) of the Income Tax Act, 1961.