About Pradhan Mantri Vaya Vandana Yojana Plan 856

Pradhan Mantri Vaya Vandana Yojana Plan 856 is a government-supported pension plan created for senior citizens to help them receive a guaranteed regular income after retirement. The scheme was managed by the Life Insurance Corporation of India and was introduced to provide financial stability to individuals aged 60 years and above.

What is the PMVVY Plan 856?

Pradhan Mantri Vaya Vandana Yojana Plan 856 is a pension scheme introduced by the Government of India for people who are 60 years or older. Under this plan, policyholders make a one-time investment and receive fixed pension benefits for a period of 10 years. The pension can be received monthly, quarterly, half-yearly, or annually according to the policyholder’s preference.

Pradhan Mantri Vaya Vandana Yojana (PMVVY) Plan 856

The plan is operated by Life Insurance Corporation of India and offered an assured return of around 7.4% per year for monthly pension payouts (around 7.66% yearly if the pension option selected is annual). At the end of the policy term, the purchase price is returned to the policyholder. In case of the policyholder’s death during the policy period, the amount is paid to the nominee.

Plan Availability Period

Start Date: 26 May 2020
Closing Date: 31 March 2023

The scheme was open for purchase during this duration only. After its closure, new policies under Plan 856 were no longer available. However, existing policyholders continue to receive pension payments and other benefits according to the original policy conditions.

Eligibility Conditions for PMVVY Plan 856

Eligibility Details	Conditions
Minimum Age	60 years completed
Maximum Age	No maximum age limit
Nationality	Must be an Indian citizen
NRI Eligibility	Not available for NRIs
Policy Duration	Fixed term of 10 years
Pension Options	Monthly, Quarterly, Half-Yearly, or Yearly

Main Features of Pradhan Mantri Vaya Vandana Yojana Plan 856

• Designed for senior citizens aged 60 years and above.
• Fixed policy term of 10 years.
• Government-guaranteed pension rates at the time of purchase.
• Pension rates according to payout mode:
  • Monthly: 7.4% per annum
  • Quarterly: 7.45% per annum
  • Half-Yearly: 7.52% per annum
  • Yearly: 7.66% per annum
• Maximum investment limit of ₹15 lakh per senior citizen.
• Pension payments are made regularly through NEFT or Aadhaar-enabled payment methods.
• Loan facility available after 3 years for up to 75% of the purchase price.
• Surrender option allowed only under special conditions such as terminal or critical illness, where 98% of the purchase price is refunded.
• In case of the pensioner’s death, the purchase price is returned to the nominee and the policy ends.
• At maturity, the purchase price along with the final pension installment is paid back to the policyholder.
• Death and maturity benefits are tax-free, while pension income is taxable.

Advantages of PMVVY Plan 856

• Provides guaranteed pension income for senior citizens.
• Offers secure investment support as the scheme was backed by the Government of India and managed by Life Insurance Corporation of India.
• Gives flexibility to choose the preferred pension payout frequency.
• Allows policyholders to take loans during financial emergencies.
• Ensures financial protection for family members through nominee benefits.
• Exempted from GST and service tax, making the scheme more cost-effe

Who Can Benefit from PMVVY Plan 856?

This scheme is suitable for senior citizens who:

• Want a secure and steady pension income after retirement.
• Prefer low-risk investment options supported by the government.
• Need guaranteed pension returns without market-related risk.
• Have a lump sum amount of up to ₹15 lakh for investment.
• Want access to a loan facility during emergencies.

PMVVY Plan 856 is best for individuals looking for financial stability and dependable returns instead of market-based investments.

How to Use the PMVVY Plan 856 Calculator?

The PMVVY calculator helps estimate the pension amount based on the investment made or calculates the investment needed for a desired pension amount.

Steps to Use the Calculator

1. Enter the pension amount you wish to receive.
2. Select the pension payout option — monthly, quarterly, half-yearly, or yearly.
3. Provide your age and investment amount.
4. Click calculate to view the estimated pension or required investment amount.

For example, to receive a monthly pension of around ₹9,250, an investment of approximately ₹15,00,000 is required under the monthly payout option for a 10-year period.

Sample Pension Calculation

If a person invests ₹10,00,000 under the monthly pension option at a return rate of 7.4%, the estimated monthly pension would be:

$y=frac{7.4}{12times100}times1000000$y=12×1007.4​×1000000

Approximate monthly pension = ₹6,167

The policyholder will receive around ₹6,167 every month for 10 years, and after completion of the term, the invested amount of ₹10 lakh will be returned as maturity benefit.

Important Details to Keep in Mind

• Pension rates are fixed only for the applicable scheme period.
• The maximum investment allowed is ₹15 lakh per senior citizen.
• Returns vary slightly depending on the selected pension payout frequency.
• Policy surrender is permitted only in cases of critical or terminal illness.
• Loan interest is adjusted against future pension payments.
• Pension income received under the scheme is taxable.

Process to Buy PMVVY Plan 856

Offline Purchase Method

• Visit the nearest branch of Life Insurance Corporation of India.
• Fill out the proposal form with required details.
• Make the one-time premium payment.
• Submit documents such as identity proof, address proof, and age proof.
• After verification, the policy is issued and pension payments begin according to the selected payout mode.

Frequently Asked Questions

What is PMVVY Plan 856?

Pradhan Mantri Vaya Vandana Yojana Plan 856 was a government-supported pension scheme for senior citizens aged 60 years and above. It offered guaranteed pension benefits for 10 years through Life Insurance Corporation of India.

Who is eligible to buy PMVVY Plan 856?

Indian citizens aged 60 years or above were eligible to purchase the scheme. There was no maximum entry age limit.

What is the duration of PMVVY Plan 856?

The policy term under the scheme is fixed at 10 years.

When was PMVVY Plan 856 introduced and discontinued?

The scheme started on 26 May 2020 and was withdrawn on 31 March 2023. New policies cannot be purchased after the withdrawal date.

What is the highest investment amount allowed?

A maximum amount of ₹15 lakh could be invested by each senior citizen under the scheme.

How are pension payments made?

Pension payments can be received monthly, quarterly, half-yearly, or yearly based on the option selected by the policyholder. Payments are made through NEFT or Aadhaar-enabled payment systems.

Final Words

Pradhan Mantri Vaya Vandana Yojana Plan 856 was a dependable pension scheme supported by the Government of India for senior citizens. It provided guaranteed pension income for 10 years along with flexible payout options and secure returns. Although the scheme closed on 31 March 2023, it remained a preferred choice for retirees seeking stable income and financial safety.

The PMVVY Plan 856 Calculator helps users estimate expected pension benefits or determine the required investment amount for their retirement planning. Understanding the scheme’s features, eligibility conditions, and benefits can help senior citizens make better financial decisions for the future.

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