You’re 65 – too old to make a financial plan?

You're 65 – too old to make a financial plan?

Planning for retirement is very much important to spend the golden years with great peace of mind. You can build a large corpus by contributing for retirement fund when you are young. There are various choices to make to prepare for retirement. If you too late to buy the pension plan, you should subscribe to a financial plan at the earliest. There are certain pension plans which are ideal to take care of your needs when you are 65 years and above.

Pradhan Mantri Vaya Vandana Yojana

The eligibility criterion for ‘Pradhan Mantri Vaya Vandana Yojana’ is very simple. The entry age for the plan is 60 years and there is no upper age limit. The policy has tenure of 10 years.

  • The scheme is available in between May 4, 2017 and May 3, 2018
  • An assured return of 8% is provided by the scheme for 10 years. If the policyholder dies during the term, the premium will be paid to the nominee.
  • The premium paid towards the pension plan is exempt from income tax under section 80c of the income tax act. The returns obtained from the plan should be accounted under the income and tax should be paid as per the tax slab.
  • Fixed regular returns are paid on monthly, quarterly, half-yearly or yearly as per the choice exercised by the policyholder.
  • On completion of the 10 year term, the purchase price of the plan will be returned by the insurance company.
  • The pension plan offers ‘surrender value’. If the policyholder or spouse is suffering from critical illness, the policy can be surrendered to the insurance company. The insurance company will return 98% of the policy amount.
  • The scheme can be purchased online or offline as per your convenience. The minimum subscription for the plan is Rs. 1, 50,000 and the maximum subscription is Rs. 7, 50, 000. If you pay a single premium, you will get discount as well.

Varishtha Pension Bima Yojana Plan by LIC

The plan advocated by Government of India and implemented by LIC offers annuity payouts. The senior citizen can subscribe to immediate annuity. The plan is available for people above 60 years of age. The plan offers a return of 9.3% per annum.

  • The policy has a lock-in period of 15 years. If you exit the plan before the term, you will want to pay 2% as the exit load.
  • The policyholder can take loan after 5 years.
  • It is a single premium plan.
  • Early surrender value is offered to the policyholder due to diagnosis with critical or terminal illness. It is possible to receive to the extent of 98% of the policy premium by surrendering the insurance plan.
  • The entry age for the plan is 60 years and there is no maximum age limit.
  • You can opt for monthly, quarterly, half-yearly or annual pension as per your needs.

LIC Jeevan Akshay 6 Plan

It is an immediate annuity plan. You can buy the plan by paying a lump sum amount. The pension will start immediately after buying the plan.

  • Minimum age – The age of the policyholder should be between 30 years and 85 years
  • Minimum purchase value – Rs. One lakh
  • Maximum purchase value – no maximum limit
  • The premium is exempted from the income tax.
  • Pension can be obtained on monthly, quarterly, half-yearly and yearly basis
  • Should provide the age proof

Benefits of annuity pension plans

Senior citizens above 65 years old can buy annuity pension plans to take care of their golden years. There are different kinds of annuity options. You can go through the following types to choose the best plan as per your needs:

  • Annuity plan with life payout
  • Annuity plan with life payout and guaranteed period
  • Annuity with purchase premium return
  • Annuity at fixed rate
  • Joint life and annuity survivor annuity plan

The selection of the annuity plan should be done as per the liquidity, returns, tax benefits, tax exemption on interest, minimum investment, maximum investment and additional benefits.

Some pension plans come with accidental rider and critical illness rider. There are plans which offer regular income from the age of 40 years. By choosing immediate annuity plans, seniors above 65 years can manage pension on monthly, quarterly, half-yearly and yearly without any issues.


Pension plans are ideal for senior citizens. Even though the interest rate on fixed deposits will decrease the pension rate will not come down throughout the term as committed by the insurance company. Hence, you should opt for the best plan after comparing the available plans. There will be greater returns through the senior citizen pension scheme and senior citizens are encouraged to subscribe to the best plan.

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