Pradhan Mantri Vaya Vandana Yojana (PMVVY) 2026
Closed for new subscription after 31 March 2023.
Closed for new investment · Updated 27 September 2026What is Pradhan Mantri Vaya Vandana Yojana (PMVVY)?
PMVVY was a pension scheme for senior citizens run by LIC. It closed for new subscribers on 31 March 2023; existing policies continue for their 10-year term.
PMVVY at a glance
| Particular | Details |
|---|---|
| Status | Closed (31 March 2023) |
| Operator | LIC |
| Tenure | 10 years |
Government-notified terms for July–September 2026 (Q2 FY 2026-27). Verify the latest notification before investing.
Features & benefits of PMVVY
Monthly/quarterly/half-yearly/yearly
Eligibility — who can invest?
- Was for 60+
How does PMVVY work?
- Existing policies pay pension until term ends.
Tax benefits of PMVVY
| Stage | Tax treatment |
|---|---|
| Pension | Taxable |
Section 80C of the Income-tax Act, 1961 is Section 123 of the Income-tax Act, 2025 from tax year 2026-27. Deductions apply only in the old tax regime.
Withdrawal, premature closure & maturity rules
| Situation | Rule |
|---|---|
| Premature | Critical illness — 98% of purchase price |
At maturity
| Option | What happens |
|---|---|
| After 10 years | Purchase price returned |
Loan against PMVVY
| Parameter | Rule |
|---|---|
| Loan | Up to 75% after 3 policy years |
How to open / invest in PMVVY
- Not available
PMVVY vs other saving schemes
| Scheme | Rate | Tenure | Minimum | Tax |
|---|---|---|---|---|
| PMVVY | 7.4% (last) | 10 years | — | Pension taxable |
| SCSS | 8.2% p.a. | 5 years, extendable in 3-year blocks | ₹1,000 | EET — deduction on deposit, interest taxable |
| POMIS | 7.4% p.a. | 5 years | ₹1,000 | Taxable — no deduction |
| NPS | Market-linked | Till 60 (can stay invested up to 85) | ₹1,000 per year (Tier I) | EET — partly tax-free at exit |
| APY | Guaranteed pension | Till 60 | ₹42/month (age 18, ₹1,000 pension) | Contribution under 80CCD(1) |
Frequently asked questions
What is the alternative to PMVVY?
SCSS for quarterly income and annuity plans.
Information is for education and comparison. Interest rates are notified by the Government every quarter and scheme rules can change — confirm with India Post, your bank, EPFO or PFRDA before investing. FinancePortal is not a financial or tax adviser.