The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a social security scheme specifically designed for senior citizens, aimed at protecting them from the risk of declining interest rates and ensuring a stable income after retirement. Under this scheme, an individual can invest a specific sum of money and receive a pension at a fixed rate for a tenure of 10 years (payable on a monthly, quarterly, half-yearly, or annual basis). Upon the completion of the policy term, the invested principal or 'purchase price' is refunded to the subscriber. This scheme offers an assured income (approximately 7-8% annually, subject to government revisions) and, being sponsored or backed by the Government of India, is considered a safe investment option.
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