How Senior Citizens Can Double Their Investments with SCSS and PMVVY ?

This article explores how senior citizens can optimize the use of SCSS and PMVVY schemes to secure a regular income with almost risk-free returns.


Senior citizens require a steady stream of income in their retirement years. For this reason, the Government of India offers various schemes such as the SCSS and PMVVY that can provide senior citizens with a regular income. 

What is SCSS: Senior Citizens Savings Scheme.

The SCSS is a savings scheme for senior citizens that offers an interest rate of 8 % per annum. Recently, the Government of India announced that the SCSS investment limit will be doubled to ₹30 lakh from the existing ₹15 lakh. This move aims to offer a higher interest income for senior citizens. This scheme's tenure is five years, and the interest rate is locked for the entire term.

What is PMVVY: Pradhan Mantri Vaya Vandana Yojana. 

A pension scheme for citizens who are 60 yrs and ahead. This scheme offers a regular income to senior citizens who invest in it. This scheme is about to be shut down for now. The scheme offers a pension rate of 7.4 % per annum, and the tenure is 10 yrs. Senior citizens can invest up to ₹15 lakh in this scheme until March 31, 2023.

Double your investments with SCSS and PMVVY: 

By using the investment limits individually, a senior citizen couple with ample funds can potentially double their investments in these schemes. For instance, consider a scenario where a retired couple has invested Rs 60 lakh in SCSS and Rs 30 lakh in PMVVY, generating an annual interest income of approximately Rs 7 lakh.

Senior citizens can maximize the use of both schemes by investing ₹15 lakh in each scheme. This will enable them to use the upper limit of both schemes by March 31, 2023, before PMVVY is scheduled to close. By investing ₹15 lakh in SCSS, senior citizens can earn an annual interest income of ₹1.2 lakh at the current interest rate of 8 % per annum. By investing ₹15 lakh in PMVVY, senior citizens can earn an annual income of ₹1.11 lakh at the current pension rate of 7.4 % per annum.

From April 1, 2023, senior citizens can invest an additional ₹15 lakh in SCSS to benefit from the increased limit of ₹30 lakh. The interest income adds up to about ₹3.5 lakh annually, or over ₹ 29,100 monthly.

Also Read: Senior Citizens FD rates

Strategies for investing in both schemes based on available funds

The interest adds up to about ₹ 3.5 lakh annually, or over ₹ 29,100 monthly. With a total of ₹ 60 lakh in SCSS and ₹ 30 lakh in PMVVY, a retired couple can generate about ₹ 7 lakh per year in interest income.

Other investment options for senior citizens: POMIS and Mahila Samman Savings Certificate. 

The budget has announced the doubling of the SCSS investment limit to ₹30 lakh from ₹15 lakh and that of the Post Office Monthly Income Scheme (POMIS) to ₹9 lakh. The Mahila Samman Savings Certificate is a government-backed scheme that encourages women to save money. It offers an interest rate of % 7.5and a maturity period of 2 years.

Our Expert Opinion: 

Senior citizens can benefit from the SCSS and PMVVY schemes by investing in them to earn a regular income. The recent announcement of doubling the SCSS limit to ₹ 30 lakh offers senior citizens a chance to earn a higher interest income. It is advisable to invest in both schemes before March 31, 2023, and maximize their returns. Senior citizens can also consider investing in debt and equity funds to earn a higher return on their investments.



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