2025 Guide: Top Government Retirement Plans For Senior Citizens In India

Retirement represents an important change in an individual's life with both opportunities and challenges. Given the significance of financial independence and health security to seniors, the Indian government has launched many schemes to assist senior citizens. The schemes have a combination of regular income, tax savings, and health security in place to maintain a satisfactory quality of living in the golden years of life.

Top 7 Sarkari Pension Yojanas for Retired Citizens in India [2025 Update]

The following is the list of the best 7 government schemes that were launched especially for retired citizens in India.

1. Senior Citizens Savings Scheme (SCSS)

The SCSS is a government-backed savings scheme allowing individuals aged 60 years and older to invest. The SCSS offers a very suitable interest rate of 7.4% per year (from 2025), making it a good option to invest personal savings as a retiree. This scheme offers an interest rate guaranteed by the government through a scheme developed for this purpose, with interest payments made quarterly. The scheme offers a 5-year tenor, and the tenor can be extended for an additional 3 years. The maximum investment under the SCSS scheme is ₹15 lakh, and the interest received is deductible from total income under Section 80C of the Income Tax Act.

2. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens 60 years of age and above managed by the Life Insurance Corporation of India (LIC). The scheme offers an assured return of 7.4% per annum for a policy term of 10 years, with an investment limit of ₹15 lakh. Pension payments can be received monthly, quarterly, half-yearly, or annually, depending on the choice of the investor and also offers a loan facility after three policy years.

3. Atal Pension Yojana (APY)

The Atal Pension Yojana (APY) is a government scheme that provides a fixed pension for workers in the unorganised sector. If one is aged between 18 and 40, they can enrol on this scheme, receiving a pension of ₹1,000 to ₹5,000, provided they do so at the age of 60. The Indian government co-contributes up to 50% of the total contribution, or ₹1,000 a year, whichever is lower, for eligible subscribers. The scheme is a way to provide a source of financial security for the elderly, especially those without formal employment.

Also Read: Top Government Schemes For Girl Child In India

4. Indira Gandhi National Old Age Pension Scheme (IGNOAPS)

IGOPS is part of the National Social Assistance Programme (NSAP), offering financial assistance for poor elderly individuals. For beneficiaries aged between 60 and 79, financial assistance is ₹200 per month, and ₹500 a month for beneficiaries over the age of 80. The scheme is intended to help secure basic needs and the needs of the elderly who do not have a consistent income.

5. National Pension System (NPS)

NPS is mainly a voluntary, long-term retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). NPS is open to Indian citizens between the ages of 18-70. The contributions made to the NPS are invested in various instruments such as equities, corporate bonds, government and treasury securities, and other assets in the form of a steadily diversified (as per age of the subscriber) mix, offering market-linked returns. So, upon retirement, one can withdraw part of the corpus as a lump sum and use the rest to buy an annuity, which will serve as a steady pension. Also, NPS has tax benefits that pertain to the Income Tax Act, Sections 80C and 80CCD.

6. Varishtha Pension Bima Yojana (VPBY)

The government has established a pension scheme to provide social protection to senior citizens aged 60 and above, with the product called Varishtha Pension Bima Yojana (VPBY). In the scheme, the pension is assured based on the underlying guaranteed return of 8% per annum for 10 years. The scheme is administered by LIC with a minimum and maximum investment of ₹1,50,000 and ₹15,00,000, respectively. The policyholder can choose to receive the pension on a monthly, quarterly, half-yearly, or annual basis.

Also Read: Top 10 Government Health Insurance Schemes in India

7. Rashtriya Vayoshri Yojana (RVY)

RVY is a central sector scheme to provide physical aids and assisted-living devices to senior citizens in the BPL category. The beneficiaries, who are aged above 60, are age-related disabilit, such as low vision, hearing impairment, loss of teeth, and locomotor disabilities are provided with devices, which include walking sticks, hearing aids, wheelchairs, and dentures. The scheme ensures that the elderly can lead an active and dignified life.