5 Government Schemes for Retirement Planning in India

When it comes to ensuring a stress-free post-retirement life, starting early with the right plan is crucial. If you’re wondering, “What is the Government scheme for retirement in India?” this blog has your answer. India offers multiple government-backed options that help citizens build a secure retirement corpus with assured returns.

Let’s explore the 5 best retirement plans in India launched or backed by the government, ideal for different income groups and risk profiles.

Know When Should You Begin Retirement Planning?

Table: Overview of 5 Government Retirement Schemes in India

Scheme NameEligibilityInterest/ReturnsLock-in/WithdrawalIdeal For
National Pension System (NPS)Citizens aged 18–70 yearsMarket-linked (8–10% avg)Till 60 years of agePrivate sector employees, freelancers
Employees’ Provident Fund (EPF)Salaried employees (organised)8.15% p.a. (FY 2023-24)Withdrawable after 58Salaried individuals
Atal Pension Yojana (APY)Citizens aged 18–40 yearsFixed monthly pensionAfter age 60Low-income and unorganised sector
Senior Citizens Saving Scheme (SCSS)60+ years (or 55+ retirees)8.2% p.a. (Q2 FY 2025)5 years (extendable by 3)Retirees, conservative investors
Pradhan Mantri Vaya Vandana Yojana (PMVVY)60+ years (open to all)7.4% p.a. (monthly payout)10 yearsPensioners looking for fixed income

1. National Pension System (NPS)

One of the most flexible and tax-efficient retirement planning tools, NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). You can invest monthly or annually in equity and debt instruments, and upon retirement, withdraw 60% as a lump sum and the rest as a pension.

  • Returns: Market-linked (8–10% historical average)
  • Tax Benefits: ₹1.5 lakh under Sec 80C + ₹50,000 under 80CCD(1B)

Ideal for: Young professionals, private sector employees, or anyone asking “What is the Government scheme for retirement in India?”

2. Employees’ Provident Fund (EPF)

Managed by the Employees’ Provident Fund Organisation (EPFO), this is a mandatory saving scheme for salaried employees in the organised sector. Both employer and employee contribute 12% of the salary monthly.

  • Interest Rate: 8.15% p.a. (as of FY 2023–24)
  • Withdrawals: Full withdrawal at 58 or partial under certain conditions

EPF is one of the best retirement plans in India for salaried individuals seeking safe, long-term wealth accumulation.

3. Atal Pension Yojana (APY)

Designed for workers in the unorganised sector, APY ensures a fixed pension of ₹1,000 to ₹5,000 per month after 60, depending on your contribution and age of entry.

  • Age Limit: 18 to 40 years
  • Government Co-Contribution: Applicable in some cases for initial subscribers
  • Returns: Fixed pension, guaranteed by the government

This scheme is perfect for people with limited means who want a secure income in old age—making it a notable government initiative for retirement planning in India.

4. Senior Citizens Savings Scheme (SCSS)

Meant for individuals above 60 (or 55+ under VRS), SCSS offers one of the highest assured returns among government-backed retirement schemes.

  • Interest Rate: 8.2% p.a. (for Q2 FY 2025)
  • Tenure: 5 years (extendable by 3 years)
  • Investment Limit: ₹30 lakh (increased from ₹15 lakh)

You receive quarterly interest payouts, making this ideal for retirees needing regular income with capital safety.

5. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Offered by LIC, PMVVY is a pension scheme for senior citizens that assures monthly, quarterly, half-yearly, or annual returns.

  • Age Limit: 60+ years
  • Interest Rate: 7.4% p.a. (fixed for 10 years)
  • Maximum Investment: ₹15 lakh
  • Returns: Guaranteed pension payout

For those above 60 looking for stable post-retirement income, this is among the best government retirement plans in India.

Why You Should Start Planning Early

The earlier you begin investing in these government schemes, the higher your retirement corpus will grow. For instance:

  • Investing ₹6,000/month in NPS starting at 25 can yield over ₹1.5 crore by 60.
  • A consistent EPF contribution over 30 years ensures a large retirement lump sum plus interest.
  • APY subscribers as young as 18 pay as little as ₹42/month for a ₹5,000 monthly pension.

Conclusion

Whether you’re a salaried individual, a gig worker, or nearing retirement, these 5 government schemes for retirement planning in India provide safe, tax-saving, and high-return options. So if you’re wondering, “What is the Government scheme for retirement in India?” the answer lies in choosing the right mix of these plans based on your age and goals.

Start early, stay consistent, and secure a peaceful retirement.

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