Budget 2017: Retirees may get assured 8% interest on pension

MUMBAI: Lower interest rates need not worry those on the verge of retiring or have just retired. The government plans to provide pension benefits with an assured return of 8% through Life Insurance Corporation to those above 60 as it pushes social security in a country where most do not even have jobs in the organised sector.

The scheme would provide 8% return for 10 years. The scheme, similar to the Varishtha Pension Bima Yojana, is an immediate annuity plan and will be open for subscription for a period of one year from the date of launch.

If the return generated by LIC is less than 8%, the government will bear the difference as subsidy on an annual basis. While the details of the product are not yet known, it is likely to have an upper limit as there are fears that it could be abused by the wealthy otherwise.