Senior citizens (60 and above) can invest a lump sum and choose to receive payouts monthly, quarterly, half-yearly, or annually, with the pension rate fixed at the time of purchase for the policy term — providing predictable, guaranteed income that doesn't fluctuate with market conditions, which is particularly valuable for retirees who prioritise stability over growth potential.
The scheme has historically been offered in tranches with specific enrolment windows rather than being permanently open for investment, and the guaranteed interest rate offered has varied between these tranches based on prevailing market conditions at the time each window was opened — so the terms available depend on when you're able to enrol, not a single fixed rate across all time.
It's generally considered alongside other senior citizen-focused options like the Senior Citizen Savings Scheme, with the right choice depending on factors like desired payout frequency, current interest rate comparisons between the schemes, and how much of a senior citizen's corpus they want locked into a single guaranteed-income product versus kept more flexible.