Atal Pension Yojana (APY)

 Atal Pension Yojana benefits

Atal Pension Yojana (APY) Is A Pension Scheme Launched By The Government Of India For The Benefit Of Individuals, Especially Those Working In The Unorganised Sector. The Scheme Was Launched In 2015 And Replaced The Previously Launched Government Scheme, Swavalamban Yojana. The Underlining Objective Of This Scheme Is To Provide Social And Financial Security To People In Their Old Age By Enabling Them To Make Regular Savings During Their Productive Years.

Benefits of Atal Pension Yojana

As an individual, you will be entitled a guaranteed pension amount of ₹1000 – ₹2000 – ₹3000 – ₹4000 – ₹5000 on attaining the age of 60 years. In case of death of the subscriber, the pension amount will be given to the spouse or nominee.

Atal Pension Yojana Aims At Providing Minimum Guaranteed Monthly Pension After The Age Of 60 Years In Different Slabs Viz. Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 And Rs. 5,000. Apart From Workers In The Unorganised Sector For Which The Scheme Is Highly Beneficial, Employees From The Private Sector Can Also Apply For APY To Avail Its Numerous Advantages. The Pension Amount Will Be Fixed Depending On The Age Of The Subscriber And The Contribution Made By Him Or Her.

A Subscriber’s Spouse Is Entitled To Claim The Pension Amount Under The Atal Pension Yojana Upon His Or Her Death. The Spouse Have Two Options Before Them If A Subscriber Dies Before Completing The Age Of 60 Years – To Exit The Scheme And Claim The Entire Pension Amount Or Continue With The Scheme For The Remaining Period. In Case Of Death Of Both The Subscriber And The Spouse, The Accumulated Pension Amount Can Be Claimed By The Nominee. In Accordance With The Investment Pattern Set By The Government.

Benefits of Atal Pension Yojana

The Atal Pension Yojana Is An Excellent Saving Scheme For Individuals And Offers Ample Benefits At A Time When A Person’s Income-Earning Capacity Is Low. The Savings Made Through This Scheme Enables People To Deal With Rising Cost Of Living And Lead A Dignified Life Even After Retirement. Some Of The Advantages Of APY Are Given Below:

• The Subscribers Can Increase Their Premium As Per Their Choice And Can Look Forward To Huge Monthly Pension Amounts, Ranging Between Rs. 1,000 And Rs. 5,000, By Making Significant Contributions.
• Regular Updates Such As Status Of Contribution Are Provided To The Subscribers Via SMS Alerts And Physical Account Statement.
• The Account Is Portable And Will Be Linked To Bank Account So That The Subscriber Can Operate It From Anywhere In The Country.
• APY Is An Affordable Scheme And Is Available At Ultra-Low Cost And Investment Can Be As Low As Rs. 42 Per Month, Provided The Age At Entry Is 18 Years.
• It Is Regulated By PFRDA With Transparent Investment Norms. The Money Contributions Made By Subscribers Of APY Are Maintained Safely.

At The Time Of Investment, Individuals Can Claim Income Tax Benefit Of Up To Rs. 1.5 Lakh Under The Section 80C Of The Income Tax Act Of 1961. Moreover, They Can Also Avail Deductions Of Up To Rs. 50,000 Under Section 80CCD (1B).

Atal Pension Yojana Contribution Chart

Subscribers can make monthly contributions as per below given chart. They are also entitled for making contributions on quarterly and half-yearly basis.

Charges For Default Atal Pension Yojana

Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10/- per month as shown below:

• Re. 1 per month for contribution upto Rs. 100 per month.
• Re. 2 per month for contribution upto Rs. 101 to 500/- per month.
• Re 5 per month for contribution between Rs 501/- to 1000/- per month.
• Rs 10 per month for contribution beyond Rs 1001/- per month.
• The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber

Important information for subscriber:

Discontinuation of payments of contribution amount shall lead to following:

After 6 months account will be frozen.

After 12 months account will be deactivated.

After 24 months account will be closed.

Subscriber should ensure that the Bank account to be funded enough for auto debit of contribution amount.

Exit : Atal Pension Yojana

On Attaining The Age Of 60 Years:

The Exit From Atal Pension Yojana Is Permitted At The Age With 100% Annuitisation Of Pension Wealth. On Exit, Pension Would Be Available To The Subscriber.

In Case Of Death Of The Subscriber Due To Any Cause:

In Case Of Death Of Subscriber Pension Would Be Available To The Spouse And On The Death Of Both Of Them (Subscriber And Spouse), The Pension Corpus Would Be Returned To His Nominee.

Important Links : Atal Pension Yojana (APY)

• Atal Pension Form PDF :- Click Here
• Gujarati Information :- Click Here

Exit Before The Age Of 60 Years:

Exit Before 60 Years Of Age Is Not Permitted However It Is Permitted Only In Exceptional Circumstances, I.E., In The Event Of The Death Of Beneficiary Or Terminal Disease.

Gujarati Brochure Click Here