BEST PENSION SCHEME BY GOI - ATAL PENSION YOJANA

Every one of us is exetremely concerned about the old age income which secure our financial future and protect us from any uncertainties at that age. our health status will also not allow us to earn income to fulfill our needs. So, we have to plan for our pension or old age income, when we have enough cash flow in our pockets. 

In india, there are so many financial agencies are providing pension schemes linked with insurance or other add on product. But the cost of premium is very high for proposed pension after 60 years of age and that too, we are lacking of certainty in choosing of the scheme which is better in premium / coverage / pension. 

To overcome this scheme ambiguity and high premium amounts, Government of India introduced an universal pension plan for all indian citizens in the organised and unorganised sectors. i.e.,

ATAL PENSION YOJANA

Who can join this scheme?

 An indian aged between 18 to 40 years, having a savings bank account at any bank, can join APY scheme.

What is the contribution period?

Minimum period of contribution by the subscriber under APY would be 20 years or more

What is the contribution amount?

Govt of India has released chart of contribution based on age and pension. we can opt for monthly / quarterly / half yearly contribtion.

The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in year during the month of April. 

Monthly contribution will be recovered on FIFO basis- earliest due installment will recovered first along with the fixed amount of charges

Procedure to open APY account?

 Approach the bank branch where you are maintaining your savings account and Fill up the APY registration form. Please enclose your Aadhaar card and Mobile Number. Ensure keeping the required balance in the savings bank account for transfer of monthly contribution. 

Once your enrollment was done, they will provide with an acknowledgement slip with your PRAN (Permanent Retirement Account Number) details.

How much pension / old age income will get after 60?

The subscribers can opt for a monthly pension from Rs. 1000 - Rs. 5000. based on this pension amount, contribution per month will be decided.

what is the penalty in case of default in contribution?

In case of default in contribution, the penalty amount is:

• Rs. 1 per month for contribution upto Rs. 100 per month.

• Rs. 2 per month for contribution upto Rs. 101 to 500/- per month.

• Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.

• Rs. 10 per month for contribution beyond Rs 1001/- per month.

In case of repeated defaults for specified period, the account is liable for foreclosure.

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

How will we know our contribution is crediting to our PRAN only?

Periodical information to the subscribers regarding balance in the account,

contribution credits etc. will be intimated to APY subscribers by way of SMS alerts and you can check it online CLICK HERE to know your APY balance.

When will we recieve monthly pension?

Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed monthly pension.

Can we exit before 60 years of age?

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. 

In case of death, what will we get?

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 (Approx 1.70

Lacs to 8.50 Lacs).

Other important points:

1. A subscriber can open only one APY account and it is unique. 

2. More than one monthly contribution can be recovered in month subject to availability of the funds. Monthly contribution will be recovered along with the monthly fixed due amount, if any. In all cases, the contribution is to be recovered along with the fixed charges

3.Also any false declaration about his/her eligibility for benefits under this scheme for whatsoever reason, the entire government contribution shall be forfeited along with the penal interest. 

Read: Sukanya Samridhi Yojana Scheme

i think that i covered all important things about APY scheme and cleared off your doubts. So what you waiting for, go and get your APY account and start savings from today.

if you feel that it is helpful, please share with your friends and colleagues.

Please post your suggestions or queries in comments below.