Atal Pension Yojana is also known as APY Pension scheme this pension scheme is proposed by the Government of India to protect old age group and to make them financially independent. This scheme basically promotes old age income security in the country.
This pension scheme was launched in the 2015 financial year by Prime Minister Narendra Modi. This scheme is presented by finance minister Arun Jaitley in his 2015 budget speech. This scheme is launched in the honour of India’s Prime Minister Atal Bihari Vajpayee. Atal Bihari Vajpayee has served complete 5 years term as a leader of Bhartiya Janata Party (BJP). He holds Padma Vibhushan award as well as the India’s highest civilian honour Bharat Ratna.
PFRDA is a Pension Fund Regulatory and Development Authority it’s a pension regulator of India. PFRDA statutory body established by Government of India on August 2003. PFRDA is authorised by Ministry of Finance.
NPS, national pension scheme is being managed by the PFRDA it allows central government employees to have NPS. After 1st of May 2009 Government of India allowed all residents of India and NRI’s non residential of India to be a part of national pension scheme. Motive behind the foundation of PFRDA is to regulate the pension fund and protect interest rate of the subscriber.
What is Atal Pension Yojana?
API, Atal Pension Yojana is momentous guaranteed monthly pension scheme. This pension scheme gives Indian citizen monthly income when they are no longer earning which will be after the age of 60. This scheme is being administered by PFRDA through NPS.
If you’re concerned more about life after retirement then you need to start early investment along with pension plans. One may have multiple pension plans at the same time. If you’re new and want to start investing in pension plan with the small portion of money then APY is the best pension scheme to safeguard the future.
What is the Age Limit?
Atal Pension Yojana has defined the age limit. Person who is falling under the defined age bracket can only participate into the pension scheme. This age limit is in between 18 years to 40 years.
If your age comes in between 18 to 40 years then it’s best suitable for you to initiate pension plan. You will be entitled to get fixed pension if you start contributing to APY pension scheme in between 18 years to 40 years. Your contribution will solely depend upon your age group and your pension slab.
How much pension subscriber receive via APY?
So far, we have seen for is Atal Pension Yojana and when this scheme was launched its purpose and authority group of APY. After reading all these you might be enthusiast to know how much pension I will receive if I enrol the APY?
After the age of 60 you will receive the pension ranging 1000k to 5000k per month. This pension scheme also allows subscribers to decrease or increase the pension amount during the accumulation of the pension once a year.
What will be my Monthly Contribution?
Your monthly contribution in APY is solely depend on how much pension you want after the retirement. APY promises 1000 Rs/-, 2000 Rs/-, 3000 Rs/-, 4000 Rs/-, and 5000 Rs/- per month fixed pension.
You can start your contribution in between the age of 18 years to 40 years. Your premium depends upon the age. We’ve calculated how much premium one needs to pay with respect to the age groups. Below is the chart which indicates how much premium one should need to contribute on monthly basis.
|Your Age||Number of Years of Contribution||Monthly Contribution for 1000 Rs/- Per Month Pension||Monthly Contribution for 2000 Rs/- Per Month Pension||Monthly Contribution for 3000 Rs/- Per Month Pension||Monthly Contribution for 4000 Rs/- Per Month Pension||Monthly Contribution for 5000 Rs/- Per Month Pension|
Benefits of APY
- APY Gives guaranteed fixed pension to subscribers.
- APY scheme allows subscriber to start investing in pension with lowest amount
- APY scheme is governed by Central Government of India
- Spouse is entitled to receive pension upon the death of subscriber
- Nominee will get the money which subscriber had accumulated till the age of 60.
- If subscriber dies before the age of 60 then spouse is entitled to either continue or exit from the scheme. Upon continual spouse will get the same pension amount. If spouse decides to exit from the pension scheme then spouse will get the accumulated amount by the subscriber.
What are the Penalties if I miss to contribute?
- Penalties varies on the basis of your pension slab. However, 1% penalty if there’s any delay in the payment.
- There will be periodic based account maintenance charges being charged which will be nominal.
- If the account balance reached to ZERO upon deduction of account maintenance charges then pension account gets closed immediately.
- If subscriber unable to pay premium for next 6 months then account will get feezed. Account gets enabled upon paying premium charges and 1% of calculated penalty.
- If there’s continuity to pay premium for next 12 months then pension account gets closed immediately and accumulated amount credited back to the subscribers account.
How to Withdraw Pension from APY
Once you hit to the age of 60 years, you need to get in touch with post office or respective bank staff in order to submit request to initiate the pension.
In case of death of the subscriber before 60 years of age, spouse will be entitled to either continue with the contribution or spouse can accumulate money till the age of death.
If subscriber dies after the age of 60 then spouse is entitled to receive the pension amount. In case of both subscribers and spouse death then nominee is entitled to get the accumulated amount.
If you’re new to make investment and if you’re seriously concerned with your retirement plan then Atal Pension Yojana is the best pension scheme for you to start. APY pension scheme enables you to start making investment at the early age i.e. 18. From 18 years of age you can start your contribution. This is good pension scheme for the beginners. APY pension scheme is controlled by central government of India and this scheme gives guaranteed pension scheme. If you’re about to start then it’s APY scheme is best suited for you. This scheme will act as one of the core pension plan for your retirement from rest other subscribed plan.
if you are already subscribed this scheme then share your overall subscription experience with us. If you’re about to start APY pension scheme then feel free to post queries to us or reach out to us by filling contact us form.