A Complete Guide To Atal Pension Yojana
Updated On Jan 31, 2022
Table of Contents
The Atal Pension Yojana is a pension system that aims to provide pensions and benefits to the unorganised sector, that employs a large section of the workers in India. The Swavalamban Yojana, which had few applications since it did not promise pension payments at the age of 60, was replaced with this plan. The purpose of the Atal Pension Yojana is to provide social protection to the elderly, especially the poor and needy.
Unlike the Swavalamban Yojana, this plan assures returns during retirement or at the end of the policy's term. These benefits are available to all private sector employees, as well as non-taxpayers and users of any pension scheme. In order to gain enhanced pensions and benefits for themselves and their families, all qualified family members can join this pension programme in their own names. To know and understand more about Atal Pension Yojana, read on.
What Are The Features Of Atal Pension Yojana?
Following are the listed features of Atal Pension Yojana -
1. Death Benefits
The spouse of a contributor receives the Atal Pension Yojana death benefits. Whenever a contributor dies, the pension is automatically transferred to the spouse who has been designated as the default nominee. In the event of the contributor's and spouse's deaths, the nominee will receive the predetermined fund amount for the relevant pension slab. If a contributor passes prior to reaching the age of 60, his or her spouse can choose to keep the Atal Pension Yojana account open and receive benefits, or close it and collect the contributions and profits.
2. Withdrawal Procedure
When a beneficiary of an APY plan attains the age of 60, they can annuitize the full fund balance, which implies they can receive a monthly pension when the scheme for their specific bank is terminated. It's worth mentioning that an insured person can only exit the plan before reaching the age of 60 if they are diagnosed with a terminal illness or die. If the husband or wife passes before attaining the age of 60, the spouse is eligible for the pension. In this instance, the spouse has the option of collecting pension payments or withdrawing the funds from the APY. If an insured person withdraws from the Atal Pension Yojana prior to reaching the age of 60, individuals will only receive their total payments and earned interest.
3. Age Limit
Individuals under the age of 40 being over the age of 18 are permitted to enrol in this plan. As a result, college students might contribute to the Atal Pension Yojana to develop retirement savings. In addition, the maximum age for this scheme is set at 40 years old. This will guarantee that you donate for at least 20 years.
4. Automatic Debit
The automated deduction system is one of the most useful aspects of the Atal Pension Yojana. As a plan beneficiary, an individual may connect their bank account with their Atal Pension Yojana account, and their payment amount will be deducted straight from their account. To avoid automatic decrease, which might also result in a penalty, individuals must have adequate quantities in the account connected to their APY account.
5. Atal Pension Yojana Funding
The Government of India offers endorsers who pay 50% of the entire extra sum each year a guaranteed fixed pension. Benefits of promotional and developmental initiatives, as well as incentives for creating contribution collection businesses.
The Atal Pension Yojana is a pension system that aims to provide a stable income to the working poor once they retire. The APY scheme is the National Pension System's institutional architecture for enlisting new endorsers. PFRDA creates the account creation form and offer document for the Atal Pension Yojana scheme. People are encouraged to save enough for their retirement under the Atal Pension Yojana scheme.
Also read- Step By Step Approach To Retirement Planning
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.