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What Are The Main Benefits Of The Atal Pension Yojana?

Published On Mar 10, 2022

The Atal Pension Yojana is for persons who desire to save a little amount of money for a set pension when they retire (mainly daily wage workers who are unable to save). People who work in the private sector and are not tax payers or members of any other social security plan are eligible to receive its benefits.

Features and Benefits of Atal Pension Yojana

The following are the benefits and features of the Atal Pension Yojana:

1. Feature to Increase Contribution

As previously stated, you are eligible to receive an Atal Pension Yojana pension once you reach the age of 60. The amount you contribute to this plan determines the size of your pension. Various contributions determine the amount of a pension. As a result, you may decide to make more payments in the future in order to get a larger pension. The Indian government permits the amount of corpus to be changed by increasing or decreasing the contribution facility. This service is only available once a year.

2. Automatic Debit

The automatic deduction feature is one of the best aspects of the Atal Pension Yojana. As a plan beneficiary, you can link your bank account to your Atal Pension Yojana account, and your monthly payment will be deducted directly from your account. The account that you link with your APY account should have a sufficient amount for automatic deduction falling which can carry a penalty.

3. Guaranteed Pension

The Atal Pension Yojana ensures a monthly payout of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, or Rs. 5000 to the relevant covered individual.

4. Withdrawal Procedure

After a beneficiary of an APY plan reaches the age of 60, they can annuitize the complete fund balance, which means they can obtain a monthly pension when the programme with their specific bank is ended. It is worth noting that an insured person can only leave the plan before turning 60 if they are diagnosed with a terminal disease or pass away. The spouse is entitled to the pension if the relevant partner dies before attaining the age of 60. The spouse has the option of receiving pension benefits or withdrawing funds from the APY in this situation. If an insured person leaves the Atal Pension Yojana before reaching the age of 60, they will only get their entire payments and interest earned.

5. Age Limit

This plan is available to anyone under the age of 40 who are at least 18 years old. As a result, college students can save for retirement by contributing to the Atal Pension Yojana. Furthermore, the maximum age limit for this programme is 40 years old. This will ensure that a person can donate for at least the next 20 years.

Take Away

The Pension Fund Regulatory and Development Authority (PFRDA) administers the Atal Pension Yojana, which is sponsored by the Indian government. The National Pension System's institutional architecture for enrolling new endorsers is the Atal Pension Yojana programme. PFRDA creates the account creation form and offer document for the Atal Pension Yojana plan. With these advantages, contributing to ensure that a pension is paid is a wise move. The Atal Pension Yojana offers basic terms and conditions that are easy to grasp by contributors.

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.

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