The Atal Pension Yojana (APY) is an excellent pension policy designed and launched by the government for people who fall under the age group of 18-40 years. Regardless of the age of the user, whether he or she is entering the working world or anticipating the onset of retirement, this scheme offers a way of investing in a better future.
If you contribute ₹500 monthly, you could gain a pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 upon retirement at the age of 60. The amount depends on when one joins and also the amount that he or she is willing to contribute. The government contributes, reimbursing 50 % of your annual deposit up to ₹ 1000/- for five consecutive years.
APY Eligibility and Flexibility
To be eligible for APY, one has to be in the age range of 18 and 40 years with a savings account in an authorized bank branch or post office. However, there are some exceptions, especially for income taxpayers, or those who are under other forms of social security schemes, who will not get contributions from the government.
They also allow for adjustable deposits, which means that you can deposit funds in the company monthly, every quarter or every half a year. After organizing it, your bank or post office will take the rest of the process by making the deductions automatically. Easy, right?
APY Withdrawal
You begin receiving your guaranteed monthly pension when you are 60 years of age. If the member dies before the retirement age, the scheme ensures the nominee, most probably the spouse, is paid the pension benefits that have accrued. Early retirements are also possible on medical grounds especially for terminal illnesses but like to normal voluntary ones, they will not include the contribution by the government or interest.
Although there are a few cents penalty for failing to make the payment, and a couple of nominal fees, these costs are overshadowed by the gains in the long run. Do not delay in securing your future, invest in Atal Pension Yojana now, and your future self will be grateful!
Save monthly with the Atal Pension Yojana. Receive a fixed pension at retirement, with government contributions and easy deposit options. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
