New Delhi: The Atal Pension Yojana (APY) formerly called the Swavalamban Yojana is a pension scheme backed by the government and it primarily focuses on the unorganised sector. Prime Minister Narendra Modi launched it on May 9, 2015. It encourages eligible beneficiaries to make monthly contributions to secure their lives after retirement. In this article, we will take a look at the withdrawal rules of the Atal Pension Yojana.
What are the withdrawal rules of the Atal Pension Yojana?
According to the guidelines of the Atal Pension Yojana (APY), a subscriber can exit from APY after completing 60 years and avail of the pension. Moreover, there are some situations where exit from APY is possible before the subscriber reaches 60 years of age.
Exit if the subscriber dies
If the subscriber passes away before reaching the age of 60, then the following scenarios will come into play:
APY account closure: If the spouse wants to exit from APY and decides to close the account, in the name of the spouse the entire corpus will be settled. If the subscriber is unmarried, or divorced, or if the spouse is dead, then in the nominee’s name the corpus will be settled.
APY account continuation: Only the spouse can continue to contribute to the subscriber’s APY account. In the name of the spouse, the account can be maintained till the time the original subscriber would have turned 60. The spouse, till death, will get a pension amount which would be the same as the subscriber would have got.
Premature exit before 60 years of age
Exit because of certain illness: One can exit the APY before turning 60 in certain situations due to a specified illness of the subscriber. The corpus accumulated in the account of the subscriber will be returned to the person.
Voluntary exit: If a subscriber opts for voluntary exit from APY before turning 60, the person will be refunded whatever contributions he or she made to the APY along with the returns after the account maintenance is deducted along with the investment management charges. If there is any contribution of the government, the subscriber won’t get the accrued income earned on the government’s co-contribution.
According to the guidelines of the Atal Pension Yojana (APY), a subscriber can exit from APY after completing 60 years and avail of the pension. Moreover, there are certain conditions where early exit from APY may happen before the subscriber becomes a senior citizen. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
