INTRODUCTION OF APY :
Atal Pension Yojana (APY), a pension Plan offered by Govt of India for citizens of India focuses on the unorganized sector workers. Under this scheme, a guaranteed minimum pension amount of Rs. 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month will be provided at the age of 60 years depending on the contributions by the citizen. Any person of India age group between 18-40 years can join the APY scheme.
Why pension income is important:
When people have no source of income in old age this type of pension scheme will help them and support them financially.
When income decreases as time passes and people grow old.
When families become divided into nuclear families.
When cost of living increases
BASIC INFORMATION RELATED TO APY
The age of a subscriber should be between 18 – 40 years.He or She should have a savings bank account in any bank.The subscriber should provide a valid mobile number,Adhar number ,Pan number.However, Aadhaar is not mandatory for opening APY scheme.
The Atal Pension Yojna (APY) works as a tool and as a support system for individuals planning for financial security during their retirement years. This govt scheme ensures financial security by providing pension after retirement.This scheme will ensure support in your golden years.
Eligibility Criteria
To enroll in the Atal Pension Yojna, individuals must meet specific criteria. The scheme is open to citizens of India within an age group from 18-40 age range.
Enrollment Process
Availing an APY scheme is very easy by visiting any designated Bank branch by providing valid ID and address proof.
Contribution Levels and Periods
The scheme provides flexibility of choosing contribution amount
Beneficiary Details
The APY scheme provides extended benefits to spouses and nominees and it’s very easy to update the details .
Pension Amount Calculation
Calculating the pension amount involves considering multiple factors.
Government Contribution
One important feature of APY is the government’s contribution towards the scheme, providing extra financial support to the contributor. However, for availing these benefits one should meet some certain conditions.
Withdrawal Rules and Exit Strategies
Premature withdrawal in the APY scheme is possible under certain conditions.
Monitoring and Accessibility
In this digital era APY provides online access to account details such as monitor contributions,statement checking and updates etc.
Under APY scheme the amount of pension is guaranteed by govt.Govt will support the contributor under any circumstances.If the returns will be less than govt will fill the gap so that the beneficiary gets the full pension amount.Govt contributes 50% of the total contribution from the subscriber end.
HOW TO OPEN A APY ACCOUNT
To open a APY account you much visit you bank where you have hold a savings Bank account.After that filled the APY application form.Required documents are Adhar, Voter Card and Pan card.After opening the APY account you must ensures to keep the required balance to contribute APY scheme.
HOW TO WITHDRAW
· On attaining age of 60 :- After completion of 60 years the applicant should visit bank branch or to associate banks for drawing the pension to their account
· In case of death of the subscriber due to any cause after the age of 60 :- In case of death of the subscriber nominee is eligible to avail the pension .Nominee should visit the associate bank with death certificate to avail the pension amount.
· Exit before the age of 60 :- If a subscriber wants to exit voluntarily before the age of 60 then he is not eligible for the govt contribution towards APY .
· Death of subscriber before age of 60 :-In case of death of the subscriber nominee is eligible to avail the pension amount.However nominee can also continue towards APY contribution.Here the nominee is eligible to get the same pension amount.
IMPORTANT POINTS
OTHER IMPORTANT FACTS
· It is mandatory to provide nominee details in APY scheme. For married contributors, spouses will be nominees by default. People who are unmarried can provide their parents as a nominee.
· One person can open only one APY account. One can not open multiple accounts.
· A subscriber can increase and decrease the pension amount once in a year.
· Subscriber will get information about their APY balance in the account,contribution credit etc through sms.Also people will received physical statement once in a year
· The contribution will debit automatically from the linked savings account of the subscriber.
· The scheme is open for Indian citizens only.
· The subscriber can change the mode of payment (monthly/quarterly/half yearly) of auto debit facility once in a year in the month of APRIL.
Conclusion
In conclusion we can say that APY is a great tool to support your golden age financially.It ensures stable and secure future as it is supported by govt
Frequently Asked Questions (FAQs)
Q1: Can I enroll in APY if I’m already covered by another pension scheme?
A: Yes, individuals can enroll in APY even if they are covered by another pension scheme.
Q2: Is there a provision for changing the nominee during the tenure of the scheme?
A: Yes, APY allows for the easy updating of nominee details.
Q3: What happens if I miss a monthly contribution?
A: Missing a monthly contribution may attract penalties, and consistent non-payment may lead to the suspension of the account.
Q4: Can I increase or decrease my contribution amount during the tenure of the scheme?
A: Yes, individuals can modify their contribution levels, but it must align with the prescribed slabs.
Q5: How is the pension amount calculated under APY?
A: The pension amount is calculated based on the age of entry, the contribution period, and the chosen pension amount.
