About APY
The Government of India introduced the Atal Pension Yojana (APY), a pension scheme focusing on the unorganized sector of the country. APY can be joined by individuals who are having a bank account, and who are non- tax payers, thereby enabling all citizens in the unorganized sector the benefit of minimum pension guaranteed by the Government of India. It is a defined benefit scheme and guarantees you a minimum pension of ₹1000, ₹2000, ₹3000, ₹4000 or ₹5000 every month, depending on your contributions.
The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, the minimum period of contribution by any subscriber under APY would be 20 years or more.
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Benefits
The benefit of minimum pension is guaranteed by the Government of India. For the minimum guaranteed pension, In case the actual realized returns on the pension contributions are less than the assumed returns, the shortfall is funded by the Government of India. On the other hand, in case the actual realized returns on the pension contributions are higher than the assumed returns, such higher scheme benefit shall be passed on to the subscribers
You can choose the minimum pension amount from the 5 slabs available, i.e, Rs.1000, 2000, 3000, 4000, 5000/-
The monthly contribution is done through auto-debit from your bank account hassle free without the subscribers need to visit the branch.
On unfortunate demise of the subscriber, the spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of the spouse.
After the demise of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till age 60 of the subscriber.
Features of APY
- Investment pattern under APY
- Upgrade / Downgrade of Pension Amount
- Pension Funds Managing APY
- Non-payment of Contribution to APY
The amount collected under APY shall be invested as per the investment pattern specified by the Central Government from time to time. Hence, the subscribers will not have the option to choose investment pattern or the pension fund.
APY subscribers can upgrade/downgrade their pension amount throughout the year by submitting “APY Subscriber Modification Form” to APY SP branch. This feature enables the user to check the differential amount to be deposited/ to be received back as per the new guaranteed pension amount chosen. The Differential amount needs to be deposited in case of upgrade and differential amount would be returned to the subscribers in case of down grade. The corresponding contribution is to be paid based on current age and difference in pension amount. In this process, no lump-sum differential amount is required to be deposited
The APY scheme is presently managed by 3 Pension Funds – SBI Pension Fund, LIC Pension Fund, UTI Pension Fund Limited.
The NPS Swavalamban scheme is managed by 4 Pension Funds - SBI Pension Fund, LIC Pension Fund, UTI Pension Fund Limited, Kotak Pension Fund
- On 6 months of non-payment of contribution, APY account will be frozen
- On 12 months of non-payment of contribution, APY account will be deactivated
- Automatic closure of the APY account after 24 months of non-payment of contribution
- The Bank can recover the due amount any time until the last day of that month. Funds can be recovered as and when there are funds in the APY-linked bank account and at any point of time during the month.
Pension Calculator
This APY calculator illustrates the tentative pension amount that the APY subscriber may expect on maturity or 60 years of age. The calculation is based on regular monthly contributions, expected return on investment, annuity rate etc
Calculate NowEligibility
For opening of APY account, subscriber should be a citizen of India. The Subscriber’s age should be between 18 and 40 years. Any citizen who is or has been an income-tax payer (under Income Tax Act,1961), shall not be eligible to join APY from 1St October 2022.
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Exit and Withdraw
On attaining the age of 60 years
The exit from APY is permitted at the age with 100% annuitisation of pension wealth. On exit, pension would be available to the subscriber.
Exit Before the age of 60 Years
Exit before 60 years of age is not permitted however it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.
In case of death of the Subscriber
In case of death of subscriber due to any cause pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.