Retirement is not an optional one but compulsory in every one’s life. With a proper planning and investment one can make his old age as a haven. In making the way to haven pension income is playing an important role. So far we know that pension income is only possible to the employees of an organised sectors. Now, after introducing various schemes by Govt. of India, all the Indian citizens can create their pension plans by themselves.

An Indian citizen can open their APY account (Atal Pension Yojana) in between the age of 18 years to 40 years.

Key Highlights

Under the APY, there is a guaranteed (By Govt. of India) minimum monthly pension for the subscribers ranging between Rs. 1000 and Rs. 5000 per month.

Govt. of India will also co-contribute 50% of the subscriber’s contribution but to the maximum of Rs.1000 per annum. Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not income tax payer.

How to Subscribe for APY

The applicant can approach any bank in which they are maintaining account to avail the service and making their monthly contributions.

Important Points to be considered

Discontinuation of payments of contribution amount shall lead to following :

• After 6 months account will be frozen.

• After 12 months account will be deactivated.

• After 24 months account will be closed.

Subscriber should ensure that the Bank account to be funded enough for auto debit of contribution amount.

Maturity

After attaining the age of 60 years the beneficiary can enjoy the benefit of monthly pension as they planned. It is not possible to exit the plan before the age of 60 unless any uncertainty like death or terminal disease.

In case of death of subscriber, 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.

Contribution

The monthly contribution is varies depends on the age of entry and amount of pension scheme subscribed for. The same as detailed below for the better reference.