Securing Your Future ! Now Govt is giving guaranteed pension to all citizens of India up to 5000 rupees. Click here to know more on the details and avail it 😍
Securing Your Future ! Now Govt is giving guaranteed pension to all citizens of India up to 5000 rupees. Click here to know more on the details and avail it 😍
Introduction:
In this era, having a retirement plan is how much of beneficial, that you can only know, I don't have to say. Govt. had discontinued the pension structure which was there earlier for govt. servants. And, if someone was working in unorganised sector, you know that they were not get any pension from any organisation.
When you are young, it is evident that you can make some or other arrangements to do any type of work, and you can manage your family. When those kids will grow, they will go outside to look for jobs or business and will get settled somewhere after marriage due to various reasons. So, if you don't have any sort of pension, then you will just be dependent upon your child/children for any kind of expenses since you won't be in a situation to do any kind of work and people also won't give you much of work even though if you want.
So, in these kind of situations, one thing that will help is a retirement plan. Having a retirement plan in old-age is kind of having a child near you and giving you money for your expenses. Securing your future and financial stability in your life is very very crucial and essential.
So, there are are many retirement or pension plans in India. Today, we are going to pick up a retirement plan which is for everyone, from any category and very very less premium and govt backed.
The plan is Atal Pension Yojana (APY) is a government-backed scheme in India that aims to provide pension benefits to all citizens, especially beneficial for those in the unorganised sectors and it was previously known as Swavalamban Yojana.
This was announced back in 2015-2016 central budget. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS architecture
Table of Contents
- Inclusive for All
- Affordable Contribution Levels
- Guaranteed Pension for Life
- Government Contribution and Tax Benefits
- Portability and Flexibility
- Long-term Financial Security
- Charges for defaulter
- Important information for subscriber
- Exit Process
- Conclusion
Let's explore the significance and features of the Atal Pension Yojana and how it can benefit every individuals in India.
Inclusive for All:
This is a very very unique initiative and scheme due to its inclusive nature. Any individual between the ages of 18 and 40 are eligible and can start investing in APY, which is like a vast population in India.
Anyone within this age bracket, regardless of their profession or income level, can enrol themselves to get the benefits offered by the scheme.
Aadhar will be the primary KYC and Aadhar number and mobile number are recommended to be submitted.
Affordable Contribution Levels
One of the most remarkable aspects of the APY is its affordability. This scheme offers different contribution levels based on an individual's capacity to invest, making it possible for a wide range of population.
The monthly contributions can be as low as Rs. 42 and can go up to Rs. 1,454, depending on the desired pension amount and the age at which the person joins the scheme.
Guaranteed Pension for Life
Individuals secure themselves by a regular pension income for their entire lifetime by enrolling in the APY scheme.
The guaranteed minimum pension amount ranges from Rs. 1,000 to Rs. 5,000 per month, depending on the contribution made and the age at which one joins the scheme. Meaning it will bring financial independence, reducing the burden on family members and loved ones.
The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA).
Indicative Monthly Contribution Chart
Government Contribution and Tax Benefits
To encourage vast participation, the Indian government provides a co-contribution to eligible individuals who join the APY. Under this scheme, the government contributes 50% of the total contribution or Rs. 1,000 per year (whichever is lower), for a period of 5 years for all new subscribers who joined between 2015 and 2020. Additionally, contributions made towards the Atal Pension Yojana are eligible for tax benefits under section 80CCD of the Income Tax Act.
Government does the contribution only for those who are not covered by any Statutory Social Security Schemes and is not income tax payer.
Portability and Flexibility
The Atal Pension Yojana offers flexibility and portability to its subscribers. If an individual relocates to a different state, their account remains valid and can be accessed from any location across the country. Moreover, subscribers have the flexibility to increase or decrease their monthly contributions based on their financial situation.
Long-term Financial Security
The APY provides a comprehensive solution for long-term financial security by encouraging individuals to save for their retirement systematically. With a focus on ensuring a dignified post-retirement life, the scheme guarantees a steady income stream that can help individuals meet their basic needs and maintain their standard of living even after they stop working.
Charges for Defaulter:
Banks are required to collect additional amount as charge fee for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10/- per month as shown below:
Rs 1 per month for contribution up to Rs. 100 per month.
Rs 2 per month for contribution up to Rs. 101 to 500/- per month.
Rs 5 per month for contribution between Rs 501/- to 1000/- per month.
Rs 10 per month for contribution beyond Rs 1001/- per month.
The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.
Important information for Subscriber:
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.
Exit Process:
On attaining the age of 60 years: The exit from APY is permitted at the age with 100% annuity of pension wealth. On exit, pension would be available to the subscriber. In case of death of the Subscriber due to any cause: 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.
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.
Conclusion
The Atal Pension Yojana is a game-changer for securing the future of every individual, irrespective of their socio-economic background or profession.
Joining in the Atal Pension Yojana as retirement plan is a wise financial decision that brings self-reliance and independence. Remember, it's never too early to start planning. So start today !!
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