Did you sign up for the Atal Pension Yojana with a smaller goal in mind, for instance Rs 2,000, but aim for more now? No worries, you are not stuck with it and can opt for the maximum of Rs 5,000.
The Atal Pension Yojana is government’s flagship pension scheme that aims to provide the country’s unorganised workforce with a safety net by guaranteeing them with a fixed monthly pension of up to Rs 5,000 when they turn 60 years old.
The scheme is open to all citizens from 18 to 40 years of age with a strong focus on informal sector workers who usually lack the access to more organized retirement benefits. The scheme launched with an aim of financial inclusion where workers can choose to contribute monthly, quarterly or even half yearly, and the amount is determined based on the pension target and the subscriber's age at the joining time.
The pension bands available under the scheme are Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 and Rs 5,000 per month. Naturally, the earlier one joins, the lower the contribution required, thanks to the power of long-term savings.
Now comes the question, what if someone opted for a lower pension bracket initially but wants to maximise it now?
One can easily switch to a larger pension bracket as this scheme gives subscribers the flexibility to revise their target. According to the pension fund regulatory and development authority ( PFRDA ), a subscriber is allowed to increase or decrease their pension amount once every financial year during the accumulation phase or before turning 60. This means someone who started with a Rs 2,000 pension can indeed switch to Rs 5,000, provided they’re still within the contribution window and adjust their payments accordingly, according to ET.
How to know about the status of the scheme?
APY members receive SMS alerts on their registered mobile number and can also access real-time updates via the APY mobile app to monitor their contributions and account status. Additionally, they also receive a physical statement once a year.
What will happen if the savings account does not have enough funds for the contribution on the due date?
In case of insufficient funds in the linked savings account, the contribution is marked as a default. The subscriber is then required to make the missed payment in the following month along with overdue interest. If contributions continue to be missed, the account won't close, but maintenance charges will keep getting deducted until the balance is exhausted.
However, subscribers can revive their accounts anytime by clearing their dues.
How is the money contributed invested in APY?
Contributions made under the Atal Pension Yojana are invested according to guidelines set by the pension fund regulatory and development authority (PFRDA). These funds are managed by authorised pension fund managers such as SBI Pension Fund Pvt. Ltd, LIC Pension Fund Ltd, and UTI Retirement Solutions Ltd.
The Atal Pension Yojana is government’s flagship pension scheme that aims to provide the country’s unorganised workforce with a safety net by guaranteeing them with a fixed monthly pension of up to Rs 5,000 when they turn 60 years old.
The scheme is open to all citizens from 18 to 40 years of age with a strong focus on informal sector workers who usually lack the access to more organized retirement benefits. The scheme launched with an aim of financial inclusion where workers can choose to contribute monthly, quarterly or even half yearly, and the amount is determined based on the pension target and the subscriber's age at the joining time.
The pension bands available under the scheme are Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 and Rs 5,000 per month. Naturally, the earlier one joins, the lower the contribution required, thanks to the power of long-term savings.
Now comes the question, what if someone opted for a lower pension bracket initially but wants to maximise it now?
One can easily switch to a larger pension bracket as this scheme gives subscribers the flexibility to revise their target. According to the pension fund regulatory and development authority ( PFRDA ), a subscriber is allowed to increase or decrease their pension amount once every financial year during the accumulation phase or before turning 60. This means someone who started with a Rs 2,000 pension can indeed switch to Rs 5,000, provided they’re still within the contribution window and adjust their payments accordingly, according to ET.
How to know about the status of the scheme?
APY members receive SMS alerts on their registered mobile number and can also access real-time updates via the APY mobile app to monitor their contributions and account status. Additionally, they also receive a physical statement once a year.
What will happen if the savings account does not have enough funds for the contribution on the due date?
In case of insufficient funds in the linked savings account, the contribution is marked as a default. The subscriber is then required to make the missed payment in the following month along with overdue interest. If contributions continue to be missed, the account won't close, but maintenance charges will keep getting deducted until the balance is exhausted.
However, subscribers can revive their accounts anytime by clearing their dues.
How is the money contributed invested in APY?
Contributions made under the Atal Pension Yojana are invested according to guidelines set by the pension fund regulatory and development authority (PFRDA). These funds are managed by authorised pension fund managers such as SBI Pension Fund Pvt. Ltd, LIC Pension Fund Ltd, and UTI Retirement Solutions Ltd.
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