The 9th of May, 2015, Government of India launch one additional scheme called the Atal Pension Yojana (APY). The scheme was launch alongside Pradhan Mantri Jeevan Jyoti Bema Yojana (PMJJBY) along with Pradhan Mantri Suraksha Bhima Yojana (PMSBY). I have already discuss both schemes in my previous article. This time I will focus on the Atal Pension Yojana.
Recent Updates (20th August 2015)-Government altered some regulations of the APY.
- In addition to the payments per month, customers can make investments like the quarter-yearly, monthly, or even yearly.
- The account won’t be close and deactivate until the balance of the account with self-contributions less the government’s co-contributions reach zero because of the deduction of account maintenance costs and charges.
- The penalty for late payment is also reduce to Rs . 1 per month, which is a payment of just Rs. 100 per month that is delay, instead of various slabs offer previously.
- The ability to withdraw early is now available subject to certain conditions. The subscriber is only reimbursed for the contributions made through APY in addition to the actual interest earn from the contributions.
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A few more updates via notice that was sent on 29th April, 2016. The information is as follows.
“If the subscriber passes away before the age of 60 then the spouse of the subscriber will be given the option of contribute to the APY subscription of subscriber that can be kept under the name of the spouse for the duration of the renaming vesting and up to the time that the original subscriber has reach 60 years of age. A spouse who is a subscriber would have the right to receive the same amount of pension as the subscriber up to the time of passing away of their spouse”. Retirement planning is among the main objectives that can be achieve through Financial Planning. But, unfortunately, very few people have plans to plan for it. The reasons for this are numerous. The main causes are – Negligence and the absence of a distinctive or the best pension plan. In the past few years the government launch the New Pension Scheme (NPS). But, it hasn’t gain the same amount of popularity as expect. Yet another pension plan was launch by the government.
How much pension you can get?
The buzzword that might entice you with this scheme, is GUARANTEE PENSION. This scheme provides you with the lowest guarantee retirement of 1,000 rupees. 1,000, Rs. 2,000, Rs. 3,000, Rs.4, 000 or Rs.5 1,000 per month. The pension begins when you reach the age of 60 year sold, contingent on the contribution made by subscribers.
Who is eligible to invest to participate in the scheme?
Here are the eligibility requirements to invest in this scheme.
- Age must be between 18-40 years of age.
- You need to have an Savings Bank Account.
- You must be the owner of a mobile. The number you give during registration.
How much will the government provide for this program?
The government is also expect to contribute 50 percent of the total contribution or Rs.1 1,000 per year, or less during the five years i.e. from 2015-16 until 2019-20. For the Government contributions, you need to join the scheme from 1st June 2015 until the 31st of December, 2015.
Be aware that this Government contribution will not be made available to INCOME TX PAYERS or those who are members of schemes such as
- Employers’ Provident Fund and Miscellaneous Provision Act of 1952 (EPF)
- The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948
- Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955
- Seamen’s’ Provident Fund Act, 1966
- Jammu Kashmir Employees’ Provident Fund and Miscellaneous Provision Act in 1961.
- Other social security statutory schemes.
Who is the person who manages this scheme?
The scheme is manage by PFRDA and the Government.
How can you make an investment into this plan?
- Visit the branch of your bank where you have an account with a savings.
- Fill out the APY Registration Formula.
- Offer Aadhaar or mobile number.
- You must ensure that you have enough money in your savings account to enable the monthly transfer. Since your monthly investment under this scheme will be via an auto-debit facility.