APY: Atal Pension Yojana is a guaranteed pension scheme run by the government. Under this, the depositor gets a pension ranging from Rs 1,000 to Rs 5,000. You get three types of options to invest in this scheme.
This investment can be done monthly, quarterly or half-yearly. If you want to withdraw its money, then you can withdraw it through the methods mentioned here.
1. Atal Pension Yojana (APY) is a special pension scheme for the citizens of India, in which anyone can invest for retirement. Under APY, a minimum pension of Rs 1,000 or 2,000 or 3000 or 4000 or 5000 per month is guaranteed at the age of 60 years depending on the contribution made by the subscribers.
After 60 years of age- On completion of 60 years, the subscriber will submit a request to the concerned bank to receive Guaranteed Minimum Monthly Pension or Higher Monthly Pension, if the investment returns are more than the Guaranteed Returns embedded in APY.
On death of the subscriber, an equal amount of monthly pension is given to the spouse (default nominee). On the death of both the nominee subscriber and the spouse, the accumulated pension wealth is returned till the age of 60 years.
In case of death of subscriber due to any reason after 60 years- In case of death of subscriber, the pension will be given to the spouse and on the death of both of them (subscriber and spouse), the pension will be given to the subscriber till the age of 60 years. The pension amount deposited till the age will be returned to the nominee.
Exit before 60 years: Exit from the scheme before 60 years is not allowed. This can be permitted by PFRDA only in exceptional circumstances. That is, there is no provision for pre-mature exit in case of death or terminal illness etc. of the beneficiary.
On death of the subscriber before 60 years: Entire amount accumulated under APY will be returned to the spouse/nominee. However, pension will not be payable to the spouse/nominee. The government started NPS in 2004 for government employees.
