Is APY scheme beneficial?
The Atal Pension Yojana is one of the most beneficial social security schemes introduced by the Government in the year 2015-16. This is a beneficial, since it provides people with an assured minimum pension sum to meet their expenses after they turn 60 years of age.
What is the use of APY?
APY aims to help the unorganised sector workers save money for their old age while they are working and guarantees returns post-retirement. The maximum amount of pension offered in the scheme is Rs 5000.
What happens if APY subscriber dies?
Death benefits of Atal Pension Yojana (APY) The pension automatically vests in the spouse who is the default nominee upon the contributor’s death. Upon the subscriber’s death, his or her spouse is entitled to the same pension as the subscriber.
Is Atal pension good?
Hence, the APY works better than the other annuity options that you can buy from the market. For instance, for a corpus of Rs 8.5 lakh, the monthly pension provided by the most life insurers under this annuity option currently is around Rs 4,000, while APY assures Rs 5,000.
How do I claim APY contributions?
These contributions can be claimed under Section 80CCD (1B) of the Income Tax Act. As of 2018, the limit for income tax deduction Section 80CCD (1B) is Rs 50,000. This is over and above the Rs 1.5 lakh allowed under Section 80C.
How long will I get APY pension?
This co-contribution by the Government will hold good for a maximum of 5 years. You can get a fixed pension ranging from Rs. 1000 to a maximum of Rs. 5000/month by investing through this scheme.
What is vesting period in APY?
If the subscriber dies before the age of 60 years, his/her spouse would be given an option to continue contributing to APY Scheme, for the remaining vesting period, till the original subscriber would have attained the age of 60 years.
Can nominee be changed in APY?
The answer is yes. However, the more important question is how to change the nominee in Atal Pension Yojana. You can correct the nominee name under the section “Change/Correction in Nominee/Spouse Details.” Make the corrections to the following: Spouse name.