Atal Pension Yojana: Upgrade APY account for monthly pension of Rs 5000 – Here’s how

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Updated: Apr 09, 2020 6:00 PM

Anyone between 18 and 40 years of age and having a savings account in a bank or a post office can enroll for APY.

 APY contribution, pension upgrade, APY pension scheme, APY calculator, APY scheme, APY scheme details, APY pension, APY account, APY chart, APY scheme benefits, guaranteed pension schemeAPY scheme benefits: Out of the total APY subscribers as on 31st March 2020, nearly 73 per cent subscribers have chosen Rs 1000 pension amount.

APY Pension Scheme: Even though the maximum pension every month that one gets from Atal Pension Yojana (APY) is Rs 5,000, it has been observed by PFRDA that out of the total subscribers as on 31st March 2020, nearly 73 per cent subscribers have chosen the Rs 1000 pension amount. If someone wants to upgrade the pension amount, there are ways to do it. So, someone saving for a monthly pension of Rs 1,000 or Rs 3,000 can upgrade or increase savings to get a monthly pension of Rs 5,000 from age 60.

Anyone between 18 and 40 years of age and having a savings account in a bank or a post office can enroll for APY. Depending on the age, one needs to save monthly, quarterly or half-yearly through the auto-debit facility till age 60 after which monthly pension will start. The pension is fixed and assured by the government for lifetime.

In case of an upgrade, one needs to intimate the bank by filling up a form and giving authorisation to the bank for the additional contribution to be paid for Upgraded pension account. One can also downgrade the pension amount by intimating the bank. Upgradation and downgrade can also be done online by visiting the NPS lite website.

One can upgrade or downgrade the APY pension account either online or offline. The upgrade or downgrade of pension under APY will be chargeable. Bank will charge Rs. 25 which will be paid by subscriber upfront to the bank while the CRA charges of Rs. 25 would be deducted from APY account. APY subscriber can upgrade or downgrade a pension amount once in a year.

APY chart – Contributions and corpus

In APY, there is a minimum guaranteed pension of Rs.1000 per month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000 per month.

As per the APY calculator, for entry age of 18 to 39, to get a minimum guaranteed pension of Rs. 1000 per month, the monthly contribution will be between Rs 42 and Rs 264. Irrespective of the entry age, The return of corpus to the nominees will be Rs 1.7 lakh.

Similarly, the APY calculator shows that for a minimum guaranteed pension of Rs. 2000 per month, the monthly contribution will be range between Rs 84 and Rs 528 for entry age of 18 to 39. The return of corpus to the nominees will be Rs 3.4 lakh, irrespective of the entry age.

For a minimum guaranteed pension of Rs. 3000 per month, the monthly contribution will be range between Rs 126 and Rs 792 for entry age of 18 to 39. The return of corpus to the nominees will be Rs 5.1 lakh, irrespective of the entry age.

For a minimum guaranteed pension of Rs. 4000 per month, the monthly contribution will be range between Rs 168 and Rs 1054 for entry age of 18 to 39. The return of corpus to the nominees will be Rs 6.8 lakh, irrespective of the entry age.

For a minimum guaranteed pension of Rs. 5000 per month, the monthly contribution will be range between Rs 210 and Rs 1318 for entry age of 18 to 39. The return of corpus to the nominees will be Rs 8.5 lakh, irrespective of the entry age.

The NPS Trust website has the APY calculator to help one calculate the tentative pension and lump Sum amount to expect on maturity or 60 years of age based on regular contributions.

As per the latest data shared by the government, out of total enrolments as on 31st March 2020, nearly 43 per cent are female subscribers. Also, out of the total enrollments, 67 per cent subscribers are enrolled between 18 and 30 years while 33 per cent subscribers are enrolled between 31 and 40 years.

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