The LIC Atal Pension Yojana is a pension program that aims to provide pension benefits to the unorganized sector, which employs a sizable share of the country's workforce. However, the Swavalamban Yojana had got few applicants because it did not guarantee pension payments at the age of 60.
The Atal Pension Yojana's investment aims to provide social security to the elderly, especially the poor and indigent.
Unlike the Swavalamban Yojana, this plan assures returns during retirement time or at the end of the policy's term. Moreover, these benefits are available to all individuals working in the private sector, as well as non-taxpayers and members of any social security scheme.
All eligible family members can join this pension system in their names to get enhanced pension benefits for themselves and their families.
Characteristics of Atal Pension Yojana LIC
- The minimum investment amount for the Atal Pension Yojana varies depending on the investor's age and pension plan. For example, if a 25-year-old subscriber desires a monthly pension of INR 3000 in retirement, the monthly contribution they must make now is INR 347.
- The maximum investment also varies depending on the investor's age and select pension plan.
- Investors have the option of varying the frequency of their donations. It can be done monthly, quarterly, or semi-annually.
- Investors contributing to the Atal Pension Yojana are entitled to guaranteed pension payment. The fixed pension amount that the investor desires to earn post-retirement can be INR 1,000, INR 2,000, INR 3,000, INR 4,000, or INR 5,000.
- An investment term is the length of time that investors must contribute to the program. It is determined by when the investment begins the APY scheme.
- For monthly contributions, APY provides an auto-debit option. You can link your bank account and have your monthly contributions deducted automatically. In order to avoid penalties, one must also ensure that the bank account has a sufficient balance.
- With the Atal Pension Yojana, one can begin earning a pension when they reach the age of 60.
- When the account holder dies, the account holder's spouse is entitled to a pension. The nominee will also benefit from the Atal Pension Scheme.
- Contributions to the Atal Pension Yojana are tax deductible under Section 80CCD (1). The maximum exemption is 10% of the individual's gross total income (limit INR 1,50,000). Moreover, Section 80CCD allows for an extra exemption of INR 50,000.
Eligibility of the Atal Pension Yojana in LIC
To open a LIC Pension Fund Scheme Atal Pension Yojana account, you must meet the following qualifying requirements:
- Should be an Indian citizen
- The entry age is 18 years old. The maximum age for admission is 40 years.
- The contribution period should be at least 20 years long.
- Furthermore, an Aadhaar Number and a cellphone number are required.
- A valid bank account is required.
- Individuals covered by the Swavalamban Yojana will also be automatically moved to the Atal Pension Yojana scheme.
How Can I Apply for the Atal Pension Yojana LIC Online?
APY programs are available at LIC. As a result, by simply visiting the nearest office, one can open an APY account. The following procedures will assist you in investing in the Atal Pension Yojana LIC of India:
- Fill out and return the APY registration form to your nearest LIC corp. APY forms are accessible in the bank as well as online. In addition, the forms are available in English, Hindi, Telugu, Tamil, Kannada, Bangla, Gujarati, Marathi, and Odia.
- Please include your phone number, bank account number, and Aadhaar number.
- Please include a photocopy of your Aadhaar card.
- The initial contribution (investment amount) will be debited from the associated bank account at the time of account opening.
- The bank must provide an acknowledgement number or a PRAN number.
- All subsequent monthly contributions will be deducted automatically from the bank account.
- Once the application is approved, a confirmation message is delivered to the mobile number.
Benefits of the LIC Atal Pension Yojana
- It offers a pension of Rs. 1000 to Rs. 5000 to the worker, depending on the corpus size.
- Subscribers can adjust their pension amount, i.e., increase or decrease it, once a year during the accumulating period.
- If the subscriber of the pension dies, his or her spouse will be entitled to the same pension amount until both the subscriber and the spouse die.
- The subscriber is responsible for naming a nominee who will be eligible for the subscriber's pension money until the age of 60.
- If the subscriber dies before reaching the age of 60, his or her spouse will be given two options. The spouse can stay in the scheme under the subscriber's name for the remaining years or leave the program and claim the entire cumulative pension amount up to that point.