Why Buying Atal Pension Yojana Is A Must For Seniors?

The Atal Pension Yojana is one of the most beneficial social security schemes introduced by the Government in the year 2015-16. As a part of the scheme, people can make contributions in their Atal Pension Yojana account till the age of 60 years and get a monthly pension. This is beneficial, since it provides people with an assured minimum pension sum to meet their expenses after they turn 60 years of age.

The Atal Pension Yojana is very simply structured, which makes it easy to understand for anyone who wants to open an account under the scheme. All major banks offer the scheme to their customers who want to open accounts under the scheme. The scheme is based on contributions from the depositor up to the age of 60 years. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Benefits Of Atal Pension Yojana

Here are the different Atal Pension Yojana benefits to know about:

1. Death Benefits

The Atal Pension Yojana death benefits accrue to the spouse of the contributor. On death of the contributor, the pension automatically vests to the spouse who is the default nominee. In case of death of the contributor and the spouse, the nominee will get the predefined corpus amount for the particular pension slab. In case of death of the contributor before the age of 60 years, the spouse has an option to continue the Atal Pension Yojana account and receive benefits under it or close the account and receive the contributions made and the gains on it.

2. Retirement Benefits

The main Atal Pension Yojana benefits is the retirement benefit. Depending on the contributions made, the monthly pension will be paid out. There are different pension amounts Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 and Rs. 5,000. The contribution amounts for these pensions are different. In case of death of the subscriber, the pension is paid to the spouse.

3. Tax Benefits

To give an impetus to people to invest in the Atal Pension Yojana, the Government is giving tax benefits on contributions made to the scheme. The Atal Pension Yojana tax benefits can be availed under Section 80CCD  (1B), to the tune of Rs. 50,000 over and above the Rs. 1.5 lakhs. This will help to reduce the taxable income of the subscriber.

Conclusion

With these benefits, it is a good decision to contribute  to ensure pension is received. The Atal Pension Yojana has simple terms and conditions which make it easy for the contributors to understand.

Also read - Prime Benefits Of Buying A Retirement Plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.