Govt considering hike in pension age limit under APY

The Pension Fund Regulatory and Development Authority (PFRDA) has submitted a proposal to increase the limit of pension and age which the government is looking into.

The proposal, under the Atal Pension Yojana (APY), is beingexamined by the government, said Union Minister of Finance Corporate Affairs,Nirmala Sitharaman in a written reply to Parliament.

   

The APY is based on defined benefit for providing aguaranteed minimum monthly pension of Rs 1,000/Rs 2,000/Rs 3,000/Rs 4,000/Rs5,000 at the age of 60 years based on the pension amount chosen.

The scheme is available to account-holders between the ageof 18 to 40 and offers a minimum guaranteed monthly pension of between Rs 1,000and Rs 5,000, depending on the customer’s contribution which starts at as lowas Rs 42 per month.

In addition, the spouse gets a monthly pension after thedeath of the subscriber and the nominee gets the corpus amount of up to Rs 8.5lakh in the event of the death of the subscriber and the spouse.As per the APY rules, from the age of 60 years,a subscriber would receive a minimum guaranteed pension of Rs 1000-Rs 5000 permonth, depending upon his contribution. The same pension would be paid to thespouse of the subscriber and on the demise of both the subscriber and spouse,the accumulated pension wealth is returned to the nominee.

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