The Atal Pension Yojana (APY) is a pension scheme initiated by the Government of India to assist the applicants by paying certain amounts to their pension account for funding their retirement life after they turn 60 years of age. The scheme's main intention is to provide assured returns.
Atal Pension Yojana (APY) scheme's vital aim is to help the individuals working in the unorganised sector. Under this scheme, these unorganised sector workers can build the habit of saving money for their retirement on a voluntary basis. The sooner one enrols for APY the better because it'll help in saving more funds for its retirement. The minimum and maximum ages to apply for APY are 18 years and 40 years, respectively.
Following are the steps to take if you desire to exit from the APY:
APY(Atal Pension Yojana) early withdrawal procedure is as follows:
The various methods for exiting from the APY scheme are described below:
Exit before the age of 60 years:
Exiting before the age of 60 years is not permitted; however, it is only permitted in exceptional circumstances, i.e. in the case of death or terminal disease. If the subscriber passes away before reaching 60 years of age, its spouse will be offered the choice to continue with the account. In this case, the account name will be of the spouse and the contributions will have to be continued till the original subscriber would have reached the age of 60 years. Then the pension amount which will be received by the spouse will be the same as what the subscriber would have received. If the spouse chooses not to opt for continuing the scheme, then entire corpus which is accumulated in the APY account will be restored to the spouse or nominee.
In case of death of the subscriber due to any cause:
If the subscriber dies, the pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.
On attaining the age of 60 years:
The exit from APY is permitted when reaching 60 years of age with 100% annuitisation of pension wealth. On exit, the pension would be available to the subscriber.