Secure Your Retirement with Atal Pension Yojana (APY) through LIC Pension Fund Scheme

Secure Your Retirement with Atal Pension Yojana (APY) through LIC Pension Fund Scheme

The Atal Pension Yojana (APY) is a government-backed pension scheme in India designed to provide financial security after retirement, particularly for those working in the unorganized sector. Unlike previous schemes that didn't guarantee returns, APY offers a guaranteed minimum monthly pension ranging from ₹1,000 to ₹5,000 upon reaching the age of 60.

Key Features of APY with LIC Pension Fund Scheme

• Affordable Contributions: The minimum monthly contribution you need to make depends on your age and desired pension amount. For instance, a 25-year-old aiming for a ₹3,000 monthly pension would contribute only ₹347 per month.
• Flexible Investment Options: You have the freedom to choose your contribution frequency – monthly, quarterly, or semi-annually.
• Guaranteed Pension: Unlike other investment plans, APY assures a fixed monthly pension after retirement, providing peace of mind.
• Choice of Pension Amount: You can select your desired pension amount – ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000.
• Investment Tenure: The investment period depends on when you join the scheme. 20 years is the minimum contribution period.
• Auto-Debit Convenience: For monthly contributions, APY offers an auto-debit option linked to your bank account, ensuring timely payments and avoiding penalties for insufficient balance.
• Benefits Upon Death: In case of the account holder's death, the spouse becomes eligible for the pension. Additionally, the nominee receives the accumulated pension corpus.
• Tax Benefits: Contributions to APY are tax-deductible under Section 80CCD(1) of the Income Tax Act, with a maximum exemption of ₹1.5 lakh per year.

Eligibility for APY through LIC Pension Fund Scheme

To open an APY account with LIC Pension Fund Scheme, you must meet the following criteria:

• Indian Citizenship: You must be a citizen of India.
• Age Limit: The entry age is 18 years, and the maximum entry age is 40 years.
• Minimum Contribution Period: You must commit to contributing for at least 20 years.
• Aadhaar and Phone Number: Possession of an Aadhaar number and a registered mobile phone number are mandatory.
• Valid Bank Account: You need a valid savings bank account for contributions and pension payouts.

How to Apply for APY with LIC

You can open an APY account by visiting your nearest LIC branch. Here's a step-by-step guide:

1. Obtain the APY Application Form: The form is available at LIC branches, banks, and online. It's provided in multiple languages for your convenience.
2. Complete the Form: Fill out the application form accurately, including your phone number, bank account details, and Aadhaar number.
3. Attach Documents: Submit a photocopy of your Aadhaar card along with the completed form.
4. Initial Contribution: The initial contribution amount will be debited from your linked bank account upon account opening.
5. Acknowledgement and Auto-Debit: The bank will provide you with an acknowledgement number or PRAN (Permanent Retirement Account Number). Upcoming contributions will be auto-deducted from your registered bank account.
6. Confirmation: Upon successful application processing, you'll receive a confirmation message on your registered mobile number.

Benefits of Choosing APY with LIC Pension Fund Scheme

• Guaranteed Pension: Secure a regular income source after retirement with a guaranteed minimum pension.
• Flexibility: Choose your desired contribution amount and frequency that suits your budget.
• Tax Savings: Reduce your taxable income by claiming tax deductions on your APY contributions.
• Spousal Benefits: In case of the subscriber's death, the spouse receives the pension, ensuring financial security.
• Nominee Benefit: The nominee receives the accumulated pension corpus if the subscriber dies before reaching 60.
• Death Benefit Option: If the subscriber dies prematurely, the spouse has the option to continue the scheme or withdraw the accumulated corpus.

Take charge to secure your financial future.