Now Atal Pension Yojana (APY) subscribers have the flexibility to increase or decrease the pension amount anytime during the year with effect from July 1, 2020. Earlier this facility was available only during the month of April every year.
However, this change in the pension amount can be done only once in a year. The PFRDA, which regulates pension funds, has asked all banks to process pension amount change requests throughout the year.
The latest change in APY rule gives its subscribers the flexibility to either increase or decrease the targeted pension amount anytime during the year depending on the change in his/her income.
Under the APY scheme, a subscriber has the option to receive a minimum guaranteed pension of Rs.1000 to Rs.5000 per month after attaining the age of 60 years. Depending on the pension amount the monthly contribution is calculated.
How it works
Suppose you have opted for the APY scheme when you were 30 to receive Rs 1,000 monthly pension starting from the age of 60. Now you are 34 years old and want to increase the pension amount to Rs 4,000 per month when you turn 60 as your income has increased. This is possible in case of APY. Your revised contribution amount is decided based on the pension amount. Similarly, a reduction in pension amount is also allowed in case you feel that you are not able to continue the required monthly contribution………….Read More>>