Oct 242015
 

Half Yearly Premium Plans for Atal Pension Yojana

PM Narendra Modi’s flagship program or scheme known as Atal Pension Yojana did become the talk of the year because it encompassed people from unorganized sectors of the economy who do not have any access to formal pension plans as offered to employees of organized sectors. Looking for the point of people employed in Indian unorganized sector, APY is like a social security scheme.

Half Yearly Premium Plans for Atal Pension Yojana

The initial version of the scheme was not very user-friendly and considering the increasing number of negative feedbacks, the government redid some of the stringent clauses, making APY a far more pro-user scheme.

The major changes that were introduced in the new version covered the following basics:

  • Introduced the option of premature exit which was not allowed in previous version unless there was an exceptional case of death or critical illness or terminal illness.
  • Introduced a flat penalty system for payment delays across all slabs.
  • Introduced an option of keeping the account active until the account balanced came down to zero in case the subscriber stops paying.
  • Introduced quarterly and half-yearly payment modes in addition to monthly premium payment mode.

However, the government did not allow any concession for those who opted for quarterly or half-yearly premium payments. In case you want to know the exact amount you need to pay in case you opt for half-yearly payment mode, here is the complete breakup for different pension slabs that are allowed under Atal Pension Yojana:

Pension Slab: 1000 per month

Entry Age Number of Years of Contribution Monthly Premium Half Yearly premium Monthly Pension
18 42 42 252 1000
20 40 50 300
25 35 76 456
30 30 116 696
35 25 181 1086
40 20 291 1746

Pension Slab: 2000 per month

Entry Age Number of Years of Contribution Monthly Premium Half Yearly premium Monthly Pension
18 42 84 504 2000
20 40 100 600
25 35 151 906
30 30 231 1386
35 25 362 2172
40 20 582 3492

Pension Slab: 3000 per month

Entry Age Number of Years of Contribution Monthly Premium Half Yearly premium Monthly Pension
18 42 126 756 3000
20 40 150 900
25 35 226 1356
30 30 347 2082
35 25 543 3258
40 20 873 5238

Pension Slab: 4000 per month

Entry Age Number of Years of Contribution Monthly Premium Half Yearly premium Monthly Pension
18 42 168 1008 4000
20 40 198 1188
25 35 301 1806
30 30 462 2772
35 25 722 4332
40 20 1164 6984

Pension Slab: 5000 per month

Entry Age Number of Years of Contribution Monthly Premium Half Yearly premium Monthly Pension
18 42 210 1260 5000
20 40 248 1488
25 35 376 2256
30 30 577 3462
35 25 902 5412
40 20 1454 8724

So, for half-yearly premium, you need to 6 times the monthly premium only twice in a given year. There will be no concessions whatsoever in case you opt for half-yearly premium. However, in case you ask us, we’ll say that half-yearly payment puts a huge strain on finances if your entry age is high and you opt for higher pension slab. It is always wise to go for monthly premiums in such scenarios.

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