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 AgeNumber of Years of ContributionMonthly PremiumHalf Yearly premiumMonthly Pension
1842422521000
204050300
253576456
3030116696
35251811086
40202911746

Pension Slab: 2000 per month

Entry AgeNumber of Years of ContributionMonthly PremiumHalf Yearly premiumMonthly Pension
1842845042000
2040100600
2535151906
30302311386
35253622172
40205823492

Pension Slab: 3000 per month

Entry AgeNumber of Years of ContributionMonthly PremiumHalf Yearly premiumMonthly Pension
18421267563000
2040150900
25352261356
30303472082
35255433258
40208735238

Pension Slab: 4000 per month

Entry AgeNumber of Years of ContributionMonthly PremiumHalf Yearly premiumMonthly Pension
184216810084000
20401981188
25353011806
30304622772
35257224332
402011646984

Pension Slab: 5000 per month

Entry AgeNumber of Years of ContributionMonthly PremiumHalf Yearly premiumMonthly Pension
184221012605000
20402481488
25353762256
30305773462
35259025412
402014548724

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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