Atal Pension Yojana: Premature withdrawal rules and how to claim maturity payout amount, explained

Part of the broader National Pension System (NPS), the Atal Pension Yojana (APY) provides pension cover for poor, underprivileged, and unorganised sector workers between 18-40 years who are not income tax-payees.

Earlier this week, the Bank of Maharashtra (BoM), State Level Bankers’ Committee (SLBC) and PFRDA conducted an outreach drive in Thane district focused on enrolment in the scheme, particularly for those from the unorganised sector, PTI reported citing officials.

BoM officials stressed on the importance of coordinated banking efforts to extend social security to underserved populations, noting that APY’s guaranteed monthly pension benefits can secure financial stability for citizens, it added.

A government initiative administered by the Pension Fund Regulatory and Development Authority, it aims to create a universal social security system in India. Today, we check the rules for premature withdrawal and how to claim maturity payouts.

How to open a APY account?

You can open an APY account through your bank or post office using an Aadhaar-linked savings account. You can also open a new bank or post office account and complete Aadhaar-KYC to gain access to the pension scheme.

What is the pension payout under APY?

APY subscribers are set to receive guaranteed minimum monthly pension payout of one of the following sums: ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 after the age of 60 years, based on the contributions made after joining the scheme.

Atal Pension Scheme: How to make pension claim?

APY has tenure till the subscriber reaches 60 years of age, post which you are eligible for 100% annuitisation of accumulated pension.

A subscriber wishing to claim their pension payout is required to submit a request to their bank or post office. Once accepted, you will start receiving monthly pension until death.

Can I make early or premature withdrawal?

Yes. However, early withdrawal is only allowed in exceptional cases such as death of the subscriber, or requirement of corpus for terminal disease.

In case of death of subscriber, the pension will be paid to the spouse or nominee.

Further, in case the account is closed before you reach 60 years of age, only the contribution amount and interest earned is paid. You will lose the government’s co-contribution or the interest earned on that amount.

Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.