Atal Pension Yojana (APY) is a government-backed pension scheme launched by the Government of India to provide financial security to the common citizens of the country, especially the workers of the unorganized sector, the poor, and the deprived. Under this scheme, a monthly pension ranging from ₹ 1000 to ₹ 5000 is available after the age of 60 years.
If you are also investing in APY and you have chosen a pension amount of ₹ 2000, but now want to make it ₹ 5000, is it possible? If yes, then how? Let us understand the complete information about this in detail so that you can further strengthen your financial security in old age.
What is Atal Pension Yojana
Atal Pension Yojana (APY) is a voluntary pension scheme for all Indian citizens, especially workers in the unorganized sector, who do not have any retirement plans. Under this scheme, investors contribute a fixed amount monthly, quarterly, or half-yearly depending on their chosen pension amount and time of joining.
There is an option to receive a pension of ₹1,000 per month, ₹2,000 per month, ₹3,000 per month, ₹4,000 per month, and ₹5,000 per month under this scheme. The scheme is backed by the central government, which means your deposits and the interest earned are safe, making it a reliable savings instrument.
Can the pension amount be increased from ₹2,000 to ₹5,000
Yes, you can increase your pension amount under APY. The scheme allows subscribers to increase or decrease their pension amount once every financial year during the accumulation phase (i.e., the period before reaching the age of 60 and starting to receive a pension).
This flexibility ensures that subscribers can adjust their retirement goals based on their financial situation. This is a great facility for those whose income increases over time and who want more pensions.
You have to apply to the bank
To increase the pension amount, you have to go to the bank where you have opened your APY account. There you have to make an application that you want to increase your pension amount. As soon as you request a pension upgrade, the bank or PFRDA (Pension Fund Regulatory and Development Authority) will calculate your new contribution (monthly contribution) based on your current age.
After this, the monthly deposit amount will increase which will be automatically deducted from your bank account every month. For this, you may have to fill out a new auto debit form in the bank, giving consent for the increased contribution amount. By doing this, you can easily increase your pension amount and strengthen the financial security of old age.
Process of increasing pension amount
First of all, go to the bank branch where you have your Atal Pension Yojana account.
Ask the bank officer for the relevant application form (Modification Form) for changing the APY pension amount. In some banks, this is known as the ‘APY Subscriber Shifting / Modification Form’.
Mention your APY account number, Aadhaar number, and the increased pension amount you wish to receive in the form.
The bank official will tell you the new monthly contribution for the increased pension amount as per your current age.
If required, you will have to fill out a new Auto Debit Mandate or consent form for the new contribution amount. This ensures that the increased amount is deducted from your account regularly.
Submit the filled form along with all the required documents (like a copy of an Aadhaar card) to the bank.
The bank will confirm your request to you.