Benefits

 

Atal Pension Yojana scheme offers several benefits

 

1. Retirement Income: APY is designed to provide a regular pension income after retirement. By maintaining persistency in the scheme, one can ensure a steady income stream during their retirement years, helping them maintain financial stability and independence.
2. Long-term Savings Growth: Persistently contributing to an APY scheme allows individuals to accumulate savings over time. The longer the duration of contributions, the higher the corpus that can be built, thanks to compound interest and investment growth.
3. Financial Discipline: Persistently investing in an APY scheme cultivates financial discipline. Regular contributions instill a habit of saving and planning for the future, which can have positive implications for overall financial health.
4. Low Cost: APY is a low-cost pension scheme, making it an affordable option for individuals looking to build a retirement corpus. By consistently contributing to the scheme, individuals can take advantage of the low administrative and maintenance costs associated with APY.
5. No Market Risk: APY guarantees a fixed pension amount based on the contribution level and age of the subscriber, eliminating market risk. Persistency ensures that individuals continue to enjoy this benefit without being affected by market fluctuations.
6. Tax Benefits: Contributions made to APY are eligible for tax benefits under Section 80CCD of the Income Tax Act. Persistently contributing to the scheme allows individuals to avail of these tax benefits, thereby reducing their taxable income and enhancing overall savings.

In summary, persistency in an APY scheme not only secures a stable retirement income but also offers various financial benefits such as long-term savings growth, tax benefits, and financial discipline, making it a valuable investment option for retirement planning.