Closing the Atal Pension account before age 60: How much money will you get? Understand the rules regarding interest.

If you are investing in the Atal Pension Yojana (APY) but are now considering closing the account before the age of 60 for some reason, you should know how much money you will receive.

While employed, most people look for investment avenues that provide income even after retirement. Many choose the Atal Pension Yojana (APY) due to its various benefits; however, if someone is contemplating closing the account before turning 60, it is crucial to understand the scheme's specific rules.

What happens if the account is closed early?

If an individual closes their Atal Pension Yojana account before the age of 60, they will receive a refund of their accumulated contributions along with the accrued returns; however, please note that certain charges may be deducted.

Will a pension be received after age 60?

If you remain invested in the Atal Pension Yojana until the age of 60 without closing the account prematurely, you are eligible for a guaranteed monthly pension ranging from ₹1,000 to ₹5,000. However, the specific pension amount will depend on the age at which you started the scheme and the total amount you contributed.

Is it advisable to close the account prematurely?

The scheme's primary benefit is the provision of a guaranteed minimum monthly pension of ₹1,000 to ₹5,000 after the age of 60. Whether or not it is advisable to close the account early depends on your specific needs. If you face an urgent financial requirement and have no other alternatives, you might consider closing the account.

If there is no immediate financial need, continuing the APY account until age 60 could prove beneficial for you. Therefore, before closing the account, weigh whether you have a pressing need for the funds now or if the future pension benefits would be more advantageous for you.

Will you get the benefit of the government contribution?

The direct answer is no. If you voluntarily close your Atal Pension Yojana account, you will not receive the government's contribution or the returns earned on it. You will only get back your own deposited amount along with the accrued interest, though certain charges are deducted for premature account closure.