Save for your grandparents and your grand old days

Celebrated on the first Sunday after the American Labour Day, Grandparents' Day fell on September 12th this year. But why let just a day define your love for your grandparents? Grandparents are the most loving, and also the most loved, person for us. Some of us had a better fortune of spending more time with them than others. Some are even more fortunate enough to make the lives of their grandparents better with a special gesture. If you have grandparents in your life, this Grandparents' Day may be the perfect occasion to gift them with a little financial security for their post-retirement life.

Contribute an amount regularly

You can take a small portion out of your income and contribute it to a retirement fund. When invested in a reliable and growing instrument, this amount can accumulate to form a sizeable corpus. If you have a lump sum, you can transfer it to a fund that will act as the pension annuity fund for your grandparents. 

The Atal Pension Yojana (APY) may be something that your grandparents missed out on. But it is something that you can invest in for your post-retirement income. If you are between the age of 18 and 40, you can join APY through your IDFC FIRST Bank account. You can contribute monthly, quarterly, or half-yearly through auto-debit from your account. 

Build a retirement corpus and generate pension income

As you continue to contribute, your grandparents can receive a small portion of the accumulated sum in the form of a pension. Old age brings in different expenses, like higher medical bills, housekeeping, and nursing expenses, etc. Your gift to your grandparents could also be introducing them to refer and earn program that can ease their monthly financial burden

Similarly, you can build your retirement corpus through APY up to the age of 60. Upon reaching 60 years, you will receive a guaranteed pension of Rs 1,000-5,000 per month. Even after the death of the subscriber, the surviving spouse continues to receive the guaranteed monthly pension. This continues till the death of the spouse.

Your gift as a future grandparent

After the death of the subscriber and the spouse, the nominee of the subscriber receives the pension wealth that the subscriber had accumulated till the age of 60. As a grandparent, you can leave behind a corpus of up to Rs 8.5 lakhs for your grandchild. APY can be the perfect retirement plan for any present-day youth who wants to secure their financial future and also that of the spouse and nominee. All you need for APY with IDFC FIRST Bank is an IDFC FIRST Bank savings account. Aadhaar is the primary KYC document for the subscriber, spouse, and nominee.

APY facts to keep in mind
 

1. You can view your APY transaction statement and your Permanent Retirement Account Number at any time by visiting www.npscra.nsdl.co.in and clicking on Atal Pension Yojana on the home page. 
2. Personal information like the address and contact number of your APY details can be modified on the NPSCRA website.
3. Changes in the frequency of contribution can be altered by the subscriber by writing a request to the APY-SP branch.
4. If you want to exit APY before the age of 60, you can fill the Account Closure Form (Voluntary Exit) and submit it along with other relevant documents to the APY-SP branch. The form is available on the NPSCRA website. The settlement amount will be transferred to your linked IDFC FIRST savings bank account.
5. An 18-year-old subscriber needs to contribute only Rs 42 per month to earn a guaranteed monthly pension of Rs 1,000 after 60 years. In the same scenario, a contribution of Rs 210 will earn the subscriber Rs 5,000 as a monthly pension.

Atal Pension Yojana shows that you don’t have to shell out a lot of money to ensure a guaranteed pension in your life. It also reminds us that as you contribute a small sum for your grandparent’s golden years, you should also set aside something for your future too.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.