The Atal Pension Yojana (APY) is a lifelong pension scheme that ensures financial security in old age. But what happens if an APY subscriber passes away after turning 60? This guide explains how the pension is distributed, nominee rules, and what the family can expect in such situations.

What Happens When an APY Subscriber Dies After 60?

1️⃣ If the Subscriber Had a Spouse

• The spouse continues receiving the same pension amount as the subscriber.
• Example: If the subscriber was receiving ₹5,000 per month, the spouse will also get ₹5,000 per month for life.

2️⃣ If the Subscriber Had No Spouse

• The nominee (legal heir or children) will receive a lump sum corpus amount as per the contribution plan.
• The pension does not continue in this case.

3️⃣ If Both Subscriber and Spouse Pass Away

• The entire pension corpus (total accumulated amount) is paid to the nominee/family members.

How Much Will the Nominee Receive?

The nominee will receive a one-time payout based on the original pension plan chosen by the subscriber.

✅ Example: If the subscriber was receiving ₹5,000 per month and both the subscriber & spouse pass away, the nominee will receive ₹8.5 lakh as a lump sum.

Steps for Claiming APY Benefits After Death

For the Spouse (Pension Continuation)

1. Visit the bank/post office where the APY account is held.
2. Submit the death certificate of the subscriber.
3. Provide KYC documents (Aadhaar, PAN) of the spouse.
4. Pension will be transferred to the spouse’s account.

For the Nominee (Lump Sum Payout)

1. If the subscriber and spouse have both passed away, the nominee needs to visit the bank.
2. Submit the death certificates of both subscriber & spouse.
3. Provide ID proof, nominee details, and APY account details.
4. The final corpus amount will be transferred to the nominee’s bank account.

Frequently Asked Questions: What Happens If APY Subscriber Dies After 60?

1. Can the Nominee Continue the Pension Instead of Taking the Corpus Amount?

No, the APY scheme does not allow nominees to continue receiving a pension. The only option is a lump sum payout.

2. What Happens If No Nominee Is Registered?

If no nominee was assigned, the legal heirs (children or next of kin) can claim the amount by providing legal succession proof.

3. Is the Nominee Payout Taxable?

No, the final lump sum payout is tax-free under current tax laws.

Conclusion

If an APY subscriber passes away after 60, the spouse will continue receiving the pension for life. After the spouse’s death, the nominee will receive a lump sum payout. If no spouse is alive, the nominee directly gets the corpus amount.

📢 Ensure your APY nominee details are updated in your bank to avoid claim issues!