Atal Pension Yojana (APY) is an old age income security scheme for a savings account holder in the age group of 18-40 years who is not an income tax-payee. The scheme helps in addressing the longevity risks among the workers in the unorganized sector and encourages the workers to voluntarily save for their retirement.
Atal Pension Yojana is a pension scheme that focuses on helping the working poor have a steady income after retirement.
The Indian government launched the Atal Pension Yojana pension program in 2015-16. Its implementation was motivated by the desire to offer pension benefits to people working in the unorganized sector.
What is the Atal Pension Yojana?
- Initiated by the Indian government, the Atal Pension Yojana is a social security program that aims to give all Indian citizens a reliable income after they turn 60.
- In other words, it is a pension program that primarily serves those who work in the informal economy, such as housekeepers, maids, deliverymen, gardeners, etc.
- The main objective of this scheme is to give Indian citizens a sense of security by ensuring that they are not concerned about unexpected illness, accidents, or chronic illnesses in their old age.
- Employees in the private sector and those working for organisations that do not offer pension benefits are also eligible to apply, so it is not just the unorganised sector.
Atal Pension Yojana Information
Pension Amount | Up to Rs.5,000 |
Age Limit | 18 years – 40 years |
Contribution Period | Minimum 20 years |
Exit Age | 60 years |
The Atal Pension Yojana (APY) scheme was announced by the Government of India in the 2015-2016 budget with the purpose of helping individuals who are working in the unorganised sector.
- A pension of up to Rs.5,000 is paid per month
- Tax benefits are provided
- The Indian Government co-contributes towards the scheme
- Risk-free scheme
Atal Pension Yojana scheme encourages them to save for their retirement. All operations of the scheme are handled by the Pension Fund Regulatory and Development Authority (PFRDA). The APY scheme is a voluntary scheme to save for retirement.
Atal Pension Yojana Eligibility
- You must be an Indian citizen.
- You must be between the ages of 18 and 40 years.
- You must have an active mobile number.
- You must have a valid bank account number linked to your Aadhaar number.
- You must submit all ‘Know Your Customer‘ details.
- You must not have an existing APY account.
- You must make contributions to the APY scheme for at least 20 years
- You must not be eligible for any other social welfare programme.
In addition, those who were Swavalamban Scheme beneficiaries are eligible and transferred to the APY scheme.
Benefits of Atal Pension Yojana
- The scheme is guaranteed by Government of India and hence is a low-risk investment option
- Easy for Indian residents whether self-employed or salaried to subscribe
- Under Section 80CCD (1) of the Income Tax Act, 1961, contributions made qualify under tax benefits
- Depending on contributions made by the subscriber, guaranteed pension amount of Rs.1,000, Rs.2000, Rs.3000, Rs.4000 or Rs.5,000 will be paid
- Offers flexibility to the subscribers for contribution, which is either monthly, quarterly, or half-yearly
- Both organized and unorganized sector workers, is allowed for APY subscription
- Based on subscriber’s choice, pension amount can be upgraded or downgraded
- In case of demise of the APY subscriber, spouse, nominee, or next of kin will receive guaranteed benefits as per applicable rules
- Individuals contributing to other private or government-backed pension schemes are also eligible to make contribution to APY scheme
Objectives of Atal Pension Yojana
- Provision of security and protection of citizens against illness, accidents, diseases, and so on.
- This scheme is mainly aimed at the unorganized sector in the country.
- Under the APY, will receive monthly payments from their accrued corpus. If a beneficiary passes away, the pension payments will be made to their spouse. In the event of both the beneficiary and their spouse’s death, a lump sum payment will be made to the nominee.
Registration and Login of APY Account
- You can register to Atal Pension Yojana account through any banks in India
- Any Indian banks can assist you to register for APY via NSDL or Karvy
- you will be provided a PRAN (Permanent Retirement Account Number) after completing your registration
- You will need PRAN and applicable APY account password to log into your APY account
- You can also log into your APY account using your PRAN and account number via NSDL portal
How to Open an Atal Pension Yojana Account?
The following are the steps to open an Atal Pension Yojana Account:
- Visit your local bank branch, and submit dully filled PAY registration form
- Provide the required details, such as:
- Bank account number
- Aadhar Number
- Mobile number
- At the time of account opening, the first contribution amount will be deducted from your linked bank account
- Acknowledgment Number or PRAN Number will be issued by the bank
- The further contributions will be done automatically from your bank account
FAQs
What is the Atal Pension Yojana (APY)?
Atal Pension Yojana is a government-backed pension scheme aimed at providing a sustainable pension to citizens of India, especially those in the unorganized sector, during their old age.
What are the benefits of the Atal Pension Yojana?
The scheme provides a guaranteed minimum pension ranging from Rs. 1,000 to Rs. 5,000 per month, depending on the contribution amount and the age of the subscriber at the time of joining.
How does the Atal Pension Yojana work?
Subscribers choose a pension amount they wish to receive monthly after retirement and contribute accordingly. The pension amount depends on the age of joining, contribution period, and the amount contributed.
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