Atal Pension Yojana - Eligibility, Features, Benefits, Forms And Operation
Published On Nov 26, 2021 10:00 AM By InsuranceDekho
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The Atal Pension Yojana is a pension scheme aimed at giving pension benefits to the unorganised sector, which accounts for a substantial portion of the country's workforce. The plan replaced the Swavalamban Yojana, which had received few applicants since it did not guarantee pension payments at the age of 60. The Atal Pension Yojana's investing goal is to offer social security to the elderly, particularly the impoverished and destitute.
This plan, unlike the Swavalamban Yojana, guarantees returns throughout the retirement period or at the conclusion of the policy's term. All individuals working in the private sector and non-tax payers or members of any social security plan also can avail these benefits. All eligible family members can join this pension scheme in their names to receive increased pension benefits for themselves and their families. To find out more about the feature, eligibility, etc., on Atal Pension Yojana, read on.
Features And Benefits Of Atal Pension Yojana
Following are the features and benefits of Atal Pension Yojana -
1. Guaranteed Pension
An insured individual of Atal Pension Yojana is eligible to receive a periodic pension of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, or Rs. 5000 as per their monthly contribution.
2. Withdrawal Procedure
When an insured individual reaches the age of 60 as a beneficiary of the APY plan, they are able to annuitize the entire fund amount, which means they can get a monthly pension after ending the scheme with their respective bank. It's worth noting that an insured individual can only leave the plan before 60 years if they have a terminal disease or die. The spouse is entitled to the pension if the husband or wife dies before reaching the age of 60. In this instance, the spouse has the choice of choosing pension benefits or exiting the APY with the collected funds. If an insured individual opts to leave the Atal Pension Yojana before reaching the age of 60, they will only get their cumulative contributions and earned interest.
3. Age Limit
Individuals who are over the age of 18 but under the age of 40 are eligible to invest in this plan. As a result, college students can participate in the Atal Pension Yojana to build a fund for their retirement. Furthermore, the maximum age for this programme is fixed at 40 years. This will ensure that you contribute for a minimum of 20 years.
Atal Pension Yojana Eligibility
The following are the eligibility requirements for joining the Atal Pension Yojana Scheme:
1. Individuals who have a valid savings account are eligible to apply for an Atal Pension Yojana account.
2. The candidate must be between the ages of 18 and 40.
3. Each candidate must provide a valid mobile phone number at the time of application.
4. The government also provides a co-contribution amount to select Atal Pension Yojana members.
Operations Of Atal Pension Yojana
Following are the listed operational work of Atal Pension Yojana -
1. Enrolment Agencies
Through the National Pension System's design, aggregators under the service providers (Points of Presence-POP) and the Swavalamban Plan will be enrolled. Banks, as POPs or aggregators, can hire micro insurance agents, mutual fund agents, BCs, and non-banking aggregators as facilitators for operations-related tasks. Banks are also free to distribute any incentives they get from the PFRDA or the Government of India related to this plan as they see suitable.
2. Atal Pension Yojana Funding
The Government of India provides a guaranteed fixed pension to endorsers who co-contribute 50% of the total additional amount each year. As well as compensation for promotional and developmental efforts, as well as incentives for setting up contribution collection companies.
The Atal Pension Yojana is funded by the Indian government, and it is administered by the Pension Fund Regulatory and Development Authority (PFRDA). The APY scheme is the institutional architecture of the National Pension System for enrolling new endorsers. PFRDA creates the account opening form and the offer document for the Atal Pension Yojana plan.
Also Read: What Are The Differences Between Provident Fund And Retirement Plans?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.