Complete Guide On Atal Pension Yojana
Updated On Apr 22, 2021
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Under the National Pension Scheme, the Government of India has announced a guaranteed pension scheme for the Indian citizens, to help them with financial help in their sunset years. Through the Atal Pension Yojana (APY) scheme, the subscribers can get a minimum pension of Rs. 1000 to Rs. 5000 per month and the Government will also contribute to 50% of the subscriber’s contribution or Rs. 1000 PA, whichever is lower for the first five years. This contribution is applicable for those who are not covered under any other social security schemes and non-income taxpayers.
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Eligibility Criteria to Join the Atal Pension Yojana
This pension scheme has been initiated by the Indian Government to offer a steady source of income, post-retirement for the unorganized sector of the country such as gardeners, drivers, maids, etc.
This scheme was introduced in June 2015 and is considered a replacement for the Swavalamban Yojana. This scheme can be adopted by any Indian Citizen between the age of 18 and 40 years. To create an APY account, the applicant should have a savings account either with a bank or a post office.
The monthly contribution amount goes up with age and the minimum contribution at the age of 18 years is between Rs. 42 and Rs. 210 per month. The contribution amount will be deducted from the contributor’s bank account every month through an automatic debit facility. The minimum time duration of contribution under this scheme is 20 years. The subscribers can contribute to this scheme either monthly, quarterly, or half-yearly.
The minimum pension amount that is paid to the contributors is from Rs. 1,000 to Rs. 5,000 per month. The subscriber is free to choose their minimum pension amount at the time of subscription. Pensions are paid for senior citizens of India after 60 years of age and the higher the investment, the higher will be the pension. Subscribers can also claim income tax under section 80 C.
How To Exit Atal Pension Yojana Scheme?
Subscribers are not generally allowed to exit the scheme before they attain 60 years of age. Under exceptional circumstances such as death or terminal disease, the exit is allowed. In the event of the death of the subscriber, the monthly pension will be paid to the spouse. However, the spouse of the subscriber will be given a chance to either continue maintaining the account or claim the accumulated amount. After the death of the spouse, the accumulated pension wealth is handed over to the nominee of the subscriber.
How to Apply for the APY Scheme?
People can open the APY from any bank or post office, where they have a savings account and can pay either by internet banking or through the auto-debit feature from the account. Many nationalized banks offer this scheme in India.
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The Atal Pension Yojana is an excellent scheme introduced by the Government of India to secure the financial planning of the unorganized sector in India. Any Indian citizen who is between the age group of 18 to 40 years is eligible to join the scheme.