What Are The Key Atal Pension Yojana Maturity Benefits?
Published On Dec 08, 2021
Table of Contents
The Atal Pension Yojana is a pension scheme that attempts to give pension benefits to India's unorganised sector, which employs a huge number of Individuals. Swavalamban Yojana, which had few applications since it did not guarantee pension payments at the age of 60, was replaced with this plan. The Atal Pension Yojana's goal is to give social security to the aged, especially the impoverished and vulnerable.
Unlike the Swavalamban Yojana, this plan ensures returns during retirement or at the end of the policy's term. These benefits are available to all private sector employees, as well as non-taxpayers and members of any social security scheme. In order to gain enhanced pension benefits for themselves and their families, all eligible family members can join this pension programme in their own names. To understand more about the features, eligibility, etc., on Atal Pension Yojana, read on.
Benefits Of Atal Pension Yojana
Following are some benefits of Atal Pension Yojana -
A monthly payment of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, or Rs. 5000 is ensured under Atal Pension Yojana to the respective insured individual.
When a beneficiary of an APY plan reaches the age of 60, they can annuitize the full fund balance, which means they can get a monthly pension when the scheme with their specific bank is terminated. It's worth mentioning that an insured individual can only exit the plan before reaching the age of 60 if they are diagnosed with a terminal illness or die. If the respective partner dies before reaching the age of 60, the spouse is entitled to the pension. In this case, the spouse can choose between receiving pension benefits or departing the APY with the cash accumulated. If an insured individual withdraws from the Atal Pension Yojana before reaching the age of 60, they will only get their total payments and earned interest.
Individuals under the age of 40 who are over the age of 18 are eligible to invest in this plan. As a result, college students can contribute to the Atal Pension Yojana to develop retirement savings. In addition, the maximum age for this programme is set at 40 years old. This will guarantee that an individual can donate for at least 20 years.
Atal Pension Yojana Eligibility
Following are the eligibility requirements for an individual to joining the Atal Pension Yojana Scheme:
- Individuals with valid savings accounts are eligible to apply for an Atal Pension Yojana account.
- Individuals must be between the ages of 18 and 40.
- Each individual must provide a valid mobile phone number at the time of application.
- Atal Pension Yojana members are also eligible for a government-funded co-contribution.
Operations Of Atal Pension Yojana
Following are the listed operational work of Atal Pension Yojana -
Aggregators under service providers (Points of Presence-POP) and the Swavalamban Plan will be enlisted as a result of the National Pension System's architecture. Micro insurance agents, mutual fund agents, BCs, and non-banking aggregators can be hired as facilitators for operations-related duties by banks acting as POPs or aggregators. Banks are also allowed to provide any PFRDA or Government of India incentives linked to this scheme as they deem fit.
Atal Pension Yojana Funding
The Government of India offers endorsers who pay 50% of the entire extra sum each year a guaranteed fixed pension. Incentives for establishing contribution collection firms, as well as rewards for promotional and developmental activities.
The Pension Fund Regulatory and Development Authority administers the Atal Pension Yojana, which is sponsored by the Indian government (PFRDA). The APY scheme is the National Pension System's institutional architecture for enrolling new endorsers. PFRDA prepares the Atal Pension Yojana plan's account opening form and offer document.
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.