Search This Website

Sunday, May 10, 2020

Atal Pension Yojana (APY) Government Scheme Details

APY Scheme Details

Atal Pension Yojana (APY) is a pension scheme launched by the Government of India for the benefit of individuals, especially those working in the unorganised sector. The scheme was launched in 2015 and replaced the previously launched government scheme, Swavalamban Yojana. The underlining objective of this scheme is to provide social and financial security to people in their old age by enabling them to make regular savings during their productive years. APY aims at providing minimum guaranteed monthly pension after the age of 60 years in different slabs viz. Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 and Rs. 5,000. Apart from workers in the unorganised sector for which the scheme is highly beneficial, employees from the private sector can also apply for APY to avail its numerous advantages. The pension amount will be fixed depending on the age of the subscriber and the contribution made by him or her.

A subscriber’s spouse is entitled to claim the pension amount under the Atal Pension Yojana upon his or her death. The spouse have two options before them if a subscriber dies before completing the age of 60 years - to exit the scheme and claim the entire pension amount or continue with the scheme for the remaining period. In case of death of both the subscriber and the spouse, the accumulated pension amount can be claimed by the nominee. In accordance with the investment pattern set by the government, the collected amount under APY is managed by the Pensions Funds Regulatory Authority of India (PFRDA). The central government also co-contributes 50% of the total contribution or Rs. 1,000 per annum, whichever is lower, to each eligible subscriber who joined the scheme between before 31st December 2015, for financial year 2015-16 to 2019-20. This is applicable if subscribers are not income tax payers or part of any other social security scheme.

Benefits of Atal Pension Yojana

The Atal Pension Yojana is an excellent saving scheme for individuals and offers ample benefits at a time when a person’s income-earning capacity is low. The savings made through this scheme enables people to deal with rising cost of living and lead a dignified life even after retirement. Some of the advantages of APY are given below:
Click Here to View Divyabhaskar News
  1. The subscribers can increase their premium as per their choice and can look forward to huge monthly pension amounts, ranging between Rs. 1,000 and Rs. 5,000, by making significant contributions.
  2.  Regular updates such as status of contribution are provided to the subscribers via SMS alerts and physical account statement.
  3.  The account is portable and will be linked to bank account so that the subscriber can operate it from anywhere in the country.
  4. ➤ APY is an affordable scheme and is available at ultra-low cost and investment can be as low as Rs. 42 per month, provided the age at entry is 18 years.
  5.  It is regulated by PFRDA with transparent investment norms. The money contributions made by subscribers of APY are maintained safely.
  6. ➤ At the time of investment, individuals can claim income tax benefit of up to Rs. 1.5 lakh under the section 80C of the income tax act of 1961. Moreover, they can also avail deductions of up to Rs. 50,000 under section 80CCD (1B).

Atal Pension Yojana Eligibility

To avail the multiple benefits of Atal Pension Yojana scheme, individuals should meet the eligibility criteria, as mentioned below:

  1.  The subscribers of the Atal Pension Yojana scheme should be a citizen of India.
  2. ➤ The minimum age of an individual applying for the scheme is 18 years and maximum age is 40 years. If an individual joins at the age of 40 years to avail a monthly pension of Rs. 1,000, he or she is required to contribute a higher amount than those joining at 18 years.
  3.  The subscribers must make regular contributions for a minimum of 20 years, depending on their age at entry and pension slab chosen.
  4. ➤ The prospective applicants of the APY scheme should have a valid mobile number and a bank account linked to their Aadhar number. This is an important requirement during the registration process and to get periodic updates on the APY account.

APY Contribution Chart

Subscribers can make monthly contributions as per below given chart. They are also entitled for making contributions on quarterly and half-yearly basis.

You can make a contribution of Rs 42 to 210 per month

image source: vikaspedia
For a pension of Rs 1,000 to Rs 5,000 per month, the subscriber will have to pay from Rs 42 to Rs 210 per month. This will happen when the plan is taken at the age of 18.
On the other hand, if a subscriber takes up the scheme at the age of 40, he will have to make a monthly contribution ranging from Rs 291 to Rs 1454.
The more the subscriber contributes, the more pension he will get after retirement. However, it should not exceed Rs 5,000. That is why the contribution will also be according to it.
How to open an account

You can open an account by going to any bank

  • You can download the Atal Pension Plan form online
  • You will have to fill up this form and deposit it in the bank branch
  • In addition, a photocopy of your mobile number and Aadhaar card will also have to be submitted.
  • You will receive a confirmation message after the application is approved.
  • An online account can be opened in SBI
  • Eligibility of the beneficiary of Atal Pension Scheme
The Atal Pension Scheme (APY) is for all Indian citizens between the ages of 18 and 40. To avail the benefits of this scheme, everyone has to pay the amount fixed by the government for at least 30 years. Any bank account holder who is not a member of any such social security scheme can avail this sch

No comments:

Post a Comment

Please Comment Your Questions, Queries or Suggestions