Atal Pension Yojana
Every individual wants that when the time for their retirement comes, they have enough funds to live the rest of their lives peacefully. This is where a pension scheme exactly comes into play. A pension scheme provides such people (who are not earning anymore and have crossed a certain threshold of their age) with a monthly amount that they can use for their well-being.
The Need for Pension :
A pension scheme plays a vital role for any individual who is not earning anymore and depends upon other family members for his survival. Apparently, there can be many reasons why a person could need a pension. A few of these reasons are:
- The decline in the overall earning potential of a person
- The emergence of nuclear family culture
- Migration of earning members of the family to another city/country
- A rise in the overall cost of living
A Brief Intro :
Atal Pension Yojana is a government-backed scheme aimed to improve the lives of Indian citizens by financially supporting those who are living below the poverty line and are majorly working in the unorganized sector. The Atal Pension Yojana was mentioned during the Budget speech in 2015 by the then Finance Minister Arun Jaitley. Then on May 5, 2015, it was officially launched by Prime Minister Narendra Modi.
Individuals coming under the Atal Pension Yojana scheme will need to pay a very low premium. Accordingly, they will receive a premium after their retirement. However, it is mandatory for individuals to have an active savings account in order to avail the benefits of the scheme.
The best part about this scheme is that any person who is between 18-40 years of age and who has an active savings bank account can apply for this scheme.
Examples :
| Entry Age | Number of years of contribution | Monthly pension of Rs.1,000 and a return of corpus of Rs.1.70 lakh (Rs.) | Monthly pension of Rs.2,000 and a return of corpus of Rs.3.40 lakh (Rs.) | Monthly pension of Rs.3,000 and a return of corpus of Rs.5.10 lakh (Rs.) | Monthly pension of Rs.4,000 and a return of corpus of Rs.6.80 lakh (Rs.) | Monthly pension of Rs.2,000 and a return of corpus of Rs.3.40 lakh (Rs.)Monthly pension of Rs.5,000 and a return of corpus of Rs.8.50 lakh (Rs.) |
|---|---|---|---|---|---|---|
| 18 | 42 | 42 | 84 | 126 | 168 | 210 |
| 19 | 41 | 46 | 92 | 138 | 183 | 228 |
| 20 | 40 | 50 | 100 | 150 | 198 | 248 |
| 21 | 39 | 54 | 108 | 162 | 215 | 269 |
| 22 | 38 | 59 | 117 | 177 | 234 | 292 |
| 23 | 37 | 64 | 127 | 192 | 254 | 318 |
| 24 | 36 | 70 | 139 | 208 | 277 | 346 |
| 25 | 35 | 76 | 151 | 226 | 301 | 376 |
| 26 | 34 | 82 | 164 | 246 | 327 | 409 |
| 27 | 33 | 90 | 178 | 268 | 356 | 446 |
| 28 | 32 | 97 | 194 | 292 | 388 | 485 |
| 29 | 31 | 106 | 212 | 318 | 423 | 529 |
| 30 | 30 | 116 | 231 | 347 | 462 | 577 |
| 31 | 29 | 126 | 252 | 379 | 504 | 630 |
| 32 | 28 | 138 | 276 | 414 | 551 | 689 |
| 33 | 27 | 151 | 302 | 453 | 602 | 752 |
| 34 | 26 | 165 | 330 | 495 | 659 | 824 |
| 35 | 25 | 181 | 362 | 543 | 722 | 902 |
| 36 | 24 | 198 | 396 | 594 | 792 | 990 |
| 37 | 23 | 218 | 436 | 654 | 870 | 1087 |
| 38 | 22 | 240 | 480 | 720 | 957 | 1196 |
| 39 | 21 | 264 | 528 | 792 | 1054 | 1318 |
Frequently Asked Questions
-
Who can apply for Atal Pension Yojana?
- Indian citizens who are between 18-40 years of age can apply for the Atal Pension Yojana scheme. Contributions towards the scheme must be made for a minimum duration of 20 years by such individuals
- The best part is that people applying for this scheme don’t need to pay a hefty amount in premiums.
- Depending upon the contribution of the users of this scheme, a person would be eligible to avail monthly pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000 or 5,000.
-
If I have applied for Atal Pension Yojana, Can I apply for other savings schemes started and managed by the government?No, if you have applied for Atal Pension Yojana, you cannot apply for other savings schemes offered by the Indian government.
-
What are the essential documents required during the registration process of APY?To enroll under this scheme, the prospective applicant will need to provide their mobile number along with their Aadhaar during the time of registration.
-
I want to know for how many years the government will be co-contributing?The Indian Government will contribute for a period of 5 years. However, this was applicable starting from the financial year 2015-16 to 2019-20 for people who are not covered by any Statutory Social Security Scheme and who don’t pay income tax.
-
Who are the other social security schemes beneficiaries not eligible to receive Government co-contribution under the Atal Pension Yojana?People who are already benefitting from the following government schemes cannot avail benefits of the Atal Pension Yojana:
- Employees’ Provident Fund and Miscellaneous Provision Act, 1952
- The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948
- Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955
- Seamens’ Provident Fund Act, 1966
- Jammu Kashmir Employees’ Provident Fund and Miscellaneous Provision Act, 1961
- Any other statutory social security scheme
-
How to Open an APY Account?It is very simple to open an APY account:
- Visit your bank branch or post office where you have a savings account.
- Provide the staff with your savings account number and fill the APY form for registration.
- Provide your Aadhaar or Mobile Number.
- Keep the account running and maintain the required balance so that the amount under the APY
- scheme can be transferred to your account.
- Any other statutory social security scheme
-
Can I open my APY account without a savings bank account?No, a savings bank account is mandatory for joining the APY scheme.
-
How often can I make my contribution towards the account?You can make your contributions on a monthly/quarterly or half-yearly basis depending upon your age, budget and investing capacity.
-
Do I need to provide nominee details while applying for the scheme?Yes, it is mandatory to provide nominee details while applying for the APY account. In case the user is married, the spouse of the user will become the nominee by default. People who are unmarried can make anyone a nominee.
-
How many APY can I open?You can only open 1 APY account.
-
When can I withdraw money from my APY account?You can withdraw the amount upon turning 60 years of age. As you turn 60, you will need to submit the request to your respective bank account. In case of the death of the user, the nominee will become eligible to receive the amount by default.
-
Can I exit from the APY scheme before I turn 60?Generally, you cannot exit the APY scheme before 60 years of age. However, an early exit may or may not be permitted by PFRDA only in exceptional circumstances like death or terminal illness.
-
How will I get to know the status of my contribution made?You will be receiving SMS alerts for the same.
-
What will happen to all the existing subscribers in NPS-Lite/Swavalamban Yojana?All the users of the Swavalamban Yojana will be migrated to the APY scheme.