What is Atal Pension Yojana? Know how to apply

Atal Pension Yojana (APY) is a government-backed pension scheme launched in 2015 under the Ministry of Finance. The scheme primarily targets the unorganized sector, providing financial security to employees during their retirement. Here’s a detailed overview of APY, its benefits, eligibility, and application process.

WHAT IS ATAL PENSION YOJNA?

Atal Pension Yojana aims to offer a stable income to individuals after 60 years of age by ensuring a secure retirement. It encourages low-income workers to save for their future through regular contributions.

The scheme guarantees a fixed pension of Rs 1,000 to Rs 5,000 per month, depending on the subscriber’s contribution and age of admission.

Key points of the scheme:

1. Voluntary and flexible: Subscribers can choose the contribution amount depending on the desired pension.

2. State guarantee: The scheme provides a fixed amount of pension upon retirement.

3. Joint pension benefit: In case of death of the subscriber, the spouse receives the pension and in case of death of the spouse, the nominal beneficiary receives the corpus amount.

WHO IS ELIGIBLE TO RECEIVE ATAL PENSION YOJANA

To register with APY, individuals must meet the following criteria:

1. Age limit: The subscriber must be between 18 and 40 years old.

2. Bank account: A savings bank account is required for automatic deduction of contributions.

3. Income category: Open to all citizens, but especially useful for workers in the unorganized sector.

4. Exceptions: Individuals who already pay income tax or are covered by other statutory social security schemes cannot benefit from government participation.

HOW TO APPLY FOR ATAL PENSION YOJNA?

Applying for APY is a simple process:

1. Step 1: Visit your nearest bank or post office offering this scheme.

2. Step 2: Complete the APY registration form available at the bank.

3. Step 3: Provide your Aadhaar card, savings account details and mobile number.

4. Step 4: Select the desired pension amount and authorize automatic debit from your account.

Additionally, many banks offer online registration through their mobile apps or internet banking platforms.

CONTRIBUTION AND PENSION DETAILS

• The contribution amount varies depending on the age of the subscriber and the desired pension amount.

• For example, a 20-year-old who opts for a monthly pension of Rs 5,000 will contribute Rs 291 per month, while a 35-year-old will have to contribute Rs 902 per month.

• Contributions are debited automatically, ensuring a hassle-free process.

BENEFITS OF ATAL PENSION YOJNA

1. Low investment, high profit: Designed to be accessible to low income groups.

2. Tax benefits: Contributions are eligible for tax deduction under Section 80CCD.

3. Lifetime Security: Provides a stable income to the subscriber and his family.

4. Flexible exit options: Partial withdrawal is allowed under certain conditions.

WHY CHOOSE ATAL PENSION YOJNA?

With increasing income uncertainty in old age, APY is a smart financial instrument, especially for those working in the unorganized sector. This not only ensures financial independence, but also ensures a decent life after retirement.