Atal Pension Yojana

atal pension yojana

atal pension yojana

Atal Pension Yojana (APY) is a pension scheme launched by the Government of India in 2015, aimed at providing financial security to workers in the unorganized sector. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) and is available to individuals between the ages of 18 and 40 years

APY provides subscribers with a range of benefits, including a government co-contribution of 50% of the subscriber’s contribution or Rs. 1,000 per annum, whichever is lower, for a period of 5 years for eligible subscribers. The scheme is also portable, meaning that subscribers can continue to make contributions and receive benefits even if they relocate to a different city or state.

Table of Contents :

  1. Introduction
  2. Benefits of Atal Pension Yojana
  3. Objectives of Atal Pension Yojana
  4. Financial security in old age
  5. Objective of the scheme
  6. Eligibility Criteriaria
  7. Who is eligible for this scheme?
  8. Atal Pension Yojana Details
  9. Open Atal Pension Yojana Account
  10. Download APY form
  11. How to Fill APY Form
  12. APY Contribution Chart

Introduction

The scheme provides a fixed pension to subscribers from the age of 60 years until their death, and the same pension amount is provided to the spouse of the subscriber after the subscriber’s death. In case of the death of both the subscriber and the spouse, the accumulated pension corpus will be paid to the nominee.

APY is an important scheme that aims to provide social security and financial stability to workers in the unorganized sector, who may not have access to other pension schemes. By enrolling in the scheme, they can secure their financial future and ensure that they have a regular income in their old age.

The scheme has a range of benefits, including a government co-contribution of 50% of the subscriber’s contribution or Rs. 1,000 per annum, whichever is lower, for a period of 5 years for eligible subscribers. The scheme is also portable, meaning that subscribers can continue to make contributions and receive benefits even if they relocate to a different city or state.

The enrollment process for APY is simple and requires minimal documentation, making it easy for people to enroll in the scheme. The contribution amount for APY is affordable and varies based on the age of the subscriber and the desired pension amount. This makes it accessible to a wide range of people, including those in low-income groups.

Benefits of Atal Pension Yojana

Atal Pension Yojana (APY) provides a range of benefits to its subscribers, especially for workers in the unorganized sector who may not have access to other pension schemes.

Financial security in old age

APY provides a fixed pension to subscribers from the age of 60 years until their death, ensuring that they have a regular income in their old age. The amount of the pension depends on the amount of contribution and the age of the subscriber.

Financial security in old age is a crucial concern for many individuals. As people grow older, they often face a range of challenges related to retirement, such as decreased income, rising healthcare costs, and the need for long-term care.

Spousal

A spousal benefit is a Social Security benefit available to the spouse of a worker who has earned enough Social Security credits to be eligible for retirement or disability benefits. Spousal benefits can be up to 50% of the worker’s benefit amount, and are available even if the spouse has never worked outside the home or has not earned enough credits to qualify for their own Social Security benefits.

The spouse must be at least 62 years old and either currently married to the worker or divorced from the worker but was married to them for at least 10 years. If the worker is currently receiving retirement or disability benefits, the spouse can begin receiving spousal benefits as early as age 62, but the benefit amount will be reduced if they begin receiving benefits before their full retirement age (FRA). If the spouse waits until their FRA, they can receive their full spousal benefit amount.

Nominee

A nominee is a person who is designated to receive certain benefits or assets in the event of the death of the original owner. A nominee benefit is a benefit that is paid out to the nominee of an insurance policy or investment account when the original owner passes away.

In the case of an insurance policy, the nominee is typically designated by the policyholder when the policy is purchased. The nominee is usually a spouse, child, or other close family member, and they receive the sum assured of the policy upon the policyholder’s death.

The nominee benefit is paid out to the nominee without the need for probate, which can make the process of receiving the benefit quicker and less complicated.

In the case of an investment account, such as a mutual fund or stock trading account, the nominee is typically designated by the account holder when the account is opened. The nominee benefit ensures that the assets held in the account are transferred to the designated nominee upon the account holder’s death. Again, this process can be simpler and faster than going through the probate process.

Affordable contributions

Affordable contributions are payments made towards a financial goal that are within the means of the individual making the contributions. This is an important consideration when planning for retirement, saving for a down payment on a house, or investing in other long-term goals.

To determine what constitutes an affordable contribution, it’s important to consider one’s overall financial situation, including income, expenses, and other financial obligations. This can help determine how much can be reasonably set aside for contributions each month or year without causing financial strain.

One effective way to make affordable contributions is to establish a budget that includes both fixed expenses, such as rent or mortgage payments, and discretionary expenses, such as dining out or entertainment. This can help identify areas where expenses can be reduced or eliminated to make room for contributions towards financial goals.

Another approach is to automate contributions, such as setting up automatic deductions from a paycheck or automatic transfers from a checking account to a savings or investment account. This can help make contributions a regular and consistent part of one’s financial routine.

Objective of the scheme

Atal Pension Yojana is focused upon

1. Unorganized sector such as House Help, Gardeners, Delivery Boys etc.

2. Ensure a sense of security and protect the citizens from accidents, illness, diseases

Eligibility Criteria

All Indian citizens between the age of 18 to 40 years can enroll for pension after the age of 60 under the APY.

1. The individual applying for the benefit of the scheme must contribute for at least 20 years

2. The individual enrolled under Swavalamban Yojana will be migrated under Atal Pension Scheme automatically

Atal Pension Yojana Details

chart of apy

The following are some of the key features of the Atal Pension Yojana:

1. Available for subscription to all Indians in the age group of 18 years to 40 years.

2. Pension will start after the subscriber attains the age of 60 years.

3. Pension amount can be selected as monthly Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000 and Rs. 5000. Contribution amounts will be calculated accordingly.

4. Bank account is mandatory for the scheme and deposit amount is auto-debited from the account periodically.

5. Contributions made into the Atal Pension Yojana are eligible for tax deduction under Section 80 CCD.

How to Open Atal Pension Yojana Account?

Fill up and submit the APY registration form, at your local bank branch

1. Provide your bank account number, Aadhar No. and Mobile number

2. Your first contribution amount will be deducted from your linked bank account at the time of account opening.

3. Your bank will issue acknowledgment No./PRAN No. to you.

4. Subsequent contributions will be automatically deducted from your bank account

How to Download APY Form

atal pension yojana form

APY (Atal Pension Yojana) is a government-backed pension scheme aimed at providing a steady income to individuals after retirement. If you are interested in enrolling in the APY scheme, you can download the APY form from the official website of the scheme. Here are the steps to follow:

On the home page, click on the “Forms” tab on the top right-hand corner.

From the drop-down menu, select the “Atal Pension Yojana Subscriber Registration Form” option.

The form will be displayed on the screen. You can download the form by clicking on the “Download” button.

The APY form is available in PDF format. You can take a printout of the form and fill it up with the required details.

Once you have filled up the form, you can submit it at the nearest bank branch or post office that is authorized to offer the APY scheme.

Alternatively, you can also download the APY form from the website of your bank, if they offer the APY scheme. Some banks have their own version of the APY form, which can be downloaded from their website.

Q: What is Atal Pension Yojana?

Atal Pension Yojana (APY) is a government-run pension scheme aimed at providing a regular pension to unorganized sector workers such as maids, drivers, gardeners, etc.

Q: What is the benefit of APY?

Q: What is the benefit of APY?

Q: What is the minimum and maximum contribution under APY?

The minimum contribution under APY is Rs. 42 per month, while the maximum contribution is Rs. 5,000 per month.

Q: What is the tenure of APY?

The tenure of APY is from the age of 18 years to 60 years.

Q: Is there any penalty for delayed payment of contribution under APY?

Yes, a penalty will be charged for delayed payment of contribution under APY. The penalty amount ranges from Re. 1 to Rs. 10 per month depending on the contribution amount.

Q: Who is eligible for APY?

Any Indian citizen between the age of 18 and 40 years who has a savings account can join the APY

Apna Samaaj

Our mission at Apna Samaaj is to connect underprivileged communities in India with the resources and opportunities they need to thrive. We aim to create a comprehensive platform that provides access to welfare schemes from government bodies and NGOs, as well as private organizations, helping to bridge the gap between those in need and those who can provide support. Through our efforts, we strive to empower individuals and communities, drive economic growth, and make a positive impact on society.