Atal Pension Yojana: The Atal Pension Yojana was introduced by the Government of India in the 2015-16 budget keeping in view the security of people falling under unorganized sector.
Under the scheme, there is a guaranteed minimum monthly pension for the subscribers ranging between Rs. 1000 and Rs. 5000 per month. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS architecture.
Here’s all you need to know about the Atal Pension Scheme:
Atal Pension Yojana: Eligibility
The government has made the Atal Pension Yojana’s eligibility criteria pretty simple, in order to encourage more investors to secure their retirement. The criteria are:
– All Indian citizens between the ages of 18 and 40 are eligible for the APY.
– Aadhaar will be the primary form of identification. Users need to provide their Aadhar number and mobile number.
Atal Pension Yojana: Highlights
• Under the APY, there is a guaranteed minimum monthly pension for the subscribers ranging between Rs. 1000 and Rs. 5000 per month.
• The benefit of minimum pension would be guaranteed by the GoI.
• GoI will also co-contribute 50% of the subscriber’s contribution or Rs. 1000 per annum, whichever is lower. Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not the income taxpayer.
• GoI will co-contribute to each eligible subscriber, for a period of 5 years who joins the scheme between the period 1st June 2015 to 31st December 2015. The benefit of five years of government Co-contribution under APY would not exceed 5 years for all subscribers including migrated Swavalamban beneficiaries.
• All bank account holders may join APY.
Atal Pension Yojana: Premium
The Atal Pension Yojana premiums are determined by the investor’s age. For example, an 18-year-old investor will pay a monthly premium of Rs 210 to receive Rs 5000 on a monthly basis after turning 60.
Whereas an investor who joins the program at the age of 40 will have to contribute Rs 1454 each month for the next 20 years in order to obtain a Rs 5000 monthly pension.
Atal Pension Yojana: Pension Options
Investors can choose from a range of pension options, including Rs 1000 per month, Rs 2000 per month, Rs 3000 per month, and Rs 4000 per month, in addition to the Rs 5000 monthly pension.
Atal Pension Yojana: Exit
- On attaining the age of 60 years: The exit from APY is permitted at the age of 100% annuitization of pension wealth. On exit, a pension would be available to the subscriber.
- In case of death of the Subscriber due to any cause: In case of death of the subscriber, the pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.
- Exit Before the age of 60 Years: Exit before 60 years of age is not permitted however it is permitted only in exceptional circumstances, i.e., in the event of the death of the beneficiary or terminal disease.
