The Atal Pension Yojana is open to all bank account holders between the ages of 18-40.
Financial needs and aspirations for the future are two things people need to keep in mind while planning for their retirement. A stable stream of money is essential after one has stepped down from their job. For this, some rely on their pensions from workplaces. But, there is a section of people who are not eligible to receive any money upon retirement. For such individuals, there are a number of retirement savings or pension plans that can ensure a secure future by promising a steady income during their retirement years. A pension plan is a type of investment scheme that individuals usually enter when they are in their 30s. Over time, the venture accumulates a pool of funds which is later converted into a lump sum amount or regular pension payments. One such retirement savings plan is the central government-managed Atal Pension Yojana.
Here is everything you need to know about the Atal Pension Yojana:
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What is the Atal Pension Yojana?
A scheme regulated by the Pension Fund Regulatory Authority of India (PFRDA), the Atal Pension Yojana was launched with the aim to create a “social security system” for every Indian. The plan caters to mainly the poor, the underprivileged, and workers in the unorganised sector. With the option of making minimal and flexible contributions to APY, individuals will receive a monthly pension after the age of 60 years. The main objective of this scheme was to provide financial support and security to every Indian and help them tackle any sort of financial obligations that may crop up in their retirement years.
The Atal Pension Yojana contributions can be made monthly, quarterly, or on a half-yearly basis. The pension amount will be directly dependent on the contributions that they make.
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Atal Pension Yojana: Features and Benefits
1. The scheme is open to all bank account holders between the ages of 18-40.
2. Citizens who are income-tax payers shall not be eligible to join APY.
3. The subscriber shall receive the pension upon retirement age. After their death, the spouse will receive the same. After the demise of the spouse, the accumulated corpus will be returned to the nominee.
4. In case of premature death of the subscriber, the spouse can continue contributing to the APY account.
5. Subscriber can receive a minimum monthly pension of Rs 1,000 which can go up to Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000 based on his contributions.
6. Subscribers can flexibly increase or decrease their contributions to their pension accounts, based on their financial capacity.
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How to apply for the Atal Pension Yojana?
Every Indian bank across the country is empowered to initiate the opening of a pension account under the scheme. Here are the steps:
1. Go to the nearest bank where you have an account and ask for the APY application form.
2. Fill out the form with all the required information.
3. Submit it with the required documents.
One can also download the form from the banks’ websites or the Pension Fund Regulatory and Development Authority’s official website (PFRDA).
