Atal Pension Yojana: Your key to a secure future? Uncover the secrets of this game-changing savings scheme now!
Atal Pension Yojana (APY) is a government-sponsored pension plan launched in May 2015 with the aim of ensuring financial security for the working class citizens of India. The APY is part of the government's larger National Pension System (NPS), and it focuses on workers in the unorganized sector who have no access to formal pension schemes. In this curated blog, we will delve into the details of APY and explain its benefits, eligibility criteria, and how to enroll in the scheme.
Benefits of Atal Pension Yojana
The APY provides a range of benefits to workers in the unorganized sector. These benefits include regular income after retirement, family pension in the event of death of the subscriber, and a guaranteed minimum monthly pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000, depending on the contribution made by the subscriber and the age of joining the scheme.
The APY scheme is based on a defined benefit structure, which means that the benefits are based on the contributions made by the subscriber. The amount of pension is determined by the age of the subscriber at the time of joining the scheme, the contribution made by the subscriber, and the number of years they contribute to the scheme.
The APY is an attractive pension scheme because it is affordable, with contributions starting as low as Rs. 42 per month. Moreover, the scheme encourages subscribers to start saving early, which helps ensure they have a sufficient corpus to draw upon after retirement.
The key features of Atal Pension Yojana are:
• It is a voluntary, contributory pension scheme.
• It is open to all citizens of India in the age group of 18 to 40 years.
• The minimum monthly pension under the scheme is Rs. 1,000 and the maximum is Rs. 5,000.
• The subscriber can choose to contribute a monthly amount of Rs. 100, Rs. 200, Rs. 300, Rs. 500, Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 or Rs. 5,000.
• The government will contribute an additional 50% of the subscriber's contribution, up to a maximum of Rs. 100 per month.
• The subscriber will start receiving a monthly pension at the age of 60 years.
• The pension amount will be guaranteed by the government.
Eligibility Criteria of Atal Pension Yojana
The eligibility criteria for Atal Pension Yojana (APY) are as follows:
- You must be a citizen of India.
- Your age must be between 18 and 40 years.
- You must have a savings bank account with a bank or post office that is linked to your Aadhaar number.
- You must not be a member of any other pension scheme of the government or any other statutory body.
The minimum monthly contribution under APY is Rs. 50 and the maximum is Rs. 1,000. The amount of pension you will receive every month after you turn 60 years old will depend on the amount of contribution you make and the number of years you contribute.
For example, if you contribute Rs. 500 per month for 20 years, you will receive a monthly pension of Rs. 3,000 after you turn 60 years old.
Enrollment Process of Atal Pension Yojana
The enrollment process for Atal Pension Yojana is simple and can be done through any bank or post office. The subscriber needs to provide their Aadhaar card number, bank account details, and mobile number. They can choose the amount they wish to contribute and the desired pension amount. Once enrolled, the subscriber will receive confirmation of their contribution and the date from which their pension will begin.
To enroll in the APY scheme, the subscriber needs to follow the below-mentioned steps:
Step 1: Locate the nearest bank or post office:
One can enroll in the scheme through any bank or post office. The subscriber needs to locate the nearest bank or post office, which is authorized to enroll for the APY scheme.
Step 2: Submit Application form:
The subscriber needs to fill in the application form for enrolling in the APY scheme. The application form requires details such as name, age, bank account details, Aadhaar number, and choice of pension amount. Once the details are filled in, the subscriber needs to submit the form along with a photocopy of the Aadhaar card.
Step 3: Enrollment Confirmation:
After submission of the application form, the subscriber will receive an acknowledgment receipt. The subscriber needs to keep the receipt safe for any future reference.
Step 4: Contribution:
After enrollment, the subscriber needs to start contributing the chosen amount for the chosen pension. The contribution can be made monthly, quarterly, or half-yearly, as per the subscriber's preference. The contribution amount is automatically deducted from the subscriber's bank account.
Document Required for Atal Pension Yojana
The required documents for APY enrollment are:
• Proof of identity (e.g., PAN card, Aadhaar card, voter ID card)
• Proof of address (e.g., electricity bill, gas bill, water bill)
• Savings bank account or post office savings bank account statement
The toll-free number for Atal Pension Yojana is 1800 889 1030.