Atal Pension Yojana Scheme which was discontinued has recently been extended by the Union Cabinet. Listed below are the details you need to know on the scheme.
Atal Pension Yojana is a pension scheme launched by the Government in 2015 that focuses on the unorganized sector, with the aim to provide pension to citizens like maids, drivers, gardeners and so on. Individuals aged between 18-60 years can invest in this scheme and earn fixed pensions. According to reports, about 1 Crore citizens have benefitted from this social security scheme. Due to its huge success, the Union Cabinet has extended the scheme and is considering a proposal to raise the pension limit to Rs 10,000 a month. The scheme also spans across individuals to households with revised terms and benefits.
The Atal Pension Yojana is a guaranteed pension scheme launched by the Union Government that aims to secure pension for the workers in the unorganised sector. The government has introduced this scheme to address the longevity risks associated with the workers in the unorganized sector and to encourage the workers in unorganized sector to voluntarily save for retirement.
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The scheme aims to cover individuals working in the unorganized sector and bring them under pension cover. The basic criteria of Atal Pension Yojana are the individual must be a citizen of India and also within the age group of 18-40 years to join the scheme. He/She should not be a part of any other social security scheme like the EPF. He also needs to have a bank account and proper identification proof to avail the benefits of this scheme.
To subscribe to this scheme, you must visit any nationalized bank or Post Office and fill the APY form. The individual also needs to submit authorized documents like address proof say Aadhaar, photographs, birth certificate and bank account number, along with branch name and the bank name. The individual also needs to submit his current mobile number, along with the registration form to receive regular updates and information regarding APY account balance through SMS.
See Also: National Pension System
The minimum pension offered under Atal Pension Yojana is Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 and Rs 5,000 a month. You get to choose the minimum pension, when you subscribe to the APY scheme. You get one of the pension amounts on attaining 60 years. The amount you get depends on the contributions.
With the aim to reach out to more people, the improved scheme comes with revised terms and benefits.
Atal Pension Yojana Tax benefit:Tax benefit will be given to the scheme holders under Section 80CCD on the contributions made.
Guaranteed pension: The government guarantees pension up to Rs 5,000 a month. If the actual returns on the pension contributions are higher, then the pension will also be higher.
Pension to the spouse: In case of death of the scheme holder, pension would be given to the spouse.
Corpus to the nominee: In case of death of both the APY scheme holder and spouse, the pension corpus will be returned to the nominee.
The Atal Pension Scheme helps workers save money for their old age during working years and guarantees returns post retirement. The benefits of this scheme can be availed if the below mentioned requirements are fulfilled:
To avail the benefits of the pension scheme you are required to contribute a monthly amount based on the pension plan that in turn promises a fixed amount of monthly pension of Rs 1000 to Rs 5000. Your monthly contribution depends on the fixed amount of monthly pensions that an individual wants, the age at which the person starts contributing and the number of years of contribution. The pension starts at the age of 60 years. Therefore, if a person joins the scheme at the age of 40 years, than the contributions made must be for a minimum tenure of 20 years to avail the benefits of the scheme. The following table demonstrates the contribution that needs to be made per annum based on age and the pension plan:
An individual willing to subscribe to this scheme, can visit any nationalized bank and avail the benefits of the scheme. He can also apply online. The forms are available in vernacular languages and need to be downloaded from the official website. As instructed, complete the documentation with proper information and submit at the branch along with a copy of the Aadhaar card and the current contact number. The applicant must have a savings bank account and must maintain sufficient balance in his/her savings account, for auto debit towards the Atal Pension Yojana each month.
Listed below are some important facts that you should know on the Atal Pension Yojana:
Closing the scheme before 60 years of age for any reason will mean the subscriber is entitled only to the contribution and interest earned on that amount. This will not include government’s contribution.
To subscribe for the government’s pension benefit scheme follow the below points:
How will I know if the pension scheme is activated?
You will receive an SMS alert on your registered mobile number, informing when the pension scheme is activated.
When is the last date to join the Atal Pension Yojana Scheme?
Any person between the age of 18 to 40 years can join the scheme. There is no last date to join the scheme. The applicant can submit an application before the 1st of June to join the scheme for the coming year.
What is the minimum and maximum age to join this scheme?
The minimum age to join the scheme is 18 years. The maximum age is 40 years. This is because the minimum period of contribution for the scheme is 20 years.
Is my money safe? Will the scheme be changed when the government changes?
The Atal Pension Yojana scheme is passed by the government of India in the budget session. The scheme will not be discontinued if there is a change in the Government, and the contributions made towards the scheme are safe. The succeeding Governments only have the right to change the name of the pension scheme.
Can I apply for APY online?
Currently there are no options to apply for this scheme online. The applicant must go to the bank, collect the form and submit the duly filled form to subscribe to this scheme.
Only SBI and ICICI bank is providing the net banking facility for APY.
What are the documents required to apply for the APY Scheme?
To subscribe to the Atal Pension Yojana, the applicant needs to fill the application form and attach a copy of the Aadhaar along with the form and submit it. No other documents are required for this scheme.
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