Know about Atal Pension Yojana
IndianMoney.com Research Team | Posted On Wednesday, March 11,2015, 11:49 AM
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For the growth and progress of India financial inclusion is a must. The poor people of our nation have no access to basic banking services and bringing banking to the unbanked is the motto of financial inclusion.
A Pension especially for those who work in the unorganized sector is a must and the Atal Pension Yojana is expected to take care of pension under financial inclusion.
Atal Pension Yojana a low cost pension scheme soon to be launched on 1st June 2015 aims to provide pension to those who work in the unorganized sector as this alone can provide social security to all Indians.
So what is this Atal Pension Yojana?
- You have to be between 18-40 years to subscribe to the Atal Pension Yojana. You have to contribute to this scheme for a minimum period of 20 years.
- The maximum age you can subscribe to the Atal Pension Yojana is 40 years as you have to make a minimum contribution for 20 years to the Atal Pension Yojana.
- You are not eligible to subscribe to the Atal Pension Yojana if you already enjoy the benefits of the Employee Provident Fund (EPF) and the Employee Pension Scheme (EPS).
- You must not be paying income tax to get the benefits of the Atal Pension Yojana.
See Also: National Pension System
When will you get the pension from the Atal Pension Yojana?
- You get a pension from the Atal Pension Yojana when you are 60 years of age.
- You could get a minimum pension of INR 1000 a month and a maximum pension of INR 5000 a month at the age of 60 years. If you invest in the Atal Pension Yojana at a younger age then you will get a higher pension on retirement.
- The amount of pension you get on retirement also depends on the amount you contribute to the Atal Pension Yojana.
What is special about the Atal Pension Yojana?
- If you subscribe to the Atal Pension Yojana before 31st December 2015 the Central Government would contribute up to 50% of the amount you subscribe or INR 1000 a year whichever is lesser for a time period of 5 years.
- The amount you get as a pension after 60 years of age is guaranteed by the Central Government. The scheme will be managed by the NPS and Governed by the PFRDA ( Pension Fund Regulatory and Development Authority).
How do you make your contributions to the Atal Pension Yojana?
The money you contribute to the Atal Pension Yojana has to be paid directly from your bank account. The direct auto debit (On your approval money is debited from your bank account) is the only way you can subscribe to the Atal Pension Yojana.
How much do you need to contribute to get a fixed monthly pension of INR 1000 for (You + Spouse) after you complete 60 years?
The Atal Pension Yojana promises to be a boon to the workers in the unorganized sector for those who have no access to the Employee Provident Fund and the Employee Pension Scheme.
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