Atal Pension Yojna Explained: Read This to Know Your Eligibility

The government started the Atal pension yojana to ensure that the poor people in the unorganized sector can rely on a regular pension after retirement. This program addresses the unorganized sector’s worries about longevity and encourages workers to save for retirement on their terms.

Key Takeaways

• Atal pension scheme was started to encourage the workers in the unorganized sector to save for their retirement voluntarily.
• In the APY scheme, people can get their monthly pension starting from 1000 and reaching up to 5000 per month.
• The government of India also contributes 50% of the contribution amount or Rs 1000 to the APY scheme.
• The Atal Pension Yojana’s major goal is to serve as a source of security and protection for citizens from uncertain income, poverty, accidents, and diseases, among other things.

What is Atal Pension Yojna?

People employed in the unorganized sector don’t get the perks that people in the organized sector get. There is no stability in their income, they don’t get job security, and there is no fixed pension. To combat this and provide people in the unorganized sector with a way of getting a fixed income after retirement, the Atal pension yojana was launched by the government of India in the 2015-2016 budget. The Pradhan Mantri pension yojana is the last name of the Atal Pension Yojana. Under this scheme, people who enrol in the Atal pension yojana are eligible to receive minimum monthly pensions of Rs 1000 to 5000 per month, depending on the contributions made by the subscribers. There is a security of minimum pension in this scheme. All citizens between the ages of 18 and 40 can enrol in the Atal Pension Yojana, and they will get a pension once they reach the age of 60. The Pension Fund Regulatory and Development Authority (PFRDA) backs the system, and banks around the country are offering subscriptions.

Atal pension scheme is a safe scheme for people, and there is no risk of losing investment. Another beneficial feature of this scheme is that Each NPS account registered in 2010-11, 2011-12, 2012-13, and 2013-14 would get a yearly contribution of Rs 1000 from the government. This benefit is offered to persons who contribute a minimum of Rs. 1,000 and a maximum of Rs. 12,000 every year. The money in the plan at the moment of withdrawal is tax-free.

Did You Know?

The amount put into the Atal Pension Yojana Account might be as little as 42 rupees or 1,454 rupees.

Eligibility for Atal Pension Yojna

To understand the eligibility of the Atal pension yojana, one must understand the definition of the unorganized sector. This is because people who are employed in the unorganized sector are the one who is eligible for this scheme. An unorganized sector is production or service-oriented enterprise owned by self-employed employees. Due to the informal and seasonal nature of work and the dispersed placement of businesses, wage-paid labour is typically non-unionized. This industry is characterized by low wages, insecure and irregular work, and a lack of protection from legislation or trade unions. Essentially, these are the eligibility criteria for enrolling into the Atal pension yojana:

• According to the Atal Pension Yojana guidelines, this plan is only available to people above 18. Because a 20-year minimum contribution term is required, the maximum age at which users can begin contributing to the pension system is 40.
• Enrollers must have an active mobile number.
• A legitimate bank account number must be linked to your Aadhaar card.
• You must submit relevant ‘Know Your Customer’ information.
• Enrollers must not already have an APY account.

Steps to Apply for APY

There are two ways to apply for the APY pension scheme, you can either visit your bank branch and fill out the required forms there, or you can avail the online banking facilities of your banks and fill out the Atal pension yojana details online. We will talk about both of these ways in this section. Follow these steps for offline application of the APY scheme:

• The plan is available at all nationalized banks. You may open an APY account with any of these nationalized banks.
• Forms for the Atal Pension Yojana are accessible online and at the bank. The form can be downloaded form the official Atal pension Yojana website.
• English, Hindi, Bangla, Gujarati, Marathi, Odia, Tamil, and Telugu are some of the languages accessible.
• Fill out the form and submit it to your registered bank.
• You are also required to supply a valid  registered mobile phone number.
• Next step is to get a photocopy of your Aadhaar card and send it in with your application.

To avail of the online method of applying online, you can go to the online platform of your registered bank and submit your apy login credentials. Many banks provide this facility of Atal pension yojana online login.

Atal Pension Yojna Contributions

The main factor determining your monthly contribution towards the Atal pension yojana scheme is the monthly pension you want to receive after retirement. Regardless of whether the pension scheme account was formed in a bank branch or online, the contribution for the APY pension scheme will be auto-charged from your bank account.

APY Contribution Chart

Users can change the amount they give every month; however, this option is only accessible once a year, in April. Customers will receive SMS alerts on their registered mobile phones with information about the status of their contributions. Aside from that, customers will obtain a statement of account. These are the contributions chart for your monthly APY contributions. They are divided into Rs 1000, 2000,3000, 4000,5000 monthly contributions.

Source: https://npscra.nsdl.co.in/nsdl/scheme-details/APY_Brochure.pdf

Benefits of APY Scheme

The government of India is very concerned for its citizens employed in the unorganized sector. They want to ensure that every citizen can benefit from a fixed pension under the Atal pension scheme. This scheme has many benefits; some of these benefits are :

• Subscribers in this scheme can avail of tax benefits. Individuals who make regular contributions to the Atal Pension Yojana are entitled to tax incentives u/s 80CCD.
• After reaching the age of 60, you can avail a fixed pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, or Rs.5,000 depending upon your contributions.
• The APY system is open to any of the nationalized banks.
• As soon as the subscribers reach the age of 60, they will begin receiving monthly pension.
• Employees in the private sector who do not get pension benefits are also eligible to register for the Atal Pension Yojana plan.
• In case of the untimely demise of an active policyholder, that person’s spouse has the option of claiming the contributions or continuing the scheme.
• There are no potential risks in this investment option.

Word to Remember

The pension fund regulatory and development authority of India falls under the jurisdiction of the Ministry of Finance. Pension Fund Regulatory and Development Authority is a regulatory agency in India that oversees and regulates pension funds.

Conclusion

Atal pension scheme is a pension scheme started by the government of India to provide a fixed source of pension for people working in the unorganized sector. It’s a great scheme to help people save for retirement. People can also avail tax benefits on their earnings u/s 80 CCD of the income tax act.

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