This scheme comes with the option of getting a fixed pension ranging from Rs. 1,000 per month, up to Rs. 5,000 per month after reaching 60 years of age.
Atal Pension Yojana (APY) is a pension scheme aimed at the unorganized sector. The Atal Pension scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) and was launched in 2015. This scheme encourages people from the unorganized sector to voluntarily save for their retirement. Industry experts say opting for this scheme at an early age maximizes the benefit of the scheme, alongside minimizes the investment required to reach the desired goal.
This scheme comes with an option of getting a fixed pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000 after reaching 60 years of age. The pension amount is determined based on the individual’s age and the contribution they make.
Upon the contributor’s death, the contributor’s spouse can claim the pension, and in the case of death of both the contributor and his/her spouse, the accumulated corpus will be given to the nominee. Nevertheless, if the contributor dies before reaching 60 years of age, the spouse can choose either to continue the scheme for the balance period or exit the scheme and claim the corpus.
Application of APY
- Almost all nationalized banks provide the option to opt for Atal Pension scheme. Investors can visit any of these banks to start their APY account.
- The forms for Atal Pension Yojana are available both at the bank and online, which can be download from the official website. They are available in multiple languages such as English, Hindi, Bengali, Tamil, Gujarati, Marathi, Odia, Kannada, and Telugu.
- One needs to fill up the application form and submit it to their respective bank
- The contributors also need to give their valid mobile number, with a photocopy of their Aadhaar card
- Once the application is approved, the contributor will be sent a confirmation message
Here are the things you need to know about APY, before opting for this scheme:
- Age – The minimum age to start investing in this scheme is 18 years and goes up to the age of 40 years. The pension amount is payable after attaining 60 years of age.
- Amount – An individual can invest in the pension scheme and can earn a fixed amount ranging from Rs. 1,000 per month, up to Rs. 5,000 per month.
- Contribution – Depending on the age of entry and the pension slab chosen by the individual, the Atal Pension scheme’s contributions can vary from Rs. 42 to Rs. 1,454 per month. For instance, a person joining at 18 years of age to get a monthly pension of Rs. 1,000 has to contribute Rs. 42 per month, and for Rs. 3,000 as monthly pension he/she needs to contribute Rs. 126 per month.
- Eligibility and exit – To open an Atal Pension Yojana account, one needs to hold savings account with a bank. One holding the pension scheme can also make a premature exit before the age of 60 years, only under certain circumstances. For instance, in the event of the death or terminal disease one can make a premature exit, according to PFRDA.
- Additional benefits – The contributor gets a guaranteed minimum monthly pension ranging from Rs. 1,000 to Rs. 5,000 and which is received by the spouse after the death of the contributor.