Atal Pension Yojana 2023:-In today’s world, everyone is worried about financial security. That’s why the Government of India has started the Atal Pension Yojana. So that you can save yourself from future expenses.
Government-sponsored savings schemes such as the Atal Pension Yojana have gained popularity because of this uncertainty.
In this article, we will explain the details of Atal Pension Yojana, its features, benefits, and eligibility criteria. Additionally, we will provide real-world examples of how this scheme can make a positive impact on the lives of ordinary citizens.
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Table of Contents
Objectives of Atal Pension Yojana:-
The primary objective of the Atal Pension Yojana is to provide a steady stream of income to individuals during their old age. It aims to ensure that citizens, particularly those employed in the unorganized sector and who may not have access to formal pension plans, have a safety net for their retirement years.
What is Atal Pension Yojana (APY)?:-
Atal Pension Yojana, commonly known as APY, is a government-backed pension scheme launched by the Government of India in June 2015. Launched with the aim of providing permanent pension income to individuals in the unorganized sector. If you want to make a pension plan for your old age with low investment, then Atal Pension Yojana can be the best option for you. Under the Atal Pension Yojana, people get a guaranteed amount of Rs 1,000 and Rs 5,000 per month after the age of 60 years. Any person up to the age of 40 years can apply for this government scheme.
Key Features of (Atal Pension Yojana) APY:-
Age Requirement: –Any citizen of India between the ages of 18 to 40 years can enroll in APY.
Pension Amount:- The scheme offers a fixed pension amount ranging from Rs. 1,000 to Rs. 5,000 per month, depending on the contribution.
Contribution Period:- Subscribers must contribute for at least 20 years to be eligible for the pension.
Guaranteed Returns:- APY provides a guaranteed minimum pension amount to subscribers.
To avail of the benefits of APY, you need to meet the following eligibility criteria:
- You must be an Indian citizen.
- Your age should be between 18 and 40 years.
- You should have a savings bank account.
- It’s essential to have a mobile number and a valid Aadhar card.
The contribution amount in APY depends on the pension amount you wish to receive and your age at the time of enrollment. The sooner you enroll, the lower your monthly contribution will be.
Benefits of Atal Pension Yojana:-
Financial Security:- APY provides financial stability during your retirement years.
Guaranteed Pension:- This scheme guarantees a fixed pension amount while ensuring peace of mind.
Tax Benefit:- Contributions made to APY are eligible for tax deduction under section 80CCD.
Easy Enrollment:- The enrollment process is straightforward and can be done through banks or post offices.
How to apply for Atal Pension Yojana:-
Enrolling in APY is a simple process:
- You should have a savings account, if not then you can open a savings account by going to your nearest bank. You can open your account in any private bank / public bank or post office. Like SBI, Canera, Kotak etc. Your Aadhar card should be linked to this bank account. You should also have an active mobile number. Because the information about APY will come on your mobile only.
- Fill out the APY registration form and enter the name of your nominee
- Provide your Aadhaar number and mobile number.
- Select your desired pension amount and contribution period.
- Your contribution amount will be auto-debited by the bank.
- You can give your passion contribution amount monthly, quarterly, or half-yearly.
Certainly! Here’s a simplified investment table for Atal Pension Yojana (APY) based on different age groups and the corresponding monthly contributions required to achieve varying pension amounts:
|Age Group (Years)||Chosen Monthly Pension (Rs.)||Monthly Contribution (Rs.)|
Please note that this table provides a simplified overview of the monthly contributions required to achieve different pension amounts under APY. The actual contribution amounts may vary slightly based on specific age and joining conditions.
If the Atal Pension Yojana holder dies:-
- If the Atal Pension Yojana holder dies, if the age of the account holder is less than 60 years, then his partner will continue to get this premium and will start getting a pension after 60 years.
- His partner or nominee can also withdraw this amount. Or you can also do a premium continuation.
- If the age of the account holder is more than 60 years, then his partner will continue to get a pension.
- If both of them die, the nominee will get the amount, e.g. if the account holder has chosen the pension option of Rs 1,000, then the nominee will get Rs 1.7 lakh, if the pension option of Rs 2,000 has been chosen, he will get Rs 1.7 lakh Will meet. 3. 4 lacs, if the 3000 passion option is chosen he will get 5.1 lacs, if the 4000 passion option is chosen he will get 6.8 lacs, if the 5000 passion option is chosen he will get 8.5 lacs,
Risks and Challenges:-
- If you default on APY payments then you will have to pay a penalty. APY payments are auto debited. The bank will charge you this penalty. This fine can be from Rs.1 to Rs.10.
- If you default your account for 6 months, your account will be frozen. If you default your account for 12 months, then your account will become inactive. If you default your account for 24 months, your account will be closed.
APY Account Charges:-
You will have to pay a charge of Rs 15 while opening the account. And you will have to pay annual charges of Rs 15 to 25. It may also be different according to different banks.
Other important facts:-
- It is mandatory to provide enrollment details in the APY account. If the customer is married, the spouse will be the default nominee. Unmarried customers can nominate any other person as a nominee but after marriage, they will have to provide details of their spouse. Aadhaar information of spouse and nominee can be provided.
- A subscriber can open only one APY account and it is unique. Multiple accounts are not allowed.
- A subscriber can opt to increase or decrease the pension amount once a year.
- APY subscribers will be informed from time to time through SMS alerts regarding the activation of PRAN, balance in the account, contribution credit, etc. The customer will also be given a physical statement of account once a year.
- Annual physical statements of APY will also be provided to subscribers.
- Contributions can be remitted through auto debit without any hindrance even in case of a change of residence/location.
- The scheme is only for Indian citizens.
- The customer can change the mode (monthly/quarterly/half yearly) of the auto-debit facility once a year during the month of April.
Can I open multiple APY accounts?
No, a subscriber can only have one APY account.
What happens if I miss a contribution?
If you miss a contribution, you will be penalized. The penalty amount depends on your contribution amount and the delay.
Can I exit the scheme before the retirement age?
Yes, you can exit the scheme before the retirement age, but only under certain conditions. The entire accumulated corpus will be returned to you.
Is there a provision for a nominee in APY?
Yes, you can nominate a family member who will receive the pension in case of your demise.
Can I increase my pension amount during the scheme tenure?
No, you cannot increase the pension amount once you have enrolled. The pension amount is fixed at the time of enrollment.