Atal Pension Yojana Objectives, Form, Eligibility, and Benefits

Objectives, Form, Eligibility, and Benefits of the Atal Pension Yojana:- The Atal Pension Yojana (APY) Is A Pension Scheme Launched By The Government Of India To Benefit Individuals, Particularly Those Working In The unorganized Sector. The Swavalamban Yojana, a previous government scheme, was replaced by the scheme, which was launched in 2015. The overarching goal of this scheme is to provide people in their old age with social and financial security by allowing them to save regularly during their productive years.

Atal Pension Yojana
Atal Pension Yojana

The Atal Pension Yojana aims to provide a minimum guaranteed monthly pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, and Rs. 5,000 after the age of 60. Apart from workers in the unorganized sector, for whom the scheme is extremely beneficial, employees in the private sector can also apply for APY to take advantage of its numerous benefits. The pension amount will be determined based on the age of the subscriber and the amount of contributions made by him or her.

The Pension Funds Regulatory Authority of India (PFRDA) manages the APY collected. The Central Government also contributes 50% of the total contribution, or Rs. 1,000 per year, whichever is less, to each eligible subscriber who joined the scheme before December 31, 2015, during the fiscal years 2015-16 to 2019-20.

The following are the advantages of the Atal Pension Yojana:

  • The Atal Pension Yojana Is An Excellent Individual savings Scheme That Provides Ample Benefits At A Time When A Person’s Income-Earning Capacity Is Low. Savings from this scheme enable people to deal with rising living costs and live a dignified life even after retirement. Some of the benefits of APY are as follows:
  • Subscribers can choose to increase their premiums and look forward to receiving large monthly pension amounts ranging between Rs. 1,000 and Rs. 5,000 by making significant contributions.
  • Subscribers receive regular updates, such as contribution status, via SMS alerts and physical account statements.
  • The account is portable and will be linked to a bank account, allowing the subscriber to access it from anywhere in the country.
  • APY Is An Affordably Priced Scheme That Is Available At An Ultra-Low-Cost, With Investments Starting As Low As Rs. 42 Per Month If You Are Over The Age Of 18.
  • It is governed by the PFRDA, which has transparent investment guidelines. Money contributions made by APY subscribers are kept secure.
  • Individuals can claim an income tax benefit of up to Rs. 1.5 lakh at the time of investment under Section 80C of the Income Tax Act of 1961. Furthermore, they are eligible for deductions of up to Rs. 50,000 under Section 80CCD (1B).

Eligibility for the Atal Pension Yojana

Individuals Must Meet The Following Eligibility Criteria To Avail The Multiple Benefits Of The Atal Pension Yojana Scheme:

Subscribers to the Atal Pension Yojana Scheme must be Indian citizens.

Individuals applying for the scheme must be at least 18 years old and no older than 40 years old. If a person joins at the age of 40 to receive a monthly pension of Rs. 1,000, he or she must contribute more than those who join at the age of 18.

Subscribers Must Make Regular Contributions For At Least 20 Years, Depending On Their Age At Entry And Pension Slab Selection.

Prospective APY Scheme Applicants Must Have A Valid Mobile Number And A Bank Account Linked To Their Aadhar Number. This Is A Required Field During The Registration Process And To Receive Periodic Updates On The APY Account.

ATAL PENSION YOJANA HIGHLIGHTS

  • The APY provides users with a guaranteed minimum monthly pension ranging from Rs. 1000 to Rs. 5000 per month.
  • The Government of India would guarantee the benefit of a minimum pension.
  • GoI will additionally match 50% of the subscriber’s contribution, or Rs. 1000 each year, whichever is less. For people who are not covered by any Statutory Social Security Schemes and are not income taxpayers, the government will make a co-contribution.
  • GoI will co-contribute to any qualifying subscriber who joins the scheme between June 1st, 2015,¬†and December 31st, 2015, for a term of five years.
  • For all subscribers, including migrated Swavalamban beneficiaries, the benefit of five years of government co-contribution under APY will not exceed five years.
  • APY is open to all bank account holders.

Charges for Atal Pension Yojana Default

Banks are required to charge an additional sum for late payments, which ranges from Rs 1 per month to Rs 10 per month, as stated below:

  • Rs. 1 per month for monthly contributions up to Rs. 100.
  • Re. 2 per month for contributions ranging from Rs. 101 to Rs. 500 per month.
  • 5 per month for contributions ranging from Rs 501/- to Rs 1000/- each month.
  • Rs. 10 per month for contributions over Rs. 1001/- every month.

Subscribers should be aware of the following important information:

Failure to pay the contribution amount will result in the following:

  • The account will be frozen after 6 months.
  • The account will be terminated after 12 months.
  • The account will be terminated after 24 months.

Exit : Atal Pension Yojana
On Attaining The Age Of 60 Years:
The Exit From Atal Pension Yojana Is Permitted At The Age Of 100% Annuitization Of Pension Wealth. On Exit, a Pension Would Be Available To The Subscriber.

In the event of the death of the subscriber due to any cause:
In Case Of The Death Of the Subscriber Pension Would Be Available To The Spouse And On The Death Of Both Of Them (Subscriber And Spouse), The Pension Corpus Would Be Returned To His Nominee.

Exit Before The Age Of 60 Years:
Exit Before 60 Years Of Age Is Not Permitted; However, It Is Permitted Only In Exceptional Circumstances, I.E., In The Event Of The Death Of The Beneficiary Or Terminal Disease.

Atal Pension Yojana Contribution Chart

Subscribers can make monthly contributions as per the below-given chart. They are also entitled to make contributions on a quarterly and half-yearly basis.

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