The Atal Pension Yojana scheme helps the debilitated section of society to save up for their old age and get a guaranteed monthly pension amount. Under this plan, the subscriber will receive a fixed pension after the age of 60, depending on his contribution amount and tenure. This scheme was introduced by the government of India in June 2015. The Atal Pension Yojana is administered by the PFRDA (Pension Fund Regulatory and Development Authority) under the National Pension System (NPS). The scheme was launched to encourage individuals from the weaker section to opt for pension, which would immensely benefit them during their old age. It is also very beneficial for the individuals who are working in private sectors or self-employed.
The advantage of Atal Pension Yojana
- A fixed monthly pension amount starting from Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000 and up to Rs. 5000 can be received by subscribers, every month after their retirement at the age of 60, until the death of the subscriber.
- After the death of the account holder, the spouse will be entitled to get the exact same pension amount as the subscriber, until the death of the spouse.
- The nominee will receive the entire pension amount accrued by the account holder after the death of the subscriber and his spouse.
- This fixed pension amount varies yet again with the contribution the subscriber has made previously.
- To get the maximum benefit from the Atal Pension Yojana scheme, individuals should join this plan at the age of 18 and contribute, until they turn 40. Depending on this, the maximum period of contribution would be 20 years or above.
The government of India’s co-contribution scheme
In order to motivate more number of citizens to open an Atal Pension Yojana account, the Government of India will also be contributing a sum towards the pension scheme for a time period of five years, i.e., from 2015 to 2020. This contribution will be done to Atal Pension Yojana subscriber accounts that have been opened between June 1, 2015, and December 31, 2015. These customers should not be income taxpayers and should not have been covered under any Statutory Social Security Schemes.
The Government of India’s contribution is either 50% of the subscriber’s monthly contribution amount or Rs. 1000, whichever is lower, for the tenure of five years. It is essential that to receive the Government’s contribution, the Atal Pension Yojana subscriber has to make regular monthly contributions during the entire course of the year. Only then will the Government of India credit 50% of the monthly contribution paid, to the subscriber’s account.
Eligibility criteria for Atal Pension Yojana-
Citizens of India are eligible to join the Atal Pension Yojana scheme. The following eligibility criteria have to be met by every applicant.
- Customers holding valid savings accounts are eligible to open an Atal Pension Yojana account.
- The applicant should be aged between 18 and 40 years.
- Every applicant should have a mobile number, which has to be registered at the time of application.
- A co-contribution amount will also be given by the Government to certain Atal Pension Yojana subscribers.