Atal Pension Yojana crosses 80M enrollments: How to apply?
What's the story
The Atal Pension Yojana (APY), an Indian government-backed pension scheme for unorganized sector workers, has crossed the milestone of 80 million enrollments. The Pension Fund Regulatory and Development Authority (PFRDA) announced that more than 3.9 million new subscribers have joined the scheme in this financial year alone. APY is a voluntary and contributory scheme aimed at providing financial security to Indian citizens aged between 18-40 years. So, how to enroll? Let us see.
Pension details
Guaranteed monthly pension from age of 60
The APY scheme promises a guaranteed minimum monthly pension of ₹1,000 to ₹5,000 from the age of 60. The amount is paid to the spouse after the subscriber's death. If both die, the accumulated corpus till 60 years is paid to the nominee. However, if a subscriber exits before turning 60 years old, they only get their contributions and net actual income earned after account maintenance charges.
Tax benefits
Tax benefits under Section 80CCD(1)
The contributions made under the APY scheme are eligible for tax benefits under Section 80CCD(1), similar to the National Pension System (NPS). This makes it an attractive option for those looking to save on taxes while securing their financial future. The scheme also allows subscribers to choose one of three Central Recordkeeping Agencies (CRAs) - CAMS, KFin, or Protean eGov Technologies, to open and manage their APY account.
Account opening
How to open an APY account?
To open an APY account, interested individuals can visit their nearest bank or post office. The contributions are collected through auto-debit from the subscriber's savings account or post office savings account. This ensures a hassle-free process for subscribers and helps in maintaining regular contributions toward their pension fund.