#PolicyExplainer: Get upto Rs. 60,000/year post-retirement with Atal Pension Yojana
India is a "young" country with youth accounting for over 50% of the population. But once this young population starts aging, India may face a critical challenge because of an "unpensioned society" as over 90% of Indians aren't covered under any pension scheme.
To address this, the government launched Atal Pension Yojana (APY), an affordable scheme for every Indian.
Here's everything about the scheme.
About the government's 'Atal Pension Yojana'
About the Atal Pension Yojana
Though the scheme focuses on the unorganized sector and those with low or no fixed income, it is open to all the citizens fulfilling the eligibility criteria.
APY replaced the previous Swavalamban Yojana announced in the 2010 Budget.
Who is eligible for the scheme?
APY is an affordable govt-backed old-age income security plan. In order to be eligible for the scheme, one must be an Indian citizen aged 18-40 years. The subscribers should also hold a valid account either with a bank or post office.
Love India news?
Stay updated with the latest happenings.
How to apply for Atal Pension Yojana?
Those interested in applying for APY can approach the bank or post office they hold an account with and fill up the registration form.
However, several major banks, including State Bank of India and ICICI Bank, also offer online APY enrollment option through the net banking service.
One can call the toll-free number of Atal Pension Yojana - 1800-110-069 - in case of queries.
You can join APY online with Aadhaar
People can submit their APY application online with Aadhaar on National Pension System's central recordkeeping agency NSDL's website. On the homepage, click on "Open Your NPS Account/Contribute Online" option (top-right corner) and select "APY Application" from the list on right and submit the required details.
What is the mode of payment?
Subscribers will make payments to the pension scheme periodically (monthly, quarterly, or half-yearly); the amount would be debited automatically from their account.
So, to avoid late payment charges, APY subscribers will have to maintain enough balance before the amount is deducted on the due date.
Delayed payments attract an overdue interest of 1% per month which is levied on the pending amount.
How much do you contribute and receive under APY?
APY subscribers receive a monthly pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 or Rs. 5,000, post retirement (after turning 60).
The pension amount depends on the contribution (starting at just Rs. 42/month) and the age at which one enrolls.
The Center makes a yearly co-contribution for eligible subscribers, amounting to 50% of their annual contribution or Rs. 1,000, whichever is lower.
Subscriber's minimum contribution amount depends on age, required pension amount
Under APY, an 18-year-old needs to make contributions for 42 years while a 39-year-old, for 19 years (until they turn 60).
However, the minimum contribution amount increases with age (at the time of registration). The earlier one starts contributing, the more they save.
I am 42 now. Can I apply for APY?
Asked on 13-08-2018 by Vineeta Sharma
Answered by NewsBytes
No, you can't apply for Atal Pension Yojna because as per the eligibility criteria on the official website, the maximum age limit to apply for this scheme is 40 years.
I have a pf account already. Can I join APY?
Asked on 13-08-2018 by Sonu Kalla
Answered by NewsBytes
Yes, you can join APY even when you are enrolled in other social security schemes. The eligibility criteria of APY is that your age should be between 18-40 years and you should have a saving bank account.
Always wanted to do film that brings national pride: Ranveer
#CareerBytes: 7 scholarships for engineering, medical students offered by government