10 Lesser Known Facts About Atal Pension Yojana

Launched on 9^th June 2015, the Atal Pension Yojana scheme focuses mainly on the unorganized sectors of our society like household helpers, gardeners, delivery boys, etc. the main motive behind launching this scheme is that no citizen of India ever worries about accidents, illness, ailments in old age, etc. and have a financially secure future.

In this article, we will discuss some facts about Atal Pension Yojana that will be beneficial for you. So, let us dig in more to know some important facts about the scheme.

1. Eligibility Required

   Employers can apply for Atal Pension Yojana in the age range of 18-40. Only 1 account is eligible per person. To open an APY Account, an individual needs to have a savings account either in a bank or post office.

2. Contribution Frequency

   During the initial launch years of Atal Pension Yojana, the only option to pay APY contribution was on monthly basis. Now the options have increased to quarterly and half-yearly basis in addition to monthly basis.

3. Fixed Monthly Options

   Monthly pension alternatives are fixed under Atal Pension Yojana. They are 1000/- rupees, 2000/- rupees, 3000/- rupees, and 4000/- rupees respectively.

4. Tax Benefits

   Avail the benefit within Section 80CCD for the contributions made to the Atal Pension Yojana

5. Deposit Amount

   The amount selected to be deposited in Atal Pension Yojana Account can be as low as 42 rupees and up to 1,454 rupees. The amount chosen is withheld on a monthly, quarterly, or half-yearly basis from the subscriber’s account.

6. Guaranteed Pension

   Guaranteed pension is a fixed amount that the policyholder is assured to receive from the age of 60. The returns generated by the government may vary from time to time. If the accumulated corpus based on contribution is lower than the estimated returns, the central government funds such inadequacy. Also, if the accumulations are higher than the assumed returns for minimum guaranteed pension, the excess is passed to the policyholder.

7. Discontinuation

   As per the rules, the account will not be discontinued and closed till the account balance with self-contributions minus the Government co-contributions, if there is any, becomes zero due to deduction of account maintenance charges.

8. Penalty

   There is no such heavy penalty if one makes delayed payments in Atal Pension Yojana Account. A penalty of Rs 1 each month for the contribution of each Rs 100 or the part thereof. In case of default, one needs to regularize their overdue amount along with the penalty amount. Once regularized, the pension becomes guaranteed under the scheme.

9. Premature Exit

   Initially, premature exit from Atal Pension Yojana Scheme was not allowed except in case of death or any terminal disease of the policyholder. Now, the rules have changed and one can voluntarily exit from APY, subject to the following conditions:

   • Contribution along with net actual interest earned on the contribution will be made after deducting the account maintenance charges
   • If any co-contribution is to be made by the government, it will not be returned along with interest earned on the contribution

10. Premature Death

    In case of premature death, that is before the age of 60, the spouse has the option to continue Atal Pension Yojana for the remaining vesting period. The remaining period is calculated based on the age of the original policyholder. In case of the death of both policyholder and spouse, the pension corpus would be returned to the nominee.

Eligibility Criteria For Atal Pension Yojana

To avail the advantages of the APY scheme, the following key requirements need to be fulfilled:

• An Indian citizen must fall under the age bracket of 18 years to 40 years
• The contributions made should be for a minimum of 20 years
• The bank account needs to be linked with the Aadhar Card
• The mobile number should be valid

Anyone availing the advantage of Swavalamban Yojana will be registered automatically to the Atal Pension Yojana.

How to Apply For the Atal Pension Yojana?

To avail of the benefits of the APY, follow the steps mentioned below:

• All national banks offer APY Scheme. Anyone interested can visit the bank and begin with the Atal Pension Yojana
• Forms are available both online and offline. For offline, visit the official website and download the form
• The Atal Pension Yojana forms are available in Hindi, English, Marathi, Bangla, Kannada, Odia, Gujarati, Telugu, and Tamil
• In case the bank doesn’t have a valid contact number, make sure that the number is valid.
• Submit the photocopy of the Aadhar card.

Confirmation will be sent as soon as the application is approved.

Understanding the Monthly Contributions

The monthly contributions are on the premise of the sum of pension that one wishes to receive upon retirement and also at the age when one initiates contributing. See the table below to understand the scheme:

Wrapping Up

Earlier people thought that only rich people can afford a policy or scheme. The Atal Pension Yojana scheme is an attempt to provide financial protection to the working class of the lower unorganized sector. Helpful for people in their old age, this scheme gives a decent financial back-up and creates a safe retirement nest.