All You Need To Know About Atal Pension Yojana

Have your ever thought of your maid’s retirement life? What happens to them if they cannot work during their old age? To make things worse what if they don’t have anyone to depend on? People working in the unorganised sector should also have an opportunity to plan their retirement life. Apart from savings, a proper pension plan that promises regular monthly income is mandatory for every retired individual irrespective of their job or income group. Earning corporate professionals and government employees are not the only ones who have a financially sound retired life anymore. Atal Pension Yojana gives an opportunity to people working in the unorganised sector to plan for their retirement life by investing in a pension plan.

About Atal Pension Yojana

Atal Pension Yojana

Atal Pension Yojana was introduced in the year 2015 by Prime Minister Narender Modi. According to a survey, only 11% of Indian population had a pension plan. To increase this number and to help many citizens lead a peaceful retired life, Atal Pension Yojana was launched. Atal Pension Yojana is a government-backed pension plan that aims to enrol people working in the unorganised sector in a pension scheme. To encourage weaker section of the population to opt for this plan, the central government will also contribute 50% of the total contribution or Rs.1,000 per year (whichever is lower) for selected subscribers for a period of 5 years. Atal Pension Yojana plan will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana and monthly contributions will be debited automatically. This introduces people working in the unorganised sector to mainstream banking which will help in the economic development of India.

Eligibility to apply for Atal Pension Yojana

  • Applicants should be Indian citizens
  • Should have an active savings account in a bank. If they do not have a bank account they can create one under the Pradhan Mantri Jan Dhan Yojana scheme.
  • Applicants should have a mobile number to register for Atal Pension Yojana
  • Applicants should be between 18 to 40 years of age
  • Applicants should be working in unorganised sector

How does it work?

Atal Pension Yojana requires periodic contribution. Beneficiaries will in return get a fixed pension amount. The available pension amount they can choose are Rs.1,000, Rs.2,000, Rs.3,000, and Rs.5,000. The monthly contribution depends on the pension amount they wish to get every month after they retire. You will have to contribute regularly from the time you have applied for the scheme and continues till you reach the age of 60. Refer to the below table for more information on the contribution amount, tenure, and the pension amount you will receive.

Age when you join the scheme Years you contribute Contribution amount Fixed monthly pension received
18 years 42 years Rs.42 Rs.1,000
20 years 40 years Rs.50 Rs.1,000
25 years 35 years Rs.76 Rs.1,000
30 years 30 years Rs.116 Rs.1,000
35 years 25 years Rs.181 Rs 1,000
40 years 20 years Rs.291 Rs.1,000

Please note that under this plan, in case of the death of the subscriber, the nominee or legal heir will receive a one-time return of corpus amount of Rs.1,70,000.

Age when you join the scheme Years you contribute Contribution amount Fixed monthly pension received
18 years 42 years Rs.84 Rs.2,000
20 years 40 years Rs.100 Rs.2,000
25 years 35 years Rs.151 Rs.2,000
30 years 30 years Rs.231 Rs.2,000
35 years 25 years Rs.362 Rs.2,000
40 years 20 years Rs.582 Rs.2,000

Please note that under this plan, in case of the death of the subscriber, the nominee or legal heir will receive a one-time return of corpus amount of Rs.3,40,000.

Age when you join the scheme Years you contribute Contribution amount Fixed monthly pension received
18 years 42 years Rs.126 Rs.3,000
20 years 40 years Rs.150 Rs.3,000
25 years 35 years Rs.226 Rs.2,000
30 years 30 years Rs.347 Rs.2,000
35 years 25 years Rs.543 Rs.2,000
40 years 20 years Rs.873 Rs.2,000

Please note that under this plan, in case of the death of the subscriber, the nominee or legal heir will receive a one-time return of corpus amount of Rs.3,40,000.

Age when you join the scheme Years you contribute Contribution amount Fixed monthly pension received
18 years 42 years Rs.126 Rs.3,000
20 years 40 years Rs.150 Rs.3,000
25 years 35 years Rs.226 Rs.3,000
30 years 30 years Rs.347 Rs.3,000
35 years 25 years Rs.543 Rs.3,000
40 years 20 years Rs.873 Rs.3,000

Please note that under this plan, in case of the death of the subscriber, the nominee or legal heir will receive a one-time return of corpus amount of Rs.5,10,000.

Age when you join the scheme Years you contribute Contribution amount Fixed monthly pension received
18 years 42 years Rs.168 Rs.4,000
20 years 40 years Rs.198 Rs.4,000
25 years 35 years Rs.301 Rs.4,000
30 years 30 years Rs.462 Rs.4,000
35 years 25 years Rs.722 Rs.4,000
40 years 20 years Rs.1164 Rs.4,000

Please note that under this plan, in case of the death of the subscriber, the nominee or legal heir will receive a one-time return of corpus amount of Rs.6,80,000.

Age when you join the scheme Years you contribute Contribution amount Fixed monthly pension received
18 years 42 years Rs.210 Rs.5,000
20 years 40 years Rs.248 Rs.5,000
25 years 35 years Rs.376 Rs.5,000
30 years 30 years Rs.577 Rs.5,000
35 years 25 years Rs.902 Rs.5,000
40 years 20 years Rs.1454 Rs.5,000

How to apply for Atal Pension Yojana?

  • Visit the bank where you have your savings account
  • Ask the bank officers for an APY form
  • Fill the form carefully and give your Aadhar details
  • Do not forget to mention your mobile number
  • Make sure you have maintained the minimum balance in your account
  • Your monthly contribution will get deducted automatically from your account every month

Spread the word about Atal Pension Yojana to people you know are who are working in unorganised sector. It may help somebody live a peaceful retirement life.

 

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