Atal Pension Yojana Explained:Atal Pension Yojana (APY) is an important pension scheme launched by the Central Government in 2015, which aims to provide financial security to people working in the unorganized sector after retirement. The special thing about this scheme, brought keeping in mind the low-income people, is that even a very small amount of contribution made regularly can provide a decent monthly pension after retirement. The maximum monthly pension in this scheme is Rs 5000. But if both husband and wife join this scheme and make regular contributions, then both together can earn a regular income of Rs 10,000 every month after retirement.
Features and Benefits of APY
1. Government Guarantee : Atal Pension Yojana is better than many other retirement related schemes in many ways. Its biggest advantage is that the pension is guaranteed by the government.
2. Good pension with small contribution: On joining this scheme at the age of 18, if you contribute Rs 210 every month, then after the age of 60, you will start getting a monthly pension of Rs 5000. That is, if both husband and wife join the scheme, then both together can get a pension of up to Rs 10,000 per month.
3. Pension facility for spouse also:Another important benefit of this scheme is that if a member of the scheme dies, his/her spouse will continue to receive the same pension. Apart from this, after the death of both the husband and wife, the invested amount and the returns accumulated on it will be paid to their nominee.
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Why is APY a better option?
- Atal Pension Yojana is specially designed for low-income people and those working in the unorganized sector. This is an ideal scheme for people of this category.
- Under this scheme, the rate of guaranteed pension that the members get after the age of 60 years is better than other annuity based schemes, while the contribution amount is very less.
- Scheme members according to their capacityYou can choose a pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000 per month.
- The premium rate is decided according to the expected pension. The subscriber has to pay a nominal premium regularly on a monthly, quarterly or half-yearly basis till the age of 60 years.
- After the age of 60, the member gets monthly pension based on his contribution.
- The monthly contribution in APY is very nominal.
- If an 18-year old person wants to get a pension of Rs 1,000, he will have to pay only Rs 42 every month, which is the minimum monthly premium of this scheme.
- If a 40-year-old person wants to get a pension of Rs 5,000, he will have to pay Rs 1,454 per month, which is the maximum premium of this scheme.
- During the scheme, members can also change their premium amount to decrease or increase their pension amount, for which they have to submit an application.
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How to join APY?
The minimum age to join the scheme is 18 years and the maximum age is 40 years. To join APY, you can open an account by visiting any post office, major government or private banks. Apart from this, you can also open an APY account online through the eNPS portal. Under the new rules, income taxpayers cannot join this scheme. If a person is not an income taxpayer at the time of joining the scheme, but later becomes a taxpayer, then his membership will not be affected. But if a person does not give information about his being an income taxpayer at the time of joining the scheme and later it is found out that he has been a taxpayer, then his account will be closed.
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Atal Pension Yojana can be an important step towards a secure future for people of low income group. By joining it, members can make their retired life financially secure. Especially if both husband and wife join this scheme, then the pension received under APY can become an additional source of regular income after the age of 60 years.
