Highlights:
- Guaranteed Minimum Monthly Pension: Ranges from ₹1,000 to ₹5,000 per month.
- Government Co-Contribution: The central government will contribute 50% of the subscriber’s contribution or up to ₹1,000 per year, whichever is lower.
- Eligibility: Open to individuals aged 18 to 40 years under the Atal Pension Yojana.
Introduction
- Atal Pension Yojana is a pension scheme introduced by the Department of Financial Services under the Ministry of Finance.
- It became effective on June 1, 2015.
- The scheme is voluntary and requires periodic contributions from the subscriber.
- The Government of India guarantees a minimum monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000, based on the chosen contribution plan.
- Pension payments start once the subscriber reaches the age of 60.
- The Pension Fund Regulatory and Development Authority (PFRDA) administers the scheme.
- The central government contributes an amount equal to the subscriber’s contribution.
- Subscribers can make contributions on a monthly, quarterly, or half-yearly basis.
- The pension is provided for the lifetime of the subscriber.
- The contributed amount can be withdrawn at any time.
- Eligible individuals can apply for the Atal Pension Yojana by visiting their nearest bank branch.
Eligibility Criteria
- The beneficiary must be an Indian resident.
- The age of the beneficiary should be between 18 to 40 years.
- The beneficiary should have a Jan Dhan Bank Account or a Savings Bank Account.
- The bank account should be linked with the beneficiary’s Aadhaar number and mobile number.
Key Features of the Scheme
- Atal Pension Yojana is a social security scheme for all Indian citizens, particularly those working in the unorganized sector.
- The scheme aims to encourage workers in the unorganized sector to save for their retirement.
- With the policyholder’s consent, contributions are deducted automatically from their bank account in a single installment.
- Contributions must be made continuously from the time of joining until the subscriber reaches 60 years of age.
- Individuals above 40 years of age are not eligible to register under the scheme.
- It is necessary to link the subscriber’s Aadhaar card and mobile number with their bank account for updates.
- Enrollment can be done at any time of the year by submitting a form at a bank branch.
- Some banks offer online application facilities for Atal Pension Yojana.
- Registration can also be completed through the National Pension System Trust Portal.
How Does Atal Pension Yojana Work?
If you start investing early, say at 25 years of age, you will have to contribute for 35 years. If you start at 30 years, you will contribute for 30 years, and so on. The monthly premium is calculated based on your age and the desired pension amount.
For example:
-
- If you start at 25 years, your monthly contribution may be as low as ₹126 for a pension of ₹5000.
- If you start at 35 years, the premium increases, but it remains affordable compared to private pension plans.
Benefits of Atal Pension Yojana
-
- Guaranteed Pension After 60 Years
You will receive the fixed pension amount based on your plan—₹1000, ₹2000, ₹3000, ₹4000, or ₹5000 per month. - Pension for Spouse
In case the pension holder passes away, the spouse will continue receiving the same pension. - Lump Sum for Nominee
Upon the death of both the subscriber and their spouse, the nominee (children or legal heirs) will receive a lump sum amount (₹1 lakh to ₹10 lakh, depending on the plan). - Government Contribution
The government co-contributes to the scheme for eligible subscribers, ensuring your money grows faster. - Tax Benefits
Contributions to the scheme are eligible for tax deductions under Section 80CCD(1B) of the Income Tax Act.
- Guaranteed Pension After 60 Years
Documents needed
- Age Limit: 18 to 40 years
- Minimum Contribution Period: Until the age of 60
- Required Documents: Aadhar card, bank account details, and registered mobile number
- Where to Apply? You can enroll in APY at any post office or bank (government or private) where you have a savings account.
Exit Guidelines for Atal Pension Yojana
Exiting the Atal Pension Yojana before reaching the age of 60 is generally not allowed. However, exceptions are made in specific cases, such as the death of the subscriber or in instances of terminal illness or a specified medical condition.
Upon reaching 60 years of age, subscribers can exit the scheme with 100% annuitization of their pension wealth, ensuring a steady pension income.
- Pension Commencement: The pension begins once the beneficiary attains 60 years of age.
- Death of the Subscriber: If the subscriber passes away, the spouse will continue receiving the pension.
- Death of Both Subscriber and Spouse: If both the subscriber and the spouse pass away, the accumulated pension corpus will be returned to the nominee.
This policy ensures financial security for the subscriber and their family, making Atal Pension Yojana a reliable retirement plan.
State Toll Free Numbers of Atal Pension Yojana
Following are the State Wise Toll Free Numbers of Atal Pension Yojana :-
| State Name | Convenor Bank | Toll Free Number |
|---|---|---|
| Andhra Pradesh | Andhra Bank | 18004258525 |
| Andaman & Nicobar Island | State Bank Of India | 18003454545 |
| Arunachal Pradesh | State Bank Of India | 18003453616 |
| Assam | State Bank Of India | 18003453756 |
| Bihar | State Bank Of India | 18003456195 |
| Chandigarh | Punjab National Bank | 18001801111 |
| Chhattisgarh | State Bank of India | 18002334358 |
| Dadra & Nagar Haveli | Dena Bank | 1800225885 |
| Daman & Diu | Dena Bank | 1800225885 |
| Delhi | Oriental Bank of Commerce | 18001800124 |
| Goa | State Bank of India | 18002333202 |
| Gujarat | Dena Bank | 1800225885 |
| Haryana | Punjab National Bank | 18001801111 |
| Himachal Pradesh | UCO Bank | 18001808053 |
| Jharkhand | Bank of India | 18003456576 |
| Karnataka | Syndicate BankSLBC | 180042597777 |
| Kerala | Canara Bank | 180042511222 |
| Lakshadweep | Syndicate Bank | 180042597777 |
| Madhya Pradesh | Central Bank of India | 18002334035 |
| Maharashtra | Bank of Maharashtra | 18001022636 |
| Manipur | State Bank of India | 18003453858 |
| Meghalaya | State Bank of India | 1800 345 3658 |
| Mizoram | State Bank of India | 18003453660 |
| Nagaland | State Bank of India | 18003453708 |
| Odisha | UCO Bank | 18003456551 |
| Puducherry | Indian Bank | 180042500000 |
| Punjab | Punjab National Bank | 18001801111 |
| Rajasthan | Bank of Baroda | 18001806546 |
| Sikkim | State Bank of India | 18003453256 |
| Telangana | State Bank of Hyderabad | 18004258933 |
| Tamil Nadu | Indian Overseas Bank | 18004254415 |
| Uttar Pradesh | Bank of Baroda | 18001024455 |
| 1800223344 | ||
| Uttarakhand | State Bank of India | 18001804167 |
| West Bengal and Tripura | United Bank of India | 18003453343 |
Why You Should Not Ignore Atal Pension Yojana
- Many people believe that a pension of ₹5000 won’t be valuable in the future. However, during old age, any regular income is better than none.
- It provides financial independence in old age, ensuring you don’t have to rely on your children or relatives.
- Even if you have other investments like fixed deposits, gold, or property, APY acts as a backup.
- Your contribution is minimal, but the long-term benefits are substantial.
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