Atal Pension Yojana

Atal Pension Yojana targets the unorganized sector, a vital part of India’s workforce. It replaced Swavalamban Yojana, which offered uncertain pension benefits. Atal Pension Yojana ensures social security for older, low-income individuals, aiming to provide them with guaranteed benefits at age 60.

What is Atal Pension Yojana?

Atal Pension Yojana is a pension scheme launched by the Government of India in 2015. The objective of APY is to provide social security to the citizens, especially the underprivileged and unemployed.

Atal Pension Yojana (Atal Pension Yojana in Hindi) is a guaranteed pension scheme that promises a fixed monthly pension after 60 years.
It is available to citizens aged 18-40 years. Older citizens already covered by other pension schemes are not eligible.
People contribute to savings bank accounts by setting up recurring debits until they reach the age of 60 years

Key features

The scheme ensures a monthly pension ranging from Rs 1,000 to Rs 5,000.
The Government of India will chip in 50% of what the subscriber contributes annually, or Rs 1,000 per year, whichever is lower.
The government contributes to individuals who are not covered by any pension scheme and who do not pay income tax.
The government will contribute for up to 5 years for eligible participants.
Those who enrolled between June 1, 2015, and March 31, 2016, are eligible.

Objectives

The Atal Pension Yojana aims to safeguard citizens, especially those in the unorganized sector, from various adversities such as diseases and accidents.
Beneficiaries of the scheme will receive monthly payments determined by their savings over time.
In case of the beneficiary’s demise, their spouse will continue to receive the pension payments.
If both the beneficiary and their spouse pass away, a lump sum will be provided to the nominee designated by them.

Eligibility Criteria

The APY scheme is available to all citizens of India.
To be eligible, customers must be between 18 and 40 years of age.
The contribution level varies depending on when a subscriber enrolls; it is lower for early joiners and higher for those who join later.
You need to provide proof of possession and authenticate your Aadhaar along with giving your Aadhaar number.
The Aadhaar number must be provided for both the APY pension and savings account.
Aadhaar number is necessary for debiting contribution installments and crediting government co-contribution.

Benefits

If someone between the ages of 18 to 40 joins and contributes to the Atal Pension Yojana (APY), they’ll receive a fixed pension ranging from Rs 1000 to Rs 5000.
The contribution amounts will start low for those who join early and increase gradually over time.
If the subscriber passes away, their spouse will receive the same pension amount.
After the spouse dies, the nominees will receive the pension amount.
Contributions made to the Atal Pension Yojana (APY) are eligible for tax deductions, similar to contributions made to the National Pension System (NPS).
Tax benefits include an additional deduction of Rs 50,000 under section 80CCD(1).

Major Achievements

Atal Pension Yojana has had a wonderful journey of five years, as of May 9, 2020, the total enrollment under the scheme was 2,23,54,028.
About 50 lakh customers were enrolled in the first two years, which doubled to 100 lakh in the third year and 1.50 crore in the fourth year.
The scheme had enrolled around 70 lakh participants in the last financial year, 2020.
Apart from enrolling a record number of participants, the scheme has rolled out nationwide, with men outnumbering women in membership at a ratio of 57 to 43 in all states and union territories.
As of 30 April 2020, the total number of subscribers of NPS and Atal Pension Yojana has exceeded 3.46 crore.