Introduction to Atal Pension Yojana
Atal Pension Scheme: In India, If we take a pension scheme that is backed by the Government, then Atal Pension Yojana – Atal Pension Scheme is one of the biggest and most important pension scheme in India.
Atal Pension Scheme (APY) is also an important pension scheme or government-backed scheme about questions that could be asked in competitive examinations in India such as UPSC Prelims, UPSC mains, SSC, SSB, CAT & many more. If you are preparing for government exams in India or Willing to enhance your knowledge about government schemes in India, then this blog going to help you in & out.
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Atal Pension Yojana Details
Aspect |
Information |
Scheme Name |
Atal Pension Yojana (APY) |
Launch Date |
Launched in 2015. |
Eligibility Age |
Between 18 to 40 years of age. |
Retirement Age |
60 years |
Minimum Period of Contribution |
20 years |
Minimum Pension Amount |
Rs. 1000 per month |
Maximum Pension Amount |
Rs. 5000 per month |
Contribution Frequency |
Monthly |
Subscriber Contribution |
Varies based on entry age and chosen pension amount |
Government Co-contribution |
50% of the subscriber's contribution or Rs. 1000 p.a., whichever is lower |
Voluntary Savings Scheme |
Yes |
Tax Benefits |
Contributions are eligible for tax deduction under Section 80CCD |
Investment Returns |
Variable, based on the scheme's performance |
Spouse Benefit |
Spouse is eligible for the same pension after the subscriber's demise |
Nominee Benefit |
Return of the pension corpus to the nominee after both subscriber and spouse's demise |
Risk |
Low |
Accessibility |
Available through banks and post offices |
Grievance Redressal |
Available |
Scheme Type |
Defined benefit pension scheme |
Online Registration |
Available |
Government Guarantee |
Guaranteed minimum monthly pension |
Exit Provision |
Available after completion of 60 years of age |
Minimum Guarantee Period |
Until the age of 60 years |
Regulatory Authority |
Pension Fund Regulatory and Development Authority (PFRDA) |
Payment Mode |
Auto-debit from savings bank account |
What is Atal Pension Scheme (APS)? – Atal Pension Yojana (APY)
The Atal Pension Yojana (APY) is an Indian government-backed pension scheme designed for workers in the unorganized sector. It enables participants to save for retirement and guarantees a defined pension upon reaching the age of 60.
Open to all bank account holders aged 18 to 40, who are not part of any statutory social security scheme, APY requires a minimum contribution period of 20 years.
The government co-contributes 50% of the subscriber's contribution or Rs. 1,000 per year, whichever is lower, for 5 years, to non-taxpaying participants not enrolled in other statutory social security schemes.
Objectives of Atal Pension Scheme
Atal Pension Scheme Covers a wide range of Objectives. We have listed them below:
1. Universal Social Security Coverage: APY seeks to provide universal social security coverage for workers in the unorganized sector, who often lack access to formal pension plans.
2. Encourage Savings for Retirement: The scheme encourages workers in the unorganized sector to save regularly for their retirement by offering a defined pension at the age of 60.
3. Provide a Defined Pension: APY guarantees a fixed monthly pension ranging from Rs. 1,000 to Rs. 5,000 to the subscriber after they reach the age of 60, ensuring a steady income stream in old age.
4. Co-contribution by Government: To incentivize participation, the government co-contributes 50% of the subscriber's contribution or Rs. 1,000 per year, whichever is lower, for a period of 5 years to those who are not income tax payers and are not included in any other statutory social security schemes.
5. Financial Inclusion: By making the scheme available to all bank account holders, APY aims to further financial inclusion, especially among lower-income groups and those in the unorganized sector.
6. Simple and Accessible: The scheme is designed to be simple and accessible, allowing individuals to contribute through auto-debit facilities from their bank accounts, making it easy for them to participate and save for retirement.
7. Family Security: In the event of the subscriber's death, the pension would continue to be given to the spouse and on the death of both, the corpus would be returned to the nominee. This ensures financial security for the family even after the subscriber's demise.
Features of Atal Pension Yojana
We have listed some of the key futures of Atal Pension Yojana below:
1. Open to all bank account holders aged 18 to 40 years.
2. Available to workers in the unorganized sector who are not part of any statutory social security scheme.
3. Offers a defined pension ranging from Rs. 1,000 to Rs. 5,000 after reaching the age of 60.
4. Requires a minimum contribution period of 20 years.
5. Government co-contribution of 50% of the subscriber's contribution or Rs. 1,000 per year for 5 years for eligible participants.
6. Voluntary contribution levels with the option to increase or decrease the contribution amount.
7. Easy contribution through auto-debit from the subscriber's bank account.
8. Pension continues to the spouse after the subscriber's death.
9. Upon the death of both the subscriber and spouse, the corpus is returned to the nominee.
10. Late payment penalties ranging from Rs. 1 to Rs. 10 per month for delayed contributions.
11. Option to exit the scheme before the age of 60 with certain conditions.
12. Provides a guaranteed minimum pension by the Government of India.
13. Administered by the Pension Fund Regulatory and Development Authority (PFRDA).
14. Encourages financial inclusion and savings discipline among the unorganized sector workers.
15. Contributes to social security and economic stability for the elderly population.
Scope of Atal Pension Yojana
The Atal Pension Yojana (APY) has a wide scope, targeting the vast unorganized sector in India. It aims to provide social security coverage to workers often excluded from formal pension plans.
The scheme is accessible to bank account holders aged 18 to 40, promoting savings for retirement across demographics.
APY provides a guaranteed defined pension to subscribers after 60, contributing to the financial well-being of the elderly.
With the government's co-contribution and ease of contribution through auto-debit, the scheme encourages financial inclusion, savings discipline, and economic stability among the lower-income groups and unorganized sector workers.
Benefits of Atal Pension Yojana
We have listed many famous benefits of this Atal Pension Yojana below:
1. Atal Pension Yojana Provides a guaranteed defined pension to subscribers after the age of 60.
2. Atal Pension Yojana Offers a range of pension options from Rs. 1,000 to Rs. 5,000.
3. Atal Pension Yojana Encourages savings discipline among unorganized sector workers.
4. Government co-contribution of 50% of the subscriber's contribution or Rs. 1,000 per year for 5 years for eligible participants under Atal Pension Yojana.
5. Financial inclusion by being accessible to all bank account holders aged 18 to 40 in Atal Pension Yojana.
6. Atal Pension Yojana allows Easy contribution through auto-debit from the subscriber's bank account.
7. In Atal Pension Yojana, Spouse receives the pension after the subscriber's death.
8. In Atal Pension Yojana, On death of both subscriber and spouse, the corpus is returned to the nominee.
9. Atal Pension Yojana offers Flexibility to increase or decrease the contribution amount.
10. Atal Pension Yojana Guarantees a minimum pension by the Government of India.
11. There is Option to exit the scheme before the age of 60 with certain conditions.
12. Atal Pension Yojana is Administered by the Pension Fund Regulatory and Development Authority (PFRDA).
13. Atal Pension Yojana Provides social security coverage to workers in the unorganized sector.
14. Atal Pension Yojana Helps build a financial safety net for retirement.
15. Atal Pension Yojana Promotes financial planning and literacy among the unorganized sector workers.
16. Atal Pension Yojana Reduces financial dependency on family in old age.
17. Atal Pension Yojana Contributes to social and economic stability for the elderly population.
18. Atal Pension Yojana Late payment penalties encourage timely contributions and financial discipline.
19. Atal Pension Yojana Offers tax benefits as per the applicable tax laws.
20. Atal Pension Yojana Provides a sense of security and peace of mind for the future.
Eligibility for Atal Pension Scheme
We have listed the Eligibility criteria of Atal Pension Yojana below:
1. Age: The individual should be aged between 18 and 40 years.
2. Bank Account: The individual must have a savings bank account. The individual can open an account if they don't have one.
3. Mobile Number: The individual should have a mobile number. This is required for registration and communication purposes.
4. Consent: The individual should be willing to make the necessary contributions to the scheme on a regular basis.
5. Exclusion: The individual should not be a member of any other statutory social security scheme.
6. Taxpayer: Those who are taxpayers are also eligible, but they will not be eligible for the government's co-contribution.
How to apply for Atal Pension Scheme
We have added the Application process of Atal Pension Yojana below. You can follow these steps if you willing to apply for Atal Pension Yojana:
1. Visit the Bank: Go to the bank where you have a savings account. If you do not have a savings account, you will need to open one.
2. Application Form: Obtain the APY registration form from the bank or download it from the bank's official website.
3. Fill the Form: Fill out the application form with the required details, such as your name, bank account number, age, mobile number, and the amount of pension you wish to receive after the age of 60.
4. Choose Contribution: Decide on your contribution level based on the pension amount you wish to receive and your entry age.
5. Submit the Form: Submit the completed application form along with any required documents, such as proof of identity and proof of address.
6. Auto-Debit Facility: You will need to sign an authorization for auto-debit of your contributions from your savings bank account.
7. Acknowledgment: After processing the application, the bank will provide you with an acknowledgment slip, which confirms your enrollment in APY.
8. Check Contributions: Ensure that the contributions are being debited from your account regularly as per the selected contribution frequency.
Challenges to Atal Pension Scheme
Atal Pension Yojana have faced and still facing many challenges. We have listed all of them below:
1. Financial Literacy
2. Low-Income Levels
3. Informal Employment
4. Coverage
5. Enrollment Process
6. Dependency on Government Co-Contribution
7. Voluntary Participation
8. Operational Challenges
9. Investment Risks
10. Inflation
Latest Updates about Atal Pension Yojana
The Atal Pension Yojana (APY) has marked eight years of successful implementation, with over 5.25 crore subscribers enrolled across India. The scheme was launched in 2015 to provide old age income security to all Indian citizens, especially those in the unorganised sector.
Since its inception, enrolments have displayed an increasing trend, with a growth of 20% in FY23 over FY22, compared to a growth of 25% in FY22 over FY21.
As of the latest update, the total assets under management in APY are more than Rs. 28,434 crore, generating an investment return of 8.92% since its inception.
The success of the scheme in bringing the most vulnerable sections of society under pension coverage has been facilitated by the support of Public and Private Banks, Regional Rural Banks, Payments Banks, Small Finance Banks, the Department of Posts, and the State Level Bankers’ Committees.
The APY is available to any Indian citizen between the ages of 18 and 40 years, who is not an income taxpayer and has a savings bank account.
Subscribers receive a lifelong minimum guaranteed pension of Rs.1000 to Rs.5000 per month from the age of 60 years, depending on their contributions.
The Pension Fund Regulatory and Development Authority (PFRDA) is committed to making India a pensioned society, aligning with the vision of the Government of India.
FAQs on Atal Pension Yojana
Question:
What is Atal Pension Yojana?
Question:
Does Atal Pension Yojana offer Section 80C benefits?
Question:
Is Atal Pension Yojana covered under Section 80C?
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How does Atal Pension Yojana compare to the National Pension Scheme?
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What are the key details of the Atal Pension Yojana scheme?
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How does the scheme of Atal Pension Yojana work?
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Are there any schemes similar to Atal Pension Yojana?
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What is the toll-free number for Atal Pension Yojana?
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What are the benefits of Atal Pension Yojana through State Bank of India (SBI)?
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What are the terms and conditions of Atal Pension Yojana?
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When was Atal Pension Yojana started?
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How can I register for Atal Pension Yojana?
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What are the rules of Atal Pension Yojana?
Question:
What tax benefits are available under Atal Pension Yojana?
Question:
Is Atal Pension Yojana included under Section 80C?
Question: अटल पेंशन योजना
को ऑनलाइन बंद कैसे करे?
Question:
How can I close my Atal Pension Yojana online?
Question:
Atal Pension Yojana ko online kaise band kare?
Question:
How can I close my Atal Pension Yojana online through NSDL?
Question:
How can I change my name in Atal Pension Yojana?
Question:
How does Atal Pension Yojana compare to Systematic Investment Plans (SIP)?
Question:
Who regulates Atal Pension Yojana?
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What are the returns on Atal Pension Yojana?
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How can I register for Atal Pension Yojana?
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What is the procedure for Atal Pension Yojana?
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What are the qualifications for Atal Pension Yojana?
Question:
What is the latest news on Atal Pension Yojana in 2022?
Question:
Atal Pension Yojana 2023 ki jaankari Hindi me kya hai?
Question:
In which year was Atal Pension Yojana launched?
Question:
How can I withdraw from Atal Pension Yojana?
Question:
Atal Pension Yojana kya hai Hindi me?
Question:
Who is eligible for Atal Pension Yojana?
Question:
अटल पेंशन योजना क्या है?
Question:
अटल पेंशन योजना के क्या
लाभ हैं?
Question:
अटल पेंशन योजना में
कितना ब्याज मिलता है?
Question:
सबसे अच्छा पेंशन प्लान
कौन सा है?
Question:
अटल पेंशन योजना में बीमा
होता है क्या?
Question:
अटल पेंशन योजना में
कितने साल तक जमा करना पड़ता है?
Question:
अटल पेंशन योजना में
मृत्यु के बाद क्या होता है?
Question:
अटल पेंशन योजना के लिए
कौन पात्र नहीं है?
Question:
मृत्यु होने पर कितने
पैसे मिलते हैं?
Question:
अटल पेंशन योजना कैलकुलेटर
क्या है?
Question:
अटल पेंशन योजना कौन से
बैंक ऑफर करते हैं?
Question:
अटल पेंशन योजना की
न्यूनतम आयु क्या है?
Question:
अटल पेंशन का बैलेंस
जानने के लिए क्या करना होगा?
Question:
अटल पेंशन योजना क्या है?
Question:
पति की मौत के बाद पत्नी
को कितनी पेंशन मिलेगी?
Question:
अटल पेंशन योजना में
ऑनलाइन खाता कैसे खोलें?
Question:
क्या अटल पेंशन योजना में
निवेश करना अच्छा है?
Question:
क्या मैं APY राशि निकाल सकता हूं?
Question:
क्या अटल पेंशन टैक्स
फ्री है?
Question:
अटल पेंशन योजना ऑनलाइन
कैसे बंद करें?
Question: What is Atal Pension Yojana Website?
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Who is eligible for Atal pension yojana?
Question: What is Atal pension yojana alternative?
Question: What is Eligibility for atal pension yojana in hindi
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Does atal pension yojana comes under tax benefit
Question: What are Disadvantages of Atal Pension Yojana?
Question: What are required Atal pension yojana documents?
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Faq on atal pension yojana
Question:
Atal pension yojana form kaise bhare?
Question: What are the Features of Atal Pension Yojana?
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Atal pension yojana form
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Atal pension yojana all details in hindi
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Atal pension yojana benefits in hindi
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Atal pension yojana eligibility
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Atal pension yojana age limit
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Atal pension yojana death benefits in hindi
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Latest news on atal pension yojana
The scheme's success is attributed to its wide implementation across India, with contributions from Public and Private Banks, Regional Rural Banks, and more.
Atal Pension Yojana has provided an investment return of 8.92% since inception, and the total assets under management are more than Rs. 28,434 crore.
Question:
What is Atal pension scheme for?
Question:
Who is eligible for Atal pension scheme?
Question:
Is it good to invest in Atal Pension Yojana?
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What are the disadvantages of APY?
Question:
What will be the value of Rs 5000 after 30 years?
Answer.
FV = PV / (1 + i)^n
Where:
FV is the future value
PV is the present value (the initial amount)
i is the inflation rate
n is the number of years
In this case, PV is Rs. 5000, n is 3 years, and the inflation rate (i) is (if we consider) between 9% and 11%. Let's calculate the approximate value for both 9% and 11% inflation rates:
For 9% inflation rate:
FV = 5000 / (1 + 0.09)^3
FV = 5000 / (1.09)^3
FV = Rs. 3892.77 approximately
For 11% inflation rate:
FV = 5000 / (1 + 0.11)^3
FV = 5000 / (1.11)^3
FV = Rs. 3614.38 approximately
So, the approximate value of Rs. 5000 after three years considering an inflation rate of 9-11% per year would be between Rs. 3614.38 and Rs. 3892.77.
Question:
How do I get a 50000 pension per month?
1. Regularly contribute to the National Pension System (NPS).
2. Invest in annuity plans offered by insurance companies.
3. Contribute to a Public Provident Fund (PPF) account.
4. Start a Systematic Investment Plan (SIP) in mutual funds.
5. Build a diverse portfolio of dividend-paying stocks.
6. Invest in real estate properties that can generate rental income.
7. Purchase long-term government or corporate bonds.
8. Contribute to Atal Pension Yojana (APY) for a guaranteed pension.
9. Save a portion of your income in fixed deposits for regular interest payouts.
10. Plan your retirement with a financial advisor to create a custom strategy.
Question:
Which is better NPS or Atal Pension Yojana?
Question:
What happens if APY dies before 60?
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How to get 1 lac monthly pension?
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How to get 2 lakh per month pension?
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Where to invest 1 lakh per month?
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How much pension will rs 10 lakh give per month?
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What is the 10 lakh pension plan?
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Can I get double pension?
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How to earn 5 lakhs per month?
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How to invest 40 lakhs?
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What is the monthly 10000 pension scheme?
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Who is not eligible for Atal pension?
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What is the minimum period for Atal Pension Yojana?
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What is the minimum deposit in APY?
Question:
Can I open both APY and NPS?
Question:
Which NPS fund has highest return?
Question:
Which bank has the best NPS?
Question:
What is a good NPS score?
Question:
What is the NPS score?
Question:
What is the average NPS score?
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Can I invest 100% of NPS for annuity?
Question:
Which one is best to invest in NPS?
Question:
How do I invest in NPS to get maximum returns?
Answer. To get maximum returns, you should choose a mix of equity and debt investments based on your risk tolerance and investment goals.
Question:
Which bank is good for NPS Quora?
1. State Bank of India (SBI)
2. HDFC Bank
3. ICICI Bank
4. Axis Bank
5. Punjab National Bank (PNB)
Question:
What is the full form of NPS in insurance?
Question:
What does NPS stand for?
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