Atal Pension Yojana
If you are looking for the best pension scheme, we recommend going with Atal Pension Yojana. APY launched by the government of India in the honor of our former Prime Minister of India Atal Bihari Vajpayee.
Under this scheme, we will get the pension amount to Rs 10,000 per month under the Atal Pension Yojana (APY).
Let us find the complete detail of this scheme
What is Atal Pension Yojana & its purpose(APY)?
Atal Pension Yojana is an advantageous social security scheme for citizens working in the unorganized sector. By investing in APY, you get a regular income to spend after retirement. All the pensions are managed by the Pension Fund Regulatory and Development Authority-PFRDA
The APY was started by the Central Government in May 2015. Earlier, there was no such scheme for people working in the unorganized sector.
After retiring from investing in the Atal Pension Yojana, you can be entitled to a pension every month. The biggest feature of the APY scheme is that there is a provision to continue to benefit your family if you die prematurely.
In the event of the death of the person investing in the Atal Pension Yojana (APY), there is a provision for getting the pension to the children in case of the death of his or her spouse.
To get a lifetime pension after retirement, to laborers working in the unorganized sector invest in APY for a few years only. If you join this scheme, the central government will give you and your spouse minimum lifetime pension guarantees. Along with your investment, the government also contributes on behalf of the Atal Pension scheme.
Who can take the benefits of Atal Pension Yojana (APY)?
Any Indian can start investing in the Atal Pension Yojana (APY). To participate in the Atal Pension Yojna, you must have a bank account.
It is also necessary to be linked to the Aadhaar card to open an APY account. Atal Pension scheme can be availed only to those who are outside the income tax slab. Tax benefits Section 80CCD (1) of the Income Tax Act.
What is the age limit in APY?
The people for the APY Scheme are divided into 6 parts. To take advantage of the Atal Pension Yojna, you must be between 18 and 40 years old. To get a pension under APY, you have to invest for at least 20 years.
How much pension will APY get?
The pension amount in APY depends on the investment you have made and your age. Under the APY, a minimum monthly pension of Rs 1,000 and a maximum of Rs 5,000. From the age of 60, you will start getting a pension under APY.
What is the benefit of APY?
The sooner you join the APY scheme, the more benefit you will get. If a person joins the Atal Pension scheme at the age of 18, then he will have to invest Rs 210 every month.
After retirement, from the age of 60, he will get a monthly pension of Rs 5000 every month.
Who can not join APY?
People who come under the purview of income tax, government employees are already taking advantage of schemes like EPF, EPS, they cannot become part of the APY Scheme.
How to get a pension up to Rs. 1000 to 5000?
Under Atal Pension Scheme, a person can get a pension of Rs 1,000 to Rs 5,000 every month. However, the amount to be deposited per month depends on the age of the person. The younger you start investing in this scheme, the lower your installment will be. Its installment also increases with age.
If you want to get a pension of Rs 2,000 every month, then you have to pay an installment ranging from Rs 84 to Rs 582 every month. Your monthly installment depends on your age. If during this time the person and his wife die, then their nominee will get a lump sum of Rs 3,40,000.
Pension will be available even after death:
One of the best things about the APY Scheme is that it continues even after the death of the person. If the person dies before 60 years, then his or her spouse can continue to deposit the money in this scheme and get a pension every month after 60 years. Another option is that the person’s wife can claim a lump sum after the death of her husband. If the wife also dies, then a lump sum amount paid to the nominee.
Who can apply for Atal Pension Yojana?
People between the age of 18 to 40 years can join this scheme. It is necessary to invest at least 20 years in this scheme. To join this scheme, it is necessary to have a savings account and Aadhaar card in the bank.
The main purpose to launch this scheme is to help those underprivileged people, so they do not have to face financial troubles after the age of 60 years.
How to apply for an APY account?
If you want to register for APY Scheme, you have 2 options i.e using your bank
- Offline application for APY through bank
- Apply for Atal Pension Yojana online using Internet Banking
1.Offline application for APY through bank:
- You need to download APY application form from Jansuraksha official website i.e
- Get the APY application form in English, Telugu, Tamil, Odia, Marathi, Kannad, Gujarati, and Bangla languages.
- Fill this application form.
- All nationalized banks provide the APY scheme. Individuals can go to those banks to open an APY account.
- Submit to the bank where you hold the Bank account.
- Attach the required KYC document like Aadhaar card photocopy of the applicant, spouse & nominee with valid mobile number.
- Once all the details provided in the form verified. The APY account is created for you. In case the application form is approved, he/she gets a confirmation message
How to fill the Offline APY application form?
The APY form addressed to the Bank Branch manager. Enter bank name & branch.
2. Bank Details:
Enter the details in BLOCK LETTERS. First, start entering your Bank Account Number, Bank Name, Branch Name.
3. Personal Details:
- Check the box applicable “Shri”, “Smt” or “Kumari”.
- Fill up full name, date of birth, and age.
- Provide a valid mobile number, email-Id and aadhaar card number.
- Check the box for married or single.
- Enter the spouse’s name.
- Fill up the nominee name & relationship with the applicant.
- In case the nominee is a minor then provide the date of birth and guardian’s name.
- Are you availing any benefits from statutory social security schemes
- Are you an income taxpayer?
4. Pension Details:
- You can select contribution based on the pension amount i.e Rs. 1000 to Rs. 5000.
- In this form check / select 1000, 2000, 3000, 4000 or 5000 as pension amount.
- The next box “Contribution Amount (Monthly) (in Rs.)”. This field filled by the Bank officials after calculating the amount you have to pay monthly.
- The calculation is made according to your entry age. For example, for a pension of Rs. 5000, if your entry age is 32 years, you have to pay Rs. 689 per month.
5. Declaration & authorization by applicant or subscriber:
- Here you need to enter the date when you are submitting the application form in date/month/year format with the place.
- Provide a signature or thumb impression in the box. For male left thumb impression is required & for female right thumb impression is needed.
- This section acknowledges the declaration done by the applicant that he/she read all terms & conditions of Atal Pension Yojana & willing to subscribe for this scheme provided by the Government of India/ PFRDA.
6. Filled by the Bank:
- Subscriber name
- Providing PRAN number
- Guaranteed Pension amount
- Periodicity of contribution(monthly, quarterly, half-yearly)
- If monthly payment then amounts under APY, bank name, branch, receiving officer name, date of receipt application & bank stamp.
2. Apply for Atal Pension Yojana online using Internet Banking
- As we know to apply for APY account subscriber needs a saving bank account. To apply for APY login to your bank internet banking interface.
- Here in Axis Bank go to Investments menu then click on Atal Pension Yojana.
3. Here the APY registration completes in 4 steps. Step 1 is personal details- All these will be auto-populated through a bank like entering Full name, Date of birth, age, mobile number & email id. Verify the details entered and click on proceed.
4. Here enter nominee details for APY scheme: Enter married status, name of spouse, Nominee Name, subscriber relation with the nominee, is the nominee is minor if minor need to enter the Date of birth, guardian name, select whether the beneficiary of statutory social security schemes & income taxpayer. Click on proceed.
5. Enter Pension Plan Details here like pension amount needed i.e 1000,2000, 3000, 4000 & 5000. Select the account from which the amount is deducted. periodicity of contribution i.e monthly/quarterly/halfyearly. Based on the above details & age the APY premium amount is calculated. Click on proceed.
6. Below screen Pension amount selected is 5000 per month & age of the APY subscriber is 32 so the APY premium amount per month is Rs. 689/month.
7. Here in the last step, it displays all the details we entered in previous steps like nominee name, Nominee Date of birth, nominee age. The premium details like a pension plan, auto-debit account, payment periodicity & pension amount to pay. Check the box accepting all terms & conditions to proceed. Enter valid OTP generated by the bank on your registered mobile number. Once it is validated the APY account is created & you will receive SMS on your mobile. Click here to check the APY application status.
Atal Pension Yojana Chart with Contribution and guaranteed pension
- The below APY chart shows the entry age & years of contribution under this scheme.
- For each Monthly pension amount i.e 1000,2000, 3000, 4000 & 5000 it is clearly mentioned how much amount should be paid by subscribers on a monthly/quarterly/half-yearly basis along with the entry time.
Also provided with the return of corpus to the nominee for each pension amount i.e from 1.7 lakh to 8.5 lakhs
Penalty Charges for APY charged by banks:
If the required amount not maintained in the bank account which is tied up with APY account having auto-debit facility then below charges are collected:
Banks collect the extra amount for overdue payments, such amount differs from minimum
Rs 1 /month to Rs 10/month as shown below:
- 1/month for payment up to Rs. 100/month.
- 2/month for payment up to Rs. 101 to 500/month.
- Rs 5/month for payment between Rs 501/- to 1000/month.
- Rs10/month for payment beyond Rs 1001/month
Atal Pension Yojana account gets closed under these circumstances:
If a person does not add money to the account of the Atal Pension Scheme for 6 consecutive months, then his or her account will get freeze. The account deactivates after 12 months of no money and closed after 24 months. Therefore, once you start, it is necessary to keep contributing to it regularly.
How to withdrawal from APY?
APY subscriber reaching the age of 60 years:
Upon of entirety of 60 years, the subscribers will submit the request to the
associated financial institution for drawing the assured month-to-month pension.
In case of loss of life of the Subscriber after the age of 60 years:
In case of the demise of the subscriber, the pension is given to the spouse and on the demise of both of them (subscriber and partner), the pension corpus given to the nominee.
Exit Before the age of 60 Years:
Exit before 60 years of age isn’t permitted.
however, it’s far permitted in some rare circumstances, i.e, if the demise of the beneficiary because of a terminal disease. The pension amount wealth inside the Atal Pension Yojana accounts compensated to wife/husband.
The defaulting nominee or the nominee provided through the subscriber. No
fixed/guaranteed pension payable.
Death of Subscriber earlier than 60 years:
The whole corpus amount returned to the wife or husband /nominee.
APY Subscriber can
- Apply for change of Pension plan,
- Also Correct or modify personal details, nominee details
- voluntary Exit from the scheme
- Download Atal Pension Yojana StatementClick below article to know more about the above points
In this way, Atal Pension Scheme is one of the best schemes for citizens of India.
Rs. 5000 rupees monthly pension for 210 rupees – Modi government runs Atal Pension Scheme in the name of former Prime Minister Atal Bihari Vajpayee. The purpose of this scheme is to give pension to every citizen of the country after the age of 60 years so that they can have financial freedom in their old age.
In Atal Pension Yojana, you can get a pension of Rs 5,000 per month after retirement by depositing just Rs 210 per month. If you join this scheme at the age of 18 and deposit Rs 210 every month, then after the age of 60 you will get Rs 5,000 every month.
Jan-Dhan se jan-Suraksha Portal
APY website: https://jansuraksha.gov.in/
Atal Pension Yojana toll-free numbers: 1800-180-1111 / 1800-110-001
APY State-wise Toll-free Numbers: https://jansuraksha.gov.in/files/STATEWISETOLLFREE.pdf