Atal Pension Yojana: Check Benefits, Eligibility, Required Documents To Get Upto ₹5,000 Per Month After Age 60yrs
The Atal Pension Yojana (APY)is a government-backed scheme that provides a reliable pension to its subscribers, giving them financial stability in their retirement years. For individuals working in the unorganized sector, the scheme is especially to meet the needs of those who do not have access to formal pension plans between the ages of 18 and 40 and who are not income tax-payers.
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Benefits Of Atal Pension Yojana (APY)
The Atal Pension Yojana (APY) is designed to offer financial security to workers in the unorganized sector. Here’s an in-depth look at the benefits subscribers receive upon attaining the age of 60, provisions for voluntary exit, and options available in case of death before 60.
| Benefit | Description |
|---|---|
| Guaranteed Minimum Pension | Subscribers receive a guaranteed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 after reaching 60 years of age. |
| Spouse Pension | In case of the subscriber’s death, the spouse receives the same pension amount until their death. |
| Nominee Benefit | Upon the death of both the subscriber and the spouse, the accumulated pension wealth is paid to the nominee. |
| Government Contribution | For eligible subscribers who joined before December 31, 2015, the government contributes 50% of the total contribution or ₹1,000 per annum (whichever is lower) for five years. |
| Flexible Contributions | Subscribers can choose the contribution amount based on the desired pension and their age at entry, with options for monthly, quarterly, or half-yearly payments. |
| Tax Benefits | Contributions to APY are eligible for tax benefits under Section 80CCD(1), similar to the National Pension System (NPS). |
| Auto-Debit Facility | Contributions are automatically debited from the subscriber’s savings account, ensuring timely and regular payments. |
| Early Exit Provisions | Subscribers can exit the scheme before 60 years with a refund of contributions and the net actual accrued income, after deducting account maintenance charges. |
| Death Before 60 Years | In case of the subscriber’s death before 60 years, the spouse can continue the account or the accumulated corpus is returned to the spouse/nominee. |
| Encourages Savings | The scheme promotes a savings culture among workers in the unorganized sector, providing financial security in old age. |
Eligibility Of Atal Pension Yojana (APY)
The Atal Pension Yojana (APY) is a scheme to ensure a secure and stable retirement for workers in the unorganized sector. Understanding the age of joining and the contribution period is important for maximizing the benefits of this scheme.
Age of Joining the APY Scheme
The minimum age to join the Atal Pension Yojana is 18 years, and the maximum age is 40 years. This age range allows young adults to start planning for their retirement early, while still providing an opportunity for older individuals within the specified age bracket to secure their financial future.
Contribution Period
Candidates are required to contribute to the APY from the age they join until they reach 60 years. This means the contribution period can range from 20 to 42 years, depending on the age at which the subscriber enrolls in the scheme.
Auto-Debit Facility
To facilitate regular contributions, the APY utilizes an auto-debit system. Subscribers authorize their bank to automatically debit the prescribed contribution amount from their savings account.
This can be done on a monthly, quarterly, or half-yearly basis, providing flexibility in managing payments and ensuring consistent contributions without manual intervention.
Starting Pension At Age 60
The pension benefits start when the subscriber attains the age of 60. At this point, they begin to receive the guaranteed minimum pension amount, which ranges from ₹1,000 to ₹5,000 per month, depending on their contribution level. This regular pension provides financial stability during retirement, ensuring a steady income stream.
Note: From 1st October 2022, any citizen who is or has been an income tax payer, shall not be eligible to join APY.
Atal Pension Yojana (APY) Application Process
Opening an Atal Pension Yojana (APY) account is a simple process, and it can be done both online and offline. Here’s a step-by-step guide to help you through the process.
Process 1: Opening an APY Account via Net Banking (Online Mode)
You can easily open an APY account online using your net banking facility. Follow the below steps:
- Login to Net Banking: Access your Internet banking account.
- Search for APY: Locate the APY option on your dashboard.
- Fill Basic and Nominee Details: Enter your basic information and nominee details.
- Consent for Auto Debit: Provide consent for the auto-debit of the premium from your account.
- Submit the Form: Complete the form and submit it.
Process 2: Opening an APY Account via the eNPS Website
You can also open an APY account through the National Pension System (NPS) website. Here’s how:
- Visit the eNPS Website: Go to eNPS NSDL and select “Atal Pension Yojana”.
- Select APY Registration: Choose the APY registration option.
- Fill Basic Details: Complete the basic details in the form.
- Complete KYC: Choose one of the three KYC options:
- Offline KYC: Upload the XML file of Aadhaar.
- Aadhaar KYC: Complete KYC through OTP verification on the mobile number registered with Aadhaar.
- Virtual ID KYC: Create an Aadhaar virtual ID for KYC.
- Generate Acknowledgement Number: After filling in basic details, an acknowledgment number is generated.
- Fill Personal Details: Provide your personal information and decide on the pension amount you want after 60 years.
- Select Contribution Frequency: Choose the frequency of your contributions (monthly, quarterly, or half-yearly).
- Confirm Personal Details: Verify and confirm your details.
- Fill in Nominee Details: Enter the nominee details.
- eSign via NSDL: You will be redirected to the NSDL website for eSign.
- OTP Verification: Complete the Aadhaar OTP verification to finalize your registration.
- Successful Registration: Once verified, you will be successfully registered in the APY scheme.
Joining Digitally through the e-APY Portal or Bank Web Portals
You can also join APY digitally through the e-APY portal or the web portals of banks providing this facility. Follow the instructions on the respective portals for registration.
Additional Information
- Website: eNPS NSDL
- Helpline Number: For assistance, call the toll-free helpline number for the APY Scheme at 1800-110-069.
Atal Pension Yojana (APY) Application Process (Offline Mode)
One can visit the nearest bank branch or post office where he/ she has a savings bank account and submit the APY registration form to open the account.
Required Documents For Atal Pension Yojana (APY)
For offline mode, there are no documents required as the KYC details are fetched from an active Bank/Post Office Savings account.
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Can I Open an APY Account Without a Savings Bank Account?
No, the savings bank account/ post office savings bank account is mandatory for joining APY.
When Will I Receive My Pension?
The age of starting the pension is 60 years.
What Will Happen if the Contribution Gets Delayed?
Subscribers will be charged overdue interest for the delayed period in case the APY contribution gets delayed beyond the due date.
Whether Aadhaar Number Is Compulsory for Joining the Scheme?
It is not mandatory as of now.
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