Atal Pension Yojana

Atal Pension Yojana (APY) is a social security scheme launched by the Government of India on 9th May 2015. It is primarily aimed at providing a pension for workers in the unorganized sector, encouraging them to save for their retirement. APY is administered by the Pension Fund Regulatory and Development Authority (PFRDA).
What is Atal Pension Yojana

Key Features of Atal Pension Yojana:

1. Eligibility: APY is open to all Indian citizens between the ages of 18 and 40 years. Individuals within this age group can join the scheme.
2. Pension Amount: The scheme provides a fixed pension amount to the subscriber after they reach the age of 60. The pension ranges from Rs. 1,000 to Rs. 5,000 per month, depending on the contributions made and the age at which the subscriber joins the scheme.
3. Contributions: Subscribers are required to contribute to the scheme on a monthly basis. The contribution amount depends on the chosen pension amount, the age of the subscriber when they join the scheme, and the number of years remaining until the subscriber reaches the age of 60. Contributions can be made through auto-debit facilities from the subscriber’s bank account.
4. Government Contribution: Depending on the age and contribution amount, the government provides co-contributions for a certain period (usually for 5 years) to the subscribers who joined the scheme between 1st June 2015 and 31st December 2015.
5. Guaranteed Pension to Spouse: In the event of the subscriber’s demise, the spouse receives the pension amount. If both the subscriber and the spouse pass away, the nominee receives the accumulated corpus.
6. Exit and Withdrawal: Subscribers can exit the scheme only upon reaching the age of 60. Premature exits are allowed only in specific cases such as terminal illness or death. In such cases, the entire pension corpus is paid to the nominee or the subscriber’s legal heir.
7. Tax Benefits: Contributions made to Atal Pension Yojana are eligible for tax benefits under Section 80CCD of the Income Tax Act, subject to a maximum limit of 1.5 lakh rupees per financial year.
Atal Pension Yojana aims to address the pension and retirement income needs of workers in the unorganized sector, promoting financial inclusion and social security for all. It encourages individuals to save systematically for their old age, ensuring a dignified life after retirement.