Atal Pension Yojana (APY)

 Atal Pension Yojana (APY)


The pension scheme provides a pension after retirement.  Generally, employees make a contribution to their retirement life from the day of joining the job and receive a pension after retirement.  However, what about workers in the unorganized sector? The central government on May 9, 2015 announced the Atal Pension Scheme for them.  Those who invest in it will receive a fixed amount in the form of a monthly pension after 60 years, depending on their investment.

Detail of Atal Pension Yojana

 Let’s take a look at the full details of the Atal Pension Scheme and the benefits it offers.

 Entry age :-According to government rules, people under the age of 18 to 40 can join the scheme.  Therefore, even students who have completed 18 years of age can join the scheme and invest in their future retirement life.  Also, you are not eligible to join this scheme after the age of 40.


 The contribution will be based on the age of the subscriber and his / her desired pension at the time of joining the scheme.  Those who have reached the age of 18 are required to contribute for 42 years.  Rs.  42 to a maximum of Rs.  Up to 210 can be invested.  Those who have reached the age of 40 must contribute for 20 years.  Rs.  291 to a maximum of Rs.  Can be dated to 1454.  There will be a change in the minimum and maximum contributions based on the age at the time of joining the scheme.  The central and state governments also contribute to some extent in this scheme.  However this does not apply to everyone.  Applies only to specific individuals.

Accurate pension:-

 Members enrolled in the Atal Pension Scheme will receive a fixed pension based on their monthly contributions.  Depending on the amount you pay per month, you can get a pension of Rs.1000, Rs.2000, Rs.3000, Rs.4000 and a maximum of Rs.5000.  From the completion of 60 years, the government will provide a fixed amount in the form of a pension.

Detail Explanation With Example:-

 For example, you are expected to get a pension of Rs.5000 per month.  If you think you are 18 years old now, you can earn Rs.  210 would have to be invested.  If you think you are 40 years old you will have to invest Rs.1454 per month for 20 years.  According to financial experts, there are many rewards to joining the scheme at an early age.

 Contribution can be increased:-

 As mentioned earlier, those who join the Atal Pension Scheme will be entitled to a pension after reaching the age of 60 years.  The pension will be paid after retirement based on the contribution you make to the scheme.  Therefore, the higher the amount invested, the higher their pension will be.  Even if a small investment is made at the time of registering the pension, those who want to increase the amount of the pension in the future may increase the contributions.  Also, there is an option to reduce the contribution even if they want to reduce the contribution for any reason.  This facility is only available once a year.

 How to invest?

 Those who want to invest in the Atal Pension Scheme must have a savings account in any public sector bank.  You can also invest at your nearest post office.

Auto – Debit :-

 Another good feature in Atal Pension Yojana is auto-debit.  Members who join this scheme can link their bank account with Atal Pension Yojana account and give appropriate instructions / directions to the bank so that they can directly debit the monthly contribution.  Those who opt for the auto-debit option will be required to maintain a balanced balance in their bank account each month.  Otherwise you will have to pay a penalty for the transaction failure.

 Withdrawal policy :-

 Subscribers will be entitled to a monthly pension based on the total corpus deposited from the age of 60 years.  This means that you can get a monthly pension after closing this scheme at the concerned bank.  In case of accidental death of APY member after maturity of the scheme, monthly pension will be paid to their spouse.  If the spouse also dies, the full amount will be paid to the nominee.

 If you die before maturity :-

 Two options are available if the APY subscriber dies before maturity.

 1. The spouse’s spouse can close the APY account completely and withdraw the contribution made up to that date, in lump sum, along with the interest benefits accruing on it.  These benefits are passed on to the nominee in the event of a spouse’s marriage, legal separation or death from the spouse.

 2. The APY account can be continued.  This option is only available to spouse.  After the death of the subscriber, the spouse maintains the account in his / her name for the week after the age of 60 / – and receives the pension till the age of retirement.

If the subscriber wants to exit the scheme before the age of 60 :-

 The subscriber can opt out of the scheme when he falls ill.  This option is only available for certain illnesses and in certain special circumstances.  The benefits paid by the subscriber (including the contribution made by the subscriber, the government contribution, along with the proceeds on it) will be paid if the government rules that the sick person will have to withdraw from the APY.

If you want to leave voluntarily:-

 The subscriber can voluntarily opt out of the scheme before the age of 60.  However, the contribution made by the subscriber to the applicant will be deducted from the proceeds (maintenance, other fees) and only the remaining amount will be paid.  Contribution made by the government in accordance with the subscriber, will not pay the proceeds on it.


 Those who do not pay regularly on a monthly basis will be fined.  Those who pay Rs 100 per month will be fined one rupee if they do not pay by the due date.  Also, those who pay Rs 101 to Rs 500 per month will be fined Rs 2, those who pay Rs 501 to Rs 1,000 will be fined Rs 5 and those who pay more than Rs 1,000 will be fined Rs 10.  If the pension is not paid for six consecutive months, the pension account will be frozen.  Similarly the pension account will be deactivated if not paid within 12 months.  After 24 months the account will be closed and the amount collected till then will be repaid with interest.

 Tax Exemptions:-

 Those who join the scheme can avail tax exemption up to Rs 50,000 under Section 80CCD (1B) of the Income Tax Act.

 When is it best to join?

 Experts say it would be more beneficial to take the Atal pension scheme at an early age.  How, let’s try to find out with an example.

An 18-year-old subscriber pays Rs.  5,000 per month for a monthly pension of Rs.  210 at the rate of Rs.  Pays 1,05,840.  For the same pension, a 40-year-old subscriber pays a total of Rs 3,48,960 at a rate of Rs 1,454 per month.

 The difference between the two subscriptions is Rs. 2,43,120.  This means that a 40-year-old subscriber pays Rs 2,43,120 more than an 18-year-old subscriber for the same pension.  That is why you can get more benefits by joining the Atal pension scheme at an early age.

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