All You Want to Know About Atal Pension Yojana

Before I tell you about the Atal Pension Yojana scheme I need to tell you the ground reality of our country.

Most of our people are not covered under any kind of insurance plan or a social security scheme.

Once they get old, either they become dependent on their children or have to toil hard for bread and butter even at this age.

We have seen senior citizens have to work hard even after the age of 60 yrs because they do not plan any pension scheme.

Hence after writing about PM Suraksha Bima Yojana, I decided to write this article to tell you about Atal Pension Yojana and how you can live a peaceful life in your last days.

What is Atal Pension Yojana

Atal Pension Yojana is a scheme started by government of India announced by the finance minister in his recent budget speech. Atal_Pension_Yojana

This scheme is for all those people who work for unorganized sector and want to join the National Pension System or are not part of any other kind of social security system.

To put it in other words if you work for private sector and wish for fixed amount of pension after you quit the job then Atal Pension Yojana makes it possible.

So according to this scheme a person at the age of 60 years can get a fixed pension of Rs 1000/-, Rs 2000/-, Rs 3000/-, Rs 4000/-, Rs 5000/- every month year after year.

We will talk about this in great detail in coming paragraphs like how you need to pay monthly premium.

But before that I want to say, start preparing for your old age from now on so that you can live peacefully later.

Who all are Eligible for Atal Pension Yojana

Here are some of the important eligibility criteria-

1. The first criterion is you must be citizen of India if you are looking for joining the Atal Pension Yojana. eligibility

2. Citizens who want to join this scheme must have a valid bank account because all the money transfer like the contributions and returns will be done through direct bank transfer.

3. Now let us talk about the Age factor. The edibility age is 18 to 40 years. So after 40 years of age you cannot join this scheme. Age factor is very important because monthly contribution would depend upon how early you join the scheme. We will talk about this in detail in coming paragraphs.

4. You will get government contribution only if you are not part of any other social scheme and also you are not a tax payer. Then government can contribute for you.

So these were very simple criteria so anyone can apply it.

When to Join Atal Pension Yojana

A lot of people ask when they should join the scheme. Well I tell them as soon as possible because after 40 years you cannot join the scheme.

So here I present you with brief points when you need to join the plan.

  • If you join at the age of 18 years then the years of contribution would be 42 years and the return will depend upon the amount you contributed. join atal pension yojana
  • Similarly if you join at the age of 20 years then the contribution period would be 40 years and return depends upon amount contributed.
  • The age group of 25 years will have to invest for at least 35 years and the minimum contribution per month must be Rs 151/-
  • The age group of 30 years will have to invest for at least 30 years and minimum contribution per month is Rs 231/-
  • The age group of 35 years will require investment for 25 years and minimum contribution should be Rs 362/-
  • Finally the age groups of 40 years have to invest for 20 years and pay premium of Rs 582 per month.

Therefore the early you join the better it is.

Monthly Premium, Contribution by the Govt Pension Returns

This is the meat of the article where you get to know how much you need to pay and what is the contribution made by the government. You also get to know what you get when you are retired.

Monthly Premium

As you know there are 5 pension plans, Rs 1000/-, Rs 2000/-, Rs 3000/-, Rs 4000/-, Rs 5000/-

Now to make it easy I have decided to create a table and give an overview of joining date, contribution to be made by your side and pension that you get after 60 years of age.

Plan for Rs 1000/- Monthly Pension is

Plan for Rs 2000/- Monthly Pension is

Plan for Rs 3000/- Monthly Pension is

Plan for Rs 4000/- Monthly Pension is

Plan for Rs 5000/- Monthly Pension is

Pension Returns

What happens if you die and not able to collect you pension. In that case you get a fixed return in case of some unforeseen incident.

Benefits of Atal Pension Yojana

Now Let us look at some of the benefits of the Atal Pension Yojana

  1. The fixed amount of money will be credited to your bank account every month after you reach the age of 60 years.
  2. Anyone can join this plan that is not covered under any other social security plan. So poor have access to a social security scheme.
  3. The premium or the monthly contribution is very low.
  4. The penalty is also very low like Re 1 to Rs 10 that’s it.
  5. Government is also going to contribute 50% of the investment. So it is subsidized.

FAQs Regarding Atal Pension Yojana

Now let us answer some question rising in your mind.

Q: Can You Open two accounts? faqs atal pension yojana
A: No, absolutely not because only one account is allowed per person.

Q: Who is going to administer this scheme?
A: Pension Fund Regulatory and Development Authority or PFRDA.

Q: Is government going to contribute for this scheme?
A: Yes but it is available for 5 years, from 2015-16 to 2019-20.

Q: What is going to happen if I fail to contribute or pay my premium on due dates?
A: Well! You need to pay fine depending upon your monthly premium. The fine could range from Re 1 to Rs 10/-. But if don’t pay for 6 months then account will be frozen, for 12 months deactivated and for 24 months account will be closed.

Q: Can I change my monthly Contribution plan?
A: Yes you can do it, higher it or lower it.

Q: Can I exit the Scheme before 60 years?
A: No, the exit is permitted only in case of death or terminal disease.

How do I Get Application Form for Atal Pension Yojana

You need to have a bank account and Aadhar card details for identity proof. You can get forms in any language you want.

You can find further information from the Dept. of Financial services website here.  And you can download the APY application form online here.

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