Atal Pension Yojana (APY) is a government-backed pension scheme in India, primarily targeted at the unorganized sector. It was launched on May 9, 2015, to create a universal social security system for all Indians, especially the poor, the underprivileged, and the workers in the unorganized sector. APY is administered by the Pension Fund Regulatory and Development Authority (PFRDA) . Here are some key features of the scheme:
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Eligibility: APY is open to all bank account holders in the age group of 18 to 40 years.
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Contributions: The contributions differ based on the pension amount chosen by the subscriber and can be made on a monthly, quarterly, or half-yearly basis.
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Pension: Subscribers would receive a guaranteed minimum monthly pension of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, or Rs. 5000 at the age of 60 years. The minimum pension is guaranteed by the government, i.e., if the accumulated corpus based on contributions earns a lower than estimated return on investment and is inadequate to provide the minimum guaranteed pension, the Central Government would fund such inadequacy.
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Tax benefits: APY is eligible for the same tax benefits as the National Pension System (NPS) .
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Enrollment: The scheme is available to any citizen of India with age 18-40 years. Aadhaar is not mandatory for enrollment, but the prospective applicant may provide Aadhaar and mobile number to the bank during registration to facilitate receipt of periodic updates on the APY account.
APY is a good option for lower-middle-class people who want to secure their future with a pension scheme.
