In this post I will talk about Eligibility for Atal Pension Yojana, Government of India’s insurance pension program targeted towards unorganized workforce.
Atal Pension Yojana is a pension scheme for Indian citizens primarily focused on unorganized sector Workers. Under this scheme a guaranteed minimum pension of Rs 1000, Rs 2000, Rs 3000, Rs 4000, or Rs 5000 monthly will be paid to subscriber after the age of 60, depending on the amount he has contributed.
This is the 4th article in the series of Atal Pension Yojana. Previously I had talked about the below.
What is Pension?
A pension is a fixed amount paid monthly to a person after his retirement. When the person is working, he has to make regular monthly contribution / premiums for his retirement corpus, and from this pool the pension is paid out later.
What are the features of Atal Pension Yojana Scheme?
- Monthly contribution by the person during his work career till age of 60.
- Monthly pension of certain amount from age 60 onward.
- After death of person, his wife/ husband will continue to get that amount.
- After death of spouse, nominee will get a lump-sum as determined by the government.
Eligibility for Atal Pension Yojana
- Only Indian citizens are eligible for Atal Pension Yojana.
- Person must be between 18 and 40 years of age.
- Only people with Savings Bank account are eligible to participate in Atal Pension Yojana.
- The person must have a mobile phone and a valid mobile phone number to participate in this scheme.
- It is not compulsory to provide Aadhaar for opening Atal Pension Yojana (APY) account. However Aadhaar is an important KYC document to be used for validation, verification and dispute resolution. The Central Government will also contribute the lower of 50% of total contribution or Rs 1000 per year to eligible subscribers for a period of 5 years from 2015-16 to 2019-20 after which the scheme may continue but will not receive any Central contribution. This will be applicable to only those who are not income tax payers and are not covered under any social security scheme.
- Subscribers who are covered under the below statutory social scheme are not eligible to receive Government co-contribution.
- Employees’ Provident Fund & Miscellaneous Provision Act, 1952.
- The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
- Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955.
- Seamens’ Provident Fund Act, 1966.
- Jammu Kashmir Employees’ Provident Fund & Miscellaneous Provision Act, 1961.
- Any other statutory social security scheme.
- Swavalamban Yojana was a government-backed pension scheme targeted at the unorganized sector in India. This scheme has been replaced with Atal Pension Yojana. The existing Swavalamban subscribers between 18-40 years will be automatically migrated to APY.
Benefits of Atal Pension Yojana Scheme
- APY is a very Simple Scheme to understand and implement.
- Atal Pension Plan is backed by the Government of India.
- It is very good for poor people who have no pension.
- APY shall provide monthly Pension after 60 to poor people and those belonging to unorganized Sector.
- Government Contribution – The Central Government will also contribute the lower of 50% of total contribution or Rs 1000 per year to eligible subscribers for a period of 5 years from 2015-16 to 2019-20 after which the scheme may continue but will not receive any Central contribution.
- Migration of Swavalambhan Scheme to APY.
- Information Alerts to Subscribers.
That’s it. Thank you for reading eligibility for Atal Pension Yojana.
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A Few Last Words
Before making any investment decision, please contact your financial adviser. I have provided this article for educational purpose only.
I hope you found this article on Eligibility for Atal Pension Yojana. If you have something to add please leave a comment in the post. Please feel free to contact me.