In this post I will talk about the features of Atal Pension Yojana Scheme.
Atal Pension Yojana (APY) is a pension scheme launched by government of India. Depending on how much a person contributes during 18 to 40 years of age, at the age of 60, he will receive as pension a sum Rs 1000, Rs 2000, Rs 3000, Rs 4000, or Rs 5000 monthly.
I have given a review of Atal Pension Yojana earlier which you may read to get some background.
1. Purpose of this Scheme
All Indian’s are eligible for this scheme. However the target sector is primarily the unorganized workforce sector. Around 88% of India’s workforce belongs to this sector, and they are an especially vulnerable part of society. This scheme is meant to ensure that they have some sort of social security after retirement.
2. Eligibility for Atal Pension Yojana
Any Indian citizen having a Savings Bank account is eligible for this scheme.
3. Age Limit
People between the age of 18 to 40 years can apply for his scheme.
4. Payment Mode of Atal Pension Yojana
The amount will be automatically debited from the linked Savings Account.
5. Payment Frequency
Subscriber has to make his contribution every month.
6. Contribution Period
Subscriber will start receiving pension after 60 years of age. Hence contribution period varies between 42 years to 20 years depending on age of entry.
7. Guaranteed Scheme
APY is a guaranteed scheme of government of India.
8. Government Contribution – Among the most useful features of Atal Pension Yojana
Government will contribute the lower of 50% of the person’s contribution or Rs 1000. This facility will 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.
9. Swavalamban Scheme
Subscribers of Swavalamban Scheme will be directly moved to Atal Pension Yojana Scheme.
10. PFRDA (Pension Fund Regulatory and Development Authority)
Atal Pension Yojana is being administered by the PFRDA (Pension Fund Regulatory and Development Authority).
That’s it. Thank you for reading Features of 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 Features of Atal Pension Yojana. If you have something to add please leave a comment in the post. Please feel free to contact me.