Features of Atal Pension Yojana

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.

You may also like

Reference
APY Brochure
Mydailytips on Atal Pension Yojana’
APY FAQ
APY may not be enough for your retirement

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.

Subhodeep Mukhopadhyay

I am a Management Consultant in the Education Sector. In my previous corporate career, I have worked in Banking, Private Equity and Software industry. I am an MBA in Finance/ Computer Engineer and enjoy doing equity research and financial analysis in my free time.

5 thoughts on “Features of Atal Pension Yojana

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>