Gone are those days where the government job was a matter of
prestige and priority. The young generation of today likes to be a part of
private entrepreneurship. And hence, the generation of today is pension-less.
But thanks to the PM Modi’s initiated Atal Pension Yojana, where every
Indian of the unorganised sector is promised to receive a monthly pension
amount.
How does it work?
The Atal Pension Yojana
scheme intends to provide social security with a minimum contribution
per month.
Once you have decided to join the APY plan, you need to
contact your branch bank or apply online.
After the account is activated, you need to contribute a
specific amount every month to the APY account until you reach 60 yrs of
age.
The amount of contribution and the individual’s age while
opening the account determines the amount of pension.
People who work under the private sector or are employed in
occupations that do not give them pension benefits can apply for the APY scheme.
The pension amount can be received as 1,000 or 2,000 or
3,000 or 4,000 or 5,000 per month. You can opt for which amount you would like
to receive in the future. Depending on the pension amount you would like to receive,
the amount of contribution is fixed.
Upon the death of the contributor, the spouse can claim the
pension amount. After the spouse’s death, the pension amount contributed will
be returned to the nominee.
What are the benefits of Pradhan Mantri Atal Pension
Yojana?
Ensured social security – with Atal Pension
Yojana, people working under the unorganised and private sector are offered
monthly pension after the age of 60 yrs. This way, the old generation of the
future will have savings of their own to meet their needs.
Promotes savings – Atal PY scheme helps to encourage
savings in the private sector employees, thereby benefitting them when they get
aged. The best thing about the APY scheme is that the lower and
lower-middle-class sections of the society are focused on this category.
Benefits to the spouse/ nominee – In case of death of
the contributor, the pension amount goes to the spouse. If both of them die,
then the entire corpus is given to the nominees.
Exit policy – the Atal Pension Yojana scheme allows
the subscriber to exit the policy plan under exceptional cases, like in case of
terminal illness or death.
Eligibility criteria for the APY scheme
The Pradhan Mantri Atal Pension Yojana is eligible for all
Indians
Between the age of 18 – 40.
Who has a valid account
Please note: All existing members of the Swavalamban Yojana
NPS Lite will automatically be redirected to the APY scheme.
Inference
