A country consists of a large population, with every person
belonging to a different sector of society. Likewise, there are many divisions
based on employment sectors. The most prominent ones are the private sector and
the public sector of employment. The private sector consists of workers that
serve corporations, individual businesses, and other non-government agencies.
The jobs included in this sector are hospitality,
professions, manufacturing, financial services, etc., where employees get paid
with part of the profits made by the company. The public sector hires workers
through the federal, state or local government. The availability of jobs is
in healthcare, teaching, emergency services, armed forces, and various
regulatory and administrative agencies. Workers receive payments through a
portion of the government’s taxes.
Thankfully, the Atal Pension Yojana
is a scheme that is available for all the employees of all the sectors of
employment. It was introduced in 2015 by the Government of India to give pension
benefits to employees of the unorganised sector. The Pension Funds Regulatory
Authority of India (PFRDA) is responsible for the regulation and control of the
scheme. Nevertheless, those individuals working for the organised sector can
also use this scheme to save for the future.
Benefits of the scheme
This pension scheme reduces the necessary financial
obligations faced by individuals that arise in their retirement phase. It also encourages
them to start saving from an early age. The amount of pension is directly
dependent on the age and the monthly contributions of the individual.
The benefits offered by the APY scheme are as
follows:
Source of income in old age:
All the individuals receive the facility to earn a steady
source of income after they are 60 years old, hence making them financially
stable to meet all their requirements, including their medical expenses.
Government-backed scheme:
The Indian government supports this scheme, and the Pension
Funds Regulatory Authority of India (PFRDA) regulates it. Thus, there is no
risk of loss.
Enabling the unorganised sector:
The Atal Pension Yojana scheme was launched with a motive to
decrease the financial worries of the unorganised sector and make them
economically stable in their later years.
Nominee facility:
In cases where the beneficiary loses its life, the pension
benefits can be made available to the nominee, especially the spouse of the
deceased. They can either terminate the account and withdraw all the savings or
choose the same amount and continue receiving the pension. In case both the
beneficiaries do not survive, the nominee gets the entire corpus amount
deposited for Atal Pension Yojana.
