People work their entire life dedicatedly to earn a better future and living. They sacrifice their recreational activities only for their families to enjoy their present and future. Every stage has to end. Similarly, all those who are employed have to retire at some point in life. They deserve some relaxation after so many years of hardship and effort.
The Atal Pension Yojana, introduced by the Government of
India in 2015, provides pension benefits to all senior citizens and retired
employees. It is an extension of the National Pension Scheme and replaces the
formerly institutionalised Swavalamban Pension Yojana. All accounts opened in
the first year, i.e., 2015, were eligible for co-contributions from the
Government for five years.
The APY scheme eases the financial obligations of
individuals that may occur during their retirement and encourage them to start
saving from the initial days of employment. The amount of pension that they
receive depends on the contributions and age. All the beneficiaries of the
scheme receive their accumulated corpus in the form of monthly payments. If the
beneficiary dies, their spouse shall continue to receive the pension benefits.
In case both of them are deceased, the beneficiary’s nominee gets the whole
lump sum amount.
The following are the features it offers:
Automatic debit facility: One of the primary benefits of
having an APY
account is the automated debit facility. The bank account of the
beneficiary gets linked with the pension account from where the monthly
contributions get deducted. All individuals who have subscribed to the scheme
have to ensure sufficient account balance to avoid penalties.
Facility to increase the contribution amount: To receive
pension amount, the account holder should be at least 60 years old. Different
contributions have varying pension amounts. Individuals can make larger
contributions to get higher pensions after their retirement. The amount is
adjustable according to financial needs once in every financial year.
Guaranteed pension: Beneficiaries of the Atal Pension Yojana
scheme can choose to receive a periodic pension of INR 1000, INR 2000, INR
3000, INR 4000, or INR 5000, depending on their monthly contributions.
Age restrictions: Individuals above 18 years and below 40
years of age can invest in the scheme. The age of 40 is the maximum bar
for entry into the program. Contributions shall continue for at least 20 years.
People can apply for the scheme by visiting the nearest bank or post office branch and submitting two photocopies of the Aadhaar card along with the duly filled application form. Provide the contact details of an active mobile number. They can also download the form from the bank’s website and follow the steps.
