HIGHLIGHTS-
- To secure the future of all citizens, the government introduced the Atal Pension Scheme.
- The Atal Pension Scheme will focus on the complete society despite their occupation.
- The age criteria to join APY is a minimum of 18 years old, with a maximum age of 40 years.
To secure the future of all citizens, the government introduced the Atal Pension Scheme, APY. The pension scheme focuses primarily on providing social security to all Indians. It is aimed mostly at the impoverished, underprivileged, and unorganized sectors, such as maids, delivery boys, and gardeners. Unlike the pension scheme that benefits only the government employees, the Atal Pension Scheme focuses on the complete society despite their occupation.
All About Atal Pension Scheme
Depending on the contribution and period, the Atal Pension Yojana (APY) offers a specified pension. The APY would target all unorganized citizens who join the Pension Fund Regulatory and Development Authority’s National Pension System (NPS) (PFRDA). At the age of 60, subscribers to the APY would receive a fixed minimum pension. The pension would be depended on their contributions, which would be based on the age at when they joined the APY.
Govt to co-contribute 50% of the total contribution
All eligible subscribers who joined between June 2015 and December 2015 for a period of 5 years, i.e. for financial years 2015-16 to 2019-20, would receive a co-contribution of 50% of the total amount from the government, or Rs. 1000 per annum, whichever is lower. Subscribers must not be enrolled in any other statutory social security plans (e.g., Employees Provident Fund) or pay income taxes to be eligible for the government’s co-contribution.
Age criteria to join Atal Pension Scheme
The age criteria to join APY is minimum of 18 years old, with a maximum age of 40 years. As a result, under APY, any subscriber’s minimum contribution period would be 20 years or longer. The government would guarantee a fixed minimum pension. The retirement age and the start of the pension would be 60 years old.
Benefits of Atal Pension Scheme
The purpose of the scheme is to ensure that no Indian citizen in their old age has to worry about illness, accidents, or diseases, providing a sense of security. Employees in the private sector or those who work for a company that does not offer them a pension can also apply for the scheme. If a subscriber joins and contributes between the ages of 18 and 40, he would receive a fixed pension ranging from Rs. 1000 to Rs. 5000. Contribution levels would fluctuate depending on when the subscriber joined.
What happens if you fail to pay?
- Your account will be frozen after 6 months.
- Your account will be deactivated after 12 months.
- The account will be closed after 24 months.
