How to Join the Atal Pension Yojana Scheme
The Atal Pension Yojana Scheme is a government-backed pension scheme that offers a guaranteed monthly pension to its subscribers. The scheme is open to all Indian citizens between the ages of 18 and 40, and provides an opportunity for them to secure their financial future.
The scheme has several benefits, including a fixed monthly pension after retirement, tax benefits, and death benefits. It also gives subscribers the option to choose their own contribution amount, based on their individual needs and circumstances.
Joining the Atal Pension Yojana Scheme is simple and affordable. The eligibility criteria are straightforward, and the minimum contribution amount is very reasonable. There are also no penalties for stopping contributions, making it an ideal option for those who are not sure about their long-term financial commitments.
What is the Atal Pension Yojana Scheme.
The Atal Pension Yojana (APY) Scheme is a government-backed pension scheme in India that was launched in 2015. The scheme is open to all Indian citizens aged 18-40 years, and provides for a guaranteed minimum monthly pension of Rs. 1,000-5,000 from the age of 60 years. The scheme also offers death and disability benefits to subscribers and their families.
The main benefits of joining the APY Scheme are:
1) A guaranteed minimum monthly pension after retirement: The scheme provides for a guaranteed minimum monthly pension of Rs. 1,000-5,000 from the age of 60 years. This ensures a regular income stream during retirement, which can help meet daily living expenses and other needs such as healthcare.
2) Death and disability benefits: The scheme also offers death and disability benefits to subscribers and their families. In case of death before retirement, the spouse or dependent children of the subscriber will receive a lump sum payment equal to the subscriber's contributions plus interest accrued thereon. In case of disability, the subscriber will receive a lump sum payment equal to his/her contributions plus interest accrued thereon.
3) Tax benefits: Contributions made towards the APY Scheme are eligible for deduction under Section 80C of the Income Tax Act 1961. This tax deduction can help reduce your overall tax liability and increase your post-tax returns on investment.
4) Flexibility in contributions: The APY Scheme allows subscribers to make flexible contributions towards their pension account, depending on their needs and resources. This flexibility helps ensure that you can continue to save for your retirement even if your income varies over time.
5) Government guarantee: The APY Scheme is backed by the Government of India, which provides a guarantee of minimum monthly pension payments after retirement. This government guarantee adds an element of safety and security to the scheme, making it a viable option for long-term savings and investment.
How can I join the Atal Pension Yojana Scheme.
How much does it cost to join the Atal Pension Yojana Scheme.
The Atal Pension Yojana scheme has a very flexible contribution structure. You can start contributing any amount from as low as Rs. 42 per month to as high as Rs. 1,454 per month, depending on your age and desired pension amount. The government also co-contributes 50% of your total contributions, up to a maximum of Rs. 1,000 per year, for those who join the scheme before 31st December, 2015.