There is a lack of pension products in India and the one which is available are offered by most of the private firms which are not popular among Indians. In such a case, retirement planning had always been a hard task for the people in India. To deal with this issue, the government of India launched Atal Pension Yojana which is nothing but a pension scheme. Here are all the details about the Atal Pension Yojana.
What is Atal Pension Yojana Scheme all About?
As per the scheme documents, under the scheme, the people who subscribe are eligible for a monthly benefit of Rs 1000 to Rs 5000 and this amount depends on their investment. In the scheme, the government will also make a contribution and the amount of contribution is 50% of the contribution of Rs 1000 depending on whichever is lower. This contribution from the government comes in form of annual contribution for the initial 5 years of the scheme.
Atal Pension Scheme Financial Calculator?
The financial calculation sheet is made available on the web by the government and you can certainly access the financial calculator. We have mentioned the link below so as to make it easy for you to find the calculation sheet. This would help you in finding out the minimum contribution required for the required pension amount.
For example, if you want a pension of Rs 1,000 then your total contribution amount should be RS 1.7 Lakhs and monthly contribution from you would vary as per your age.
Link to Financial Calculator is – https://npscra.nsdl.co.in/nsdl/scheme-details/APY_Subscribers_Contribution_Chart.pdf
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What is the Eligibility Criteria for the Scheme?
The eligibility criteria for Atal Pension Yojana is mentioned below
- The scheme is valid only Indian Citizen whose age is between 18 years and 40 years.
- The applicant must have an Aadhaar Card and the mobile number of the applicant should be linked to the Aadhaar number as OTP would be sent to the mobile number.
- It is mandatory for the applicant to contribute for a period of 20 years before the pension is started.
How to Apply for the Scheme?
If you would like to apply for the scheme then follow the steps mentioned below
- You can start the process by visiting the official website which is enps.nsdl.com
- Once the website is displayed, click on the Registration button and a new page will be displayed.
- You would now need to enter your Aadhaar Number and click on the Generate OTP button. This will trigger an OTP request and you will receive OTP on your mobile. Enter the OTP in the given box and click on submit button
- The form for APY will now be displayed and you would now need to fill in the complete details along with the personal details, bank details and even the details of the family.
- In the final step, you need to enter the pension amount along with the frequency of your contribution. Once all the details have been entered, you can simply submit the documents and make the first payment to enrollin the scheme.
What are the Benefits of the Scheme?
The benefits of the scheme are mentioned below
- The scheme would help people in financial planning by securing their retirement.
- This scheme would also help people in tax saving as the contribution made under the scheme is tax deductible.
- The scheme will offer financial security to the people after retirement
Who will back the Plan?
The plan is being backed by the central government as the government is making arrangements for the funds required for the execution of the scheme.
Details of the Scheme
Scheme Name – Atal Pension Yojana
Scheme Launched By –Mr. Narendra Modi
Scheme Launch Date – June 2015
Is this the Way Forward for the Nation?
The pension scheme is not very popular in India but with the launch of such schemes, the government can set a trend for the many pension schemes. The pension amount in the scheme is certainly lower and the government should increase the pension amount and the people should have the flexibility to choose the pension amount based on their willingness to contribute the money. To conclude, we can say that the scheme is a good initiative by the government of India.