What is APY?
The Atal Pension Yojana (APY), a government-backed social security program, provides a guaranteed minimum monthly pension ranging from Rs 1,000 to Rs 5,000
to beneficiaries after they turn 60. This pension continues until death. The APY is overseen by the Pension Fund Regulatory and Development Authority (PFRDA) and operates on a voluntary contribution basis. The scheme aims to offer financial security to individuals, particularly workers in the unorganized sector, during their retirement years. Those between the ages of 18 and 40 can apply, provided they have an active mobile number and a bank account linked to Aadhaar. However, individuals who pay income tax are not eligible to participate in the APY scheme, with this rule being effective from October 1, 2022. The APY was extended for five more years by the Union Cabinet, until FY2030-31, to ensure old-age income security for low-income and unorganized-sector workers, enhance financial inclusion, and help India transition to a pensioned society.
Eligibility Criteria
To be eligible for the Atal Pension Yojana (APY), individuals must fall within the age bracket of 18 to 40 years. Furthermore, applicants must be Indian citizens. They should possess an active mobile number and maintain a bank account linked to their Aadhaar card. It is crucial to note that those who are income tax payers are not eligible to apply for the APY scheme. This restriction was implemented from October 1, 2022. The scheme aims to cater specifically to those in the unorganized sector, ensuring they have access to financial security during their retirement. Those already benefiting from the Swavalamban Scheme, who have transitioned to the APY, are also eligible for enrollment. This highlights the scheme's inclusive approach, making it accessible to various groups.
How to Apply
Applying for the Atal Pension Yojana (APY) is a straightforward process. The first step involves obtaining the APY registration form from any participating bank branch or post office. Alternatively, the form can be downloaded directly from the official websites of these institutions or the PFRDA. Once the form is acquired, you must fill in all the required details. It is essential to include accurate information. Attach a photocopy of your Aadhaar card along with the completed form and submit it to the bank. To facilitate ease of understanding, the APY form is accessible in various regional languages. Upon successful approval, applicants will receive a confirmation message via SMS. Additionally, applicants can apply for the scheme online through the website of the NPS Trust: https://npstrust.org.in/open-apy-account.
Application Steps
To apply for the Atal Pension Yojana (APY), follow these steps. Begin by collecting the APY registration form from any participating bank or post office. Proceed to fill in the required details accurately, including your full name, date of birth, age, mobile number, email address, and Aadhaar number. If married, provide your spouse's name and age. Specify the desired monthly pension amount. Next, assign a nominee and indicate your relationship with them. After completing the form, provide the date and location, and affix your signature or thumb impression to signify your understanding and acceptance of the APY's terms and conditions. Submit the completed form along with supporting documents to the relevant bank or post office where you have your savings account.
Pension Details
The pension amount under the Atal Pension Yojana (APY) depends on the contributions made by the members. Beneficiaries can receive a minimum monthly pension ranging from Rs 1,000 to Rs 5,000 after reaching the age of 60. The pension is disbursed until the death of the beneficiary. Both the subscriber and their spouse are entitled to the pension benefits. After the subscriber's demise, the spouse continues to receive the same pension amount. Upon the death of both the subscriber and the spouse, the nominee receives the pension fund accumulated until the subscriber's age of 60. For example, if a member enrolls at 18 for a monthly pension of Rs 5,000, the required monthly contribution will be Rs 210. Until the age of 60, the beneficiary will pay for 42 years, investing a total of Rs 1,05,840. The corpus fund will grow to Rs 7,54,097.
