Atal Pension Yojana (APY).

Atal Pension Yojana (APY) is a government-sponsored pension scheme in India launched in 2015 with the objective of providing pension benefits to unorganized sector workers. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA).

Here are some key features of the Atal Pension Yojana:

  1. Eligibility: The scheme is open to all citizens of India between the age of 18 and 40 years.
  2. Pension amount: The scheme offers a minimum guaranteed pension of Rs. 1,000 per month to a maximum of Rs. 5,000 per month, depending on the contribution made and the age at which the individual joins the scheme.
  3. Contribution: The individual has to make a monthly contribution to the scheme until the age of 60 years. The contribution amount depends on the pension amount chosen, the age of the individual, and the number of years of contribution.
  4. Enrolment: The individual can enroll in the scheme through a bank or post office. The Aadhaar number is mandatory for enrolling in the scheme.
  5. Withdrawals: The individual can withdraw the accumulated corpus at the age of 60 years. In case of the individual’s death, the spouse can continue to receive the pension or the nominee can withdraw the corpus.
  6. Penalty for non-contribution: If the individual fails to make the contribution for a continuous period of six months, the account is frozen. If the contributions are not resumed within two years, the account is closed and the corpus is refunded after deducting the penalty.
  7. Tax benefits: The contributions made to the scheme are eligible for a tax deduction under Section 80CCD of the Income Tax Act, up to a maximum of Rs. 50,000 per year.

In conclusion, Atal Pension Yojana is a government-sponsored pension scheme that offers pension benefits to unorganized sector workers. The scheme provides a minimum guaranteed pension of Rs. 1,000 per month to a maximum of Rs. 5,000 per month, depending on the contribution made and the age at which the individual joins the scheme. It is advisable to evaluate the different pension schemes and choose the one that best suits your retirement needs.