What is Atal Pension Yojana and who can benefit from it? Are you eligible? Find out

Atal Pension Yojana:  APY or the Atal Pension Yojana is a pension scheme for citizens of India focussed on the unorganised sector workers. Under the APY scheme, guaranteed minimum pension of Rs 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers.

Why does one need it?
Assured monthly income not only helps individuals lead a dignified life but also reduces financial dependence on their spouse, children or anybody else.

-- Decreased income earning potential with age
-- The rise of nuclear family-Migration of earning members
-- Rise in cost of living
-- Increased longevity

Who can subscribe to APY?
Any Citizen of India can join APY scheme. Find below the eligibility criteria to avail the benefits

-- The age of the subscriber should be between 18 - 40 years
-- He / She should have a savings bank account/ open a savings bank account
-- The prospective applicant should be in possession of mobile number and its details are to be furnished to the bank during registration
-- Government co-contribution is available for 5 years, i.e., from 2015-16 to 2019-20 for the subscribers who join the scheme during the period from 1st June, 2015 to 31st December, 2015 and who are not covered by any Statutory Social Security Schemes and are not income taxpayers

The contributions under APY are invested as per the investment guidelines prescribed by the Ministry of Finance, Government of India. The APY scheme is administered by the PFRDA/GOVERNMENT.

How much should I invest in APY to get the guaranteed pension of Rs 1000?

Age of Joining        Years of Contribution         Indicative Monthly contribution (Rs)
         18                              42                                                      42
         20                              40                                                      50
         25                              35                                                      76
         30                              30                                                      116
         35                              25                                                      181
         40                              20                                                      291

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What is the procedure for opening APY Account?

-- Approach the bank branch where individual’s savings bank account is held
-- Fill up the APY registration form
-- Provide Aadhaar/Mobile Number
-- Ensure keeping the required balance in the savings bank account for the transfer of monthly contribution