The Indian government started the Atal Pension Yojana (APY) in 2015. It is a pension plan that is backed by the government. Its goal is to give workers in the unorganized sector who don’t have access to official pension plans an income that they can count on.
Some of the most important parts of the Atal Pension Yojana are:
1.Eligibility: The plan is open to any Indian national between the ages of 18 and 40.
2.Income Amount: The plan offers a set minimum income of between Rs. 1,000 and Rs. 5,000 per month, based on how much the person contributed and how old they were when they joined the scheme.
3.Contribution Period: The plan forces people to put money into their pension fund every month until they turn 60. The minimum length of time for a gift is 20 years.
4.Contribution Amount: The contribution amount depends on the salary amount you choose, your age when you start contributing, and how long you have been contributing. The amount a person has to pay into the plan is smaller the faster they join.
5.Promised income: The plan gives the member and his or her spouse an income that is promised. If the subscriber dies, the pension will go to the customer’s partner. If both the subscriber and his or her partner die at the same time, the nominee will get the salary sum.
6.Voluntary Exit and Withdrawal: People can leave the plan on their own before they turn 60. But if they leave before the minimum contribution time is over, they will only get back the amount they put in. There will be no government co-contribution or interest on it.
7.Government Co-contribution: The government makes a co-contribution of 50% of the subscriber’s contribution or Rs. 1,000 per year, whichever is lower, for a period of five years to eligible subscribers who joined the scheme before December 31, 2015, and who are not covered by any other statutory social security scheme.
The goal of the Atal Pension Yojana is to give workers in the informal sector a safe way to make money in their old age. It pushes people to save for retirement and gives them a set salary amount to make sure they have enough money in their later years. The Pension Fund Regulatory and Development Authority (PFRDA) is in charge of the plan, and it can be accessed in India through certain banks and post offices.