Atal Pension Yojna – Complete guide on benefits, eligibility and how to apply for this scheme

Atal Pension Yojana SchemeAtal Pension Yojna – Complete guide on benefits, eligibility and how to apply for this scheme


Few weeks back, Mr. Narendra Modi has launched Atal Pension Yojna for individuals in the unorganized sector. This scheme aims to provide a regular pension of Rs 1,000 to Rs 5,000 per month after 60 years of retirement. What is Atal Pension Yojna Scheme all about? What are the benefits of this Atal Pension Scheme? How to apply and who is eligible to subscribe to this Atal Pension Yojna Scheme?

Features and eligibility to join in Atal Pension Yojna Scheme


  • This scheme aims to provide definite pension after retirement for unorganized sector workers.
  • Any individual who is in 18 to 40 years of age group can subscribe to this pension plan.
  • Pension amount is Rs 1,000 to Rs 5,000 per month depending on the premiums paid.
  • Premiums ranging between Rs 42 to Rs 1,454 per month depending on the age and pension amount opted by individuals.
  • Any individual can subscribe to this who is not availing any benefits or not subscribed to any statutory social security scheme.

Also Read: How good is Pradhan Mantri Jeevan Jyothi Bima Life Insurance Scheme?

How to apply for the Atal Pension Yojna Scheme?


You need to follow the below process to subscribe and apply for the Atal Pension Scheme.

  • You need to have Savings Bank Account along with Aadhar Card.
  • Approach your bank, fill the application form and subscribe to this scheme
  • While filling application form, opt for pension amount you are expecting (Rs 1,000 to RS 5,000) and the premium would be automatically calculated based on that.
  • Subscribe before 1st June, 2015, so that you can start this scheme from Jun-2015 onwards.
  • You need to renew every year before 1st June to keep this pension scheme active.

What is the minimum premium / contribution payable?


This depends on the age of the person. If you are 18 years of age and looking for Rs 1,000 pension per month, you need to contribute Rs 42 per month. If you are 40 years of age and looking for Rs 1,000 pension per month, you need to contribute Rs 291 per month.

What is the maximum premium payable?


This also depends on the age of the person. If you are 18 years of age and looking for Rs 5,000 pension per month, you need to contribute Rs 210 per month. If you are 40 years of age and looking for Rs 1,000 pension per month, you need to contribute Rs 1,454 per month.

Premium Chart is indicated below


Atal Pension Yojana-Premiums

Is there any Govt contribution to this Atal Pension Yojna Scheme?


Govt. of India has indicated that it would contribute 50% of premium or Rs 1,000 per annum, whichever is lower to this Atal Pension Yojna Scheme. However, there are certain conditions for this:

  • Govt of India would contribute this amount for any individual who has joined this scheme from 1st June, 2015 to 31st December, 2015.
  • Individuals who are not covered in any statutory social security schemes including EPF.
  • Not an income tax payee.
  • Govt. of India would contribute such premium for a period of 5 years starting from 1st June, 2015 onwards.

Can we increase or reduce premium / contribution payable?


Yes. Any subscriber to this scheme can add or reduce premium/contribution any time.

How to withdraw from the Atal Pension Yojana Scheme?


Subscribe would get withdrawn from this scheme by any of the following:

  • Once an individual would get 60 years of age, they need to sign annuitization of pension wealth and regular  pension would be paid immediately.
  • In case of death of the subscriber, spouse would still get a pension. In case even spouse dies, their nominee would get the pension wealth.

Also Read: Should you opt for Pradhan Mantri Suraksha Bima Yojana for accidental death coverage?

Negative points of Atal Pension Yojna Scheme


  • This scheme offers Rs 7.8% to 8% returns approx. There are better schemes like Public Provident Fund, etc., which offers more than 8.5%.
  • This is not a liquid investment. Premature withdrawal not allowed. You cannot withdraw and come out of it before retirement.
  • Since nothing is specified, we can assume that Pension amount is taxable.
  • Even small employees are covered through Employee Provident Fund, which is also a social security scheme. This makes the majority of the subscribers ineligible to get Govt. contribution.

Conclusion: This scheme is good for low income group and non tax payers. However, there are better schemes like EPF, PPF etc., where you would get higher returns.

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Suresh
Atal Pension Yojna – Complete guide on benefits, eligibility and how to apply for this scheme

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