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Atal Pension Yojana Benefits

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The Indian government announced the Atal Pension Yojana (APY) in June 2015. Atal Pension Yojana provides a pension for needy, unorganized sector workers. The expense of living is rising every day. In India, the migration of the number of earning members of families is increasing. The private sector or some industries do not guarantee a pension after retirement. Thus, workers worry about their financial security in their retirement years. Because with age earning potential fades. That is why the government set up this scheme to encourage them to save for retirement. In this article, we will see a few Atal Pension Yojana Benefits and other details about this scheme.

Topics in this article

What are Atal pension yojana maturity benefits?
What are Atal pension yojana tax benefits?
Applying for Atal Pension Yojana
Who is eligible to apply for the Atal Pension Yojana?
How to apply for Atal Pension Yojana?
How much does one have to contribute to the Atal Pension Yojana monthly?

What are Atal pension yojana maturity benefits?

how to apply for Atal Pension Yojana, Atal Pension Yojana Benefits, Atal Pension Yojana Tax Benefits
Atal Pension Yojana Benefits
  • The Government of India will guarantee the minimum Atal Pension Yojana benefits.
  • From age 60 onwards, you will get a pension ranging from 1000 to 5000 Rs per month depending on the contribution.
  • In case a person under Atal pension yojana dies, his or her partner will get a pension. After their death, the nominee of that person gets the lump sum amount.
  • If the returns on investment are fewer than the expected returns for a guaranteed least pension over a set duration of time. The government will cover the difference.
  • If the investment returns are better than the predicted returns for a guaranteed least pension over a period, subscribers will get the excess amount.
  • Subscribers can change monthly contribution options once a year.

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What are Atal pension yojana tax benefits?

A subscriber of the Atal pension yojana is eligible for the Atal pension yojana tax benefit for the contribution up to a certain limit. Over and beyond the Rs. 1.5 lakhs, the Atal Pension Yojana tax benefits are available under Section 80CCD (1B). This will help to lower the subscriber’s taxable income.

Applying for Atal Pension Yojana

Who is eligible to apply for the Atal Pension Yojana?

  • The individual must be an Indian citizen.
  • Anyone between the ages of 18 and 40, is eligible for this yojana.
  • They should have either savings or a post-savings bank account.
  • The individual must have an Aadhaar card and a phone number.

How to apply for Atal Pension Yojana?

  • You must first have a savings account, or if you don’t have one, you can start an APY account at any national bank.
  • You can fill the form out in person at the bank or download it from the bank’s website.
  • Attach a photocopy of your Aadhaar card and your current phone number to the form.
  • After the bank has approved your application, you will receive a confirmation message.
  • You will get regular updates about account balance, contribution credit via SMS.
  • You will receive a physical statement of account per year.

How much does one have to contribute to the Atal Pension Yojana monthly?

You will receive the amount of pension according to the age at which you contribute and how much you will contribute. It is according to the chart below.

Age Minimum guaranteed pension(monthly)
1000 Rs 2000 Rs 3000 Rs 4000 Rs 5000 Rs
18 42 84 126 168 210
20 50 100 150 198 248
22 59 117 177 234 292
24 70 139 208 277 346
26 82 164 246 327 409
28 97 194 292 388 485
30 116 231 347 462 577
32 138 276 414 551 689
34 165 330 495 659 824
36 198 396 594 792 990
38 240 480 720 957 1196
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NOTE: The abovementioned data is as mentioned by the government and further shared the same by multiple banks. Please recheck the full chart with the mentioned data here if any changes occur in the future.

Poor workers from the unorganized sector and those who work in the private sector can take advantage of the Atal Pension Yojana benefits. This scheme aims to encourage people to save for their future. The subscriber has to pay some amount every month. After the age of 60, they will get a pension from the government depending on how much they paid per month.

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