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Atal Pension Yojana – Everything You Need to Know
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Find all the details about Atal Pension Yojna in this article. The Government of India launched this Scheme in June 2015. The main goal of Atal Pension Yojna is to aid workers from unorganized sectors, saving money for their retirement while working.

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Index

  1. What is Atal Pension Yojana?
  2. The Eligibility for Atal Pension Scheme
  3. Recurrent Contribution and Monthly Pension under Atal Pension Scheme
  4. Atal Pension Yojana – Why should you start contributing today?
  5. Who are not eligible for the Government’s co-contribution scheme?
  6. Know about Applying for Atal Pension Yojana
  7. Know About the Maintenance Charges of Atal Pension Yojna account
  8. Atal Pension Yojana – Penalties 
  9. Withdrawing from Atal Pension Yojana

 

What is Atal Pension Yojana?

The Government launched the Atal Pension Yojana to aid with the financial planning of people who are working in unorganized divisions of India. It includes services like housemaids, drivers, agricultural labors, fishermen, and the like. One can also consider this Scheme as a replacement for the previous administration’s Swavalambal Yojna. However, it wasn’t popular among the citizens across the country.

With Atal Pension Scheme, workers can save money for their post-retirement life while working. There is a guaranteed return once the worker is retired by investing in this Scheme. The Central Government declared to co-contribute 50% of the total contribution by a worker or up to 100 INR a year. Nonetheless, it is only for those individuals who have joined the Atal Pension Yojna before December 2015. Further, the co-contribution would be made only between Financial Year 2015 to 2020. 

 

The Eligibility for Atal Pension Scheme

You are eligible for Atal Pension Yojna if you meet the below-mentioned conditions:

  • Has an Indian nationality
  • Has a valid account in a bank
  • Aged within 18 to 40 years

 

Recurrent Contribution and Monthly Pension under Atal Pension Scheme

Workers can avail from the pension plan in Atal Pension Yojana, which is a recurrent contribution-based. It also ensures a fixed pension of 1000INR or 2000INR or 3000INR or 4000INR or 5000INR every month after you turn 60. 

Now, are you wondering about how much to contribute every month? Well, it is up to the fixed monthly pension you choose along with your age at a time you begin your contributions.  

 

Atal Pension Yojana – Why should you start contributing today?

Here are the significant advantages of the Atal Pension Yojana:

  • It ensures a monthly pension of 1000 to 5000 INR to its contributors.
  • A subscriber could also increase or decrease his pension amount once a year during the accumulation period.
  • If the contributor demise, the spouse of the subscriber shall entitle to the same amount of pension till his life spam. 
  •  However, if both the subscriber and spouse demises, the nominee entitles to obtain the pension capital, the contributor has accumulated till he aged 60. 
  • The spouse of the contributor also gets options to exit the Scheme and make claims, continue the account for the outstanding years in case of death of contributor before 60 years.
  •  The spouse entitles to get the same amount of pension as the contributor until his demise in the following case.

 

Who are not eligible for the Government’s co-contribution scheme? 

You are not eligible for the Government’s co-contribution scheme if you get benefits from any other social security yojna and are a taxpayer

 

Know about Applying for Atal Pension Yojana

You could get the Atal Pension Yojna registration form from any bank or post office. It is better to go to a branch where you hold a savings account. If you don’t have one, you will need to open a savings account to avail this Atal Pension Scheme

You could enroll yourself for Atal Pension Yojana directly via internet banking of your savings account. Further, there is also an option of auto-debit for your contributions. This way, you can pay your premium automatically till you turn 60. 

Here are the steps to enol into Atal Pension Yojana via State Bank Of India online portal:

Atal Pension Yojana

  • Login into the net banking account
  • Go to the tab, “My Account.”
  • Select “Social Security Schemes”
  • Under “Select Scheme” select the option Atal Pension Yojna
  • Link your savings account number that you won’t associate with the Atal Pension Scheme
  • Submit
  • Select the CIF number (Customer Identification Number)
  • Submit
  • Fill the e-form according to instructions
  • Fill personal details like Aadhar and contact information
  • Fill Nominee details
  • Select Pension details including pension amount, contribution periodicity and contribution amount
  • Re-check the details 
  • Submit
  • Download the acknowledgment

For unsubscribing from the Atal Pension Yojana, you will need to visit the main branch of your bank to do the required paperwork for discontinuation.

 

Know About the Maintenance Charges of Atal Pension Yojna account

Here are the few fees you will need to pay periodically, usually per annum to maintain your account under Atal Pension Scheme:

  • Initial registration fees per subscriber – Paid by the Government
  • Subsequent Persistence
  • Charges to open up the account
  • Yearly account maintenance charge
  • Fees for investment management
  • Fees for investment maintenance

 

Atal Pension Yojana – Penalties 

If the balance of your account turns zero because of the various deduction due to the maintenance charges and interests, they would immediately close your account.  

Here are the two scenarios:

  • For continous defaults of 06 months – freezing of pension account
  • For continous defaults of 12 months – the closing of your pension account, deduction of said fees, charges, and interest, before giving the remaining amount to the contributor

Here are the charges for a delayed contribution of every 100 rupees from Atal Pension Yojna:

  • 1 INR penalty for participation up to 100 INR each month
  • 2 INR penalty for contribution up to 101- 500 INR each month
  • 5 INR penalty for contribution up to 501 to 1000 INR each month
  • 10 INR penalty for participation exceeding 1001 INR each month

 

Withdrawing from Atal Pension Yojana

You could withdraw from your Atal Pension Yojana Account after you complete 60 years of age. After completion of the attaining period, you could contact your respective post office and bank. Here, you can request for withdrawal of your pension. 

However, if you would like to exit before you turn 60, it is not permitted. Though in some exceptional cases like terminal illness or demise of the contributor, pre-mature withdrawal is allowed. If a subscriber opts for the voluntary exit from Atal Pension Yojana, he is only allowed the contributions he made along with the actual net income earned on his participation. Such contributors do not entitle the government co-contribution and the income earned on the co-contribution of the Government.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

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Rucha Joshi
Rucha Joshi
Rucha Joshi is fueled by her passion for creative writing. She is eager to turn information into action. With her hunger for knowledge, she considers herself a forever student. She's currently working as a content writer and is always interested in a challenge.

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