The government has taken another big decision to ensure income security in old age for lakhs of low-income and unorganised sector workers. This time the Union Cabinet has extended the government retirement scheme Atal Pension Yojana (APY) for another five years. Which means that this opportunity will be available till the financial year 2030-31.
How is this scheme different from the National Pension System
The APY scheme is slightly different from the National Pension System (NPS). This scheme is designed only for the unorganised sector.
Who cannot apply for this scheme
People who file income tax returns cannot apply for this scheme. NPS is a great scheme for salaried professionals in both the government and private sectors.
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What is Atal Pension Yojana?
APY is a government-subsidised social security scheme. This scheme provides a guaranteed minimum monthly pension of Rs 1,000 to Rs 5,000 to beneficiaries after the age of 60. By registering in this scheme, the beneficiaries can get this pension till death. The amount of pension depends on the contributions of the members registered under the APY scheme. Both the subscriber and his/her spouse can get the pension benefit.
What are the benefits available in APY?
This scheme is designed to provide financial security to the unorganized sector workers during their retirement years. After the death of the subscriber, his/her spouse will also be entitled to receive the same amount of pension till death under this scheme. After the death of both the subscriber and his/her spouse, the pension fund accumulated by the subscriber till the age of 60 years will be received by the nominee.
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Who is eligible to apply for this scheme
All Indian citizens between the ages of 18 and 40 are eligible to apply for the APY scheme. Only those with a bank account linked to their mobile number and Aadhaar number can apply.
Individuals have to contribute to APY for a minimum of 20 years for this scheme. Beneficiaries of Swavalamban Scheme who have been shifted to APY are also eligible to enroll. However, those who pay income tax are not eligible to apply for APY Scheme. This has come into effect from October 1, 2022.
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How to apply?
Step 1: Collect APY registration form from any participating bank branch or post office.
Step 2: Fill all the required information including bank account or post office savings account details. You can submit the form directly to the bank or post office where you have your savings account.
Step 3: Before submitting the form, ensure that you have filled your personal details including your full name, date of birth and age, as well as your mobile number, email address and Aadhaar number correctly.
Step 4: Married individuals will also have to provide the name and age of their spouse.
Step 5: All applicants will have to nominate a nominee and mention the relationship with him/her.
Step 6: Mention the desired monthly pension amount.
Step 7: Write the date and place at the end of the form and provide a signature or thumb impression to prove that you understand the terms and conditions of APY.
All eligible beneficiaries can also apply for this scheme online through the NPS Trust website: https://npstrust.org.in/open-apy-account.