Atal Pension Yojana Scheme – Details, Eligibility, and Benefits

What is the Atal Pension Yojana (APY) Scheme?

The Atal Pension Yojana (APY) is a government-sponsored retirement plan in India. It is mainly designed for workers in the unorganized sector, but any Indian citizen aged between 18 and 40 is eligible to join. 

The purpose of the Atal Pension Yojana is to offer you financial stability during your retirement years. This pension scheme is managed by the Pension Fund Regulatory and Development Authority (PFRDA) and the government also provides co-contributions for eligible subscribers.

Under the APY scheme, you make regular contributions to your pension account. Upon reaching the age of 60, you will begin receiving a monthly pension between ₹1,000 to ₹5,000, depending on your contributions. 

Atal Pension Yojana Details and Features

The key features of Atal Pension Yojana (APY) are mentioned below:

• Pension Options: Choose a guaranteed monthly pension of ₹1000, ₹2000, ₹3000, ₹4000, or ₹5000, starting at age 60.

• Atal Pension Yojana Eligibility: Open to individuals between the age of 18 and 40.

• Enrollment: You can join APY through any bank branch, post office, or digital platform offered by your bank.

• Nomination: When creating an APY account, you must provide nominee and spouse information.

• Contribution Frequency: Contribute monthly, quarterly, or every six months through auto-debit from your savings bank account.

• Accessing Statements: View and print transaction statements and PRAN cards online at the NSDL APY Portal.

• Annual Statement: A physical Atal Pension Yojana statement is mailed to your registered address once a year. Keep your address updated to ensure you receive it.

Atal Pension Yojana Benefits – Advantages of APY Scheme

The Atal Pension Yojana (APY) offers a number of benefits to its subscribers, making it an attractive option for retirement planning, especially for those in the unorganized sector:

• Guaranteed Pension: The Atal Pension Yojana Scheme guarantees a minimum monthly pension of ₹1,000 to ₹5,000 at age 60, depending on your contributions.

• Government Co-Contribution: The Indian government will also contribute 50% of the subscriber’s contribution or up to ₹1,000 per year, whichever amount is lower. This co-contribution is only available to individuals who are not covered by any Statutory Social Security Schemes and are not income taxpayers. The government will provide this co-contribution for a period of five years between the financial year 2015-16 to 2019-20.

• Tax Benefits: Atal Pension Yojana Scheme contributions qualify for tax deductions under Section 80CCD(1) of the Income Tax Act, 1961.

• Death Benefit: The spouse receives the same pension if the subscriber dies. If the spouse is also deceased, the nominee gets the accumulated corpus.

• Exit Option: You can exit early after at least 10 years of contributions, but you will only get the accumulated corpus with interest, not the guaranteed pension.

Atal Pension Yojana Age Limit Criteria

The Atal Pension Yojana age limit criteria for enrolment is as follows:

• Minimum Age: 18 years old

• Maximum Age: 40 years old

NOTE: 

• APY contributions must be made for at least 20 years, and the Atal Pension Yojana benefits start at the age of 60.

• Individuals who were enrolled under the Swavalamban Yojana will be automatically migrated to the Atal Pension Yojana.

APY and NPS Lite – Atal Pension Yojana Mobile Application

The official mobile application for the Atal Pension Yojana Scheme is called NPS Lite by Protean. It was developed by NSDL e-Governance Infrastructure Limited on behalf of PFRDA.

• Check Your Contributions: The APY mobile app lets you check your recent contributions at no cost. You can see your last five transactions anytime.

• Get Important Documents: Download your transaction statement and e-PRAN without any extra charges. It is simple and quick.

• Available on Android: You can download the APY mobile app from the Google Play Store by searching for "APY and NPS Lite."

How to Open an Atal Pension Yojana Account?

You can open an Atal Pension Yojana Scheme account in two ways: online or by visiting a Point of Presence-Service Provider (PoP-SP):

1. Atal Pension Yojana - Online Apply 

   • Step 1: Visit the National Pension System Trust website.

   • Step 2: Look for the "Open APY Account" section and proceed with the Atal Pension Yojana online application. Fill in the required personal Atal Pension Yojana Scheme details, such as your savings account number, email ID, and UID number.

   • Step 3: You will receive Atal Pension Yojana login credentials after registering. Use them to complete the KYC formalities online.

   • Step 4: Once successful, you will get an acknowledgement email with your APY registration number.

2. Through PoP-SP (Bank Branch/Post Office)

   • Locate PoP-SP: Find a PoP-SP near you. This could be your bank branch, post office, or any other authorized agency.

   • Form Collection: Collect the Atal Pension Scheme form from the PoP-SP.

   • Atal Pension Yojana Form Filling: Fill out the APY application form completely.

   • Submission: Submit the duly filled form and the necessary documents to the PoP-SP representative.

How to Download Atal Pension Yojana Form?

You can download the Atal Pension Yojana Scheme form from the official website of the National Pension System Authority (NPSCRA): 

• Visit the NPSCRA website.

• Click on the "Forms" tab.

• Under "Forms", you will find a section for "APY".

• Click on "Subscriber Registration Form" to download the PDF form.

Checkout Form Atal Pension Yojana: Atal Pension Yojana Form

Atal Pension Yojana Contribution (APY Premium)

1. Save More by Joining the Early

   Your contribution to a pension plan is lower when you start younger. The earlier you join the Atal Pension Scheme, the less you pay.

2. Contribution Rates by Age

   The following mentions a comparison of the monthly contribution rates for an 18-year-old and a 40-year-old based on their chosen pension slab in the Atal Pension Yojana Scheme:
   Age 18:

   • Contributing ₹42 per month will get you a pension slab of ₹1,000.

   • Contributing ₹210 per month will get you a pension slab of ₹5,000.

3. Age 40

   • Contributing ₹291 per month will get you a pension slab of ₹1,000.

   • Contributing ₹1,454 per month will get you a pension slab of ₹5,000.

4. Potential Pension Savings for Your Family

   Your family's total pension savings in the Atal Pension Scheme can range from ₹1.70 lakh to ₹8.50 lakh, depending on your contributions and pension choice. These values can vary with market conditions and consistent payments.

   NOTE: The CRA-NSDL will send SMS updates to the subscriber's registered mobile number to inform them about their contribution status.

Co-contribution by the Government of India to the Atal Pension Yojana (APY) Scheme 

The Government of India's co-contribution to the Atal Pension Yojana (APY) is no longer available for new subscribers. Following are some of the key points:

• Contribution Match: The government matched 50% of your APY contribution, up to ₹1000 per year.

• Atal Pension Yojana Eligibility Criteria:

  • Time Frame: Enroll between 1st June 2015 and 31st December 2015.

  • Social Security: You couldn't be part of any statutory social security scheme.

  • Taxpayer Status: You couldn't be an income taxpayer.

• Duration of Co-Contribution: Government co-contribution was available for 5 years, from the financial year 2015-16 to 2019-20.

NOTE: The new subscribers no longer receive the benefit of co-contribution by the Government of India.  However, the Atal Pension Yojana Scheme remains a good option for retirement planning.

Co-contributions by the State Government to Atal Pension Yojana (APY)

No State Co-Contribution for APY: State Governments do not offer co-contribution to the Atal Pension Scheme. The earlier co-contribution scheme was provided solely by the Government of India.

Atal Pension Yojana Table

If you want to avail of the benefits of Atal Pension Yojana Scheme on retirement, you must contribute per the table below. The monthly contribution amount depends on the entry age and the target income per month that you want after retirement.

How to Change Your APY Contribution Amount?

Refer to the following steps to change your regular contributions amount in the APY scheme:

• Subscribers have the option to change their pension amount once every year, specifically during the month of April.

• If a subscriber chooses to downgrade their pension, the difference in amount will be refunded directly to the registered bank account.

• Any upgrades or downgrades to the APY account come with a charge of Rs. 25, which the bank will collect upfront.

• Subscribers are expected to commit to the plan for at least 20 years if they join the scheme at the age of 40.

Charges for Default in APY Contribution Payment

Default charges are collected for delayed payments and will be included in the pension corpus of the subscriber of the Atal Pension Yojana Scheme:

What If You Can’t Contribute to the APY Scheme?

Keep the following key points in mind before you miss out your APY contributions:

• If you stop contributing, your account is frozen after 6 months.

• If you haven't contributed for 12 months, your account will be deactivated.

• If you haven't contributed for 24 months, your account is closed.

Where Are Your APY Contributions Invested?

The money contributed to the Atal Pension Yojana (APY) is invested in various financial instruments, but since the scheme guarantees a pension, the specific returns on investment are not the primary focus. The investment returns only become relevant if they exceed the guaranteed pension. In such cases, the subscriber’s nominees may receive a higher pension or a larger corpus upon the subscriber's death.

The funds are allocated in the following ways:

• Government Securities: 45% to 50%

• Debt Securities and Bank Term Deposits: 35% to 45%

• Equity and Related Instruments: 5% to 15%

• Asset-Backed Securities: Up to 5%

• Money Market Instruments: Up to 5%

This diversified investment approach helps ensure a balance between safety and potential returns.

Atal Pension Yojana Calculator

The Policybazaar Atal Pension Yojana Calculator allows you to estimate the monthly contribution you would need to make to get a desired pension amount after retirement.

Here is how to access the Calculator of Atal Pension Yojana from Policybazaar:

• Search for "Policybazaar Atal Pension Yojana Calculator" or  "APY Calculator Policybazaar".

• The calculator will ask you to choose the desired pension amount you'd like to receive after retirement. There are options for ₹1000, ₹2000, ₹3000, ₹4000, and ₹5000.

• Once you enter your desired pension amount, the calculator will show you the range of monthly contributions you would need to pay based on your current age.

How to Change Contribution Frequency in Atal Pension Yojana?

• To alter your contribution frequency (e.g., from quarterly to monthly or from half-yearly to quarterly), you need to submit a written request to your APY-SP branch.

• Provide a simple letter outlining your desired change and submit it to your nearest APY-SP branch.

How to Exit from the APY Scheme?

Exiting the Atal Pension Yojana Scheme depends on whether you are leaving due to reaching retirement age (60 years old) or voluntarily exiting early. Following is a breakdown of both scenarios:

1. Steps to Exit from Atal Pension Yojana (APY) Before Age 60

   • Voluntary Exit Process

     • To close your APY account before age 60, fill out the "Voluntary Exit" form.

     • You can download the form from the APY section of the National Pension System website or pick it up from an APY Service Provider (APY-SP) branch.

     • Submit the completed form, along with any other required documents, to your local APY-SP branch.

   • Savings Account Linked to APY

     • Don't close your savings bank account that's linked to your Atal Pension Yojana Scheme, even if you close your APY account.

     • The proceeds from the closure of your APY account will be transferred to your linked savings account. Closing your savings account may cause problems with the transfer.

2. Steps to Exit from Atal Pension Yojana (APY) Due to Death

   • Closure Process Due to Death

     • If the Atal Pension Yojana Scheme subscriber passes away, the claimant must submit the "APY Closure Form (Death)" and a copy of the death certificate to the APY-SP branch.

     • This form can be found on the same website or obtained from an APY-SP branch.

   • Pension for Spouse or Nominee

     • If the Atal Pension Yojana Scheme subscriber dies, the guaranteed monthly pension goes to the spouse.

     • If the spouse is not alive, the pension corpus (the total amount invested and returns) is given to the nominee designated by the subscriber.

   • Spouse's Option to Continue APY Account

     • If the Atal Pension Yojana Scheme subscriber dies before age 60, the spouse has the option to continue the APY account in their own name.

     • The spouse can continue contributing to the APY until the original subscriber has turned 60, ensuring continuous pension benefits.