The Atal Pension Yojana is a government pension scheme. It was started to help workers who do not have a regular job or any pension. These are mostly people working in the unorganised sector, such as daily wage labourers, domestic helpers, farmers, drivers, and similar occupations. The Atal Pension Yojana helps them save money regularly. When they turn 60, they get a monthly pension.
The Atal Pension Yojana was launched on 9 May 2015 and started from 1 June 2015. This scheme was announced in the Union Budget of 2015-16. It is managed by the Pension Fund Regulatory and Development Authority (PFRDA). The goal is to make sure every Indian has some financial help in old age.
What is Atal Pension Yojana?
Atal Pension Yojana is a savings-based pension scheme made for people working in jobs without any retirement benefits. These jobs are in the unorganised sector where there is no job security or fixed income. Under this scheme, a person pays a small fixed amount every month, quarter, or half-year. After they turn 60, they start getting a pension every month.
The amount of pension depends on how much the person saved and for how many years. The options for pension are Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, and Rs. 5000 per month. The longer and more a person saves, the better pension they get. This scheme is run and backed by the Central Government.
Benefits of Atal Pension Yojana
Atal Pension Yojana gives three types of benefits to the subscriber, spouse, and nominee.
1. Monthly Pension after 60 Years
You will get a fixed amount every month once you reach 60 years of age. The amount can be ₹1000, ₹2000, ₹3000, ₹4000 or ₹5000 based on what you chose while joining.
2. Pension for Spouse
After your death, your spouse will get the same pension every month for the rest of their life.
3. Nominee Gets the Saved Amount
When both you and your spouse are no more, your nominee (your child or any other person you named) will get the total pension savings collected till you turned 60.
4. Guaranteed by Government
The amount of pension you choose is guaranteed by the Government of India. Even if your money does not grow much, the government will fill the gap.
5. Higher Returns if Market Grows
If your money grows well in the market, then your pension can be more than the amount you selected.
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Who Can Join Atal Pension Yojana?
Anyone who meets the following rules can join Atal Pension Yojana:
- Must be a citizen of India.
- Age should be between 18 and 40 years.
- Must have a savings bank account.
- Must not be an income tax payer as per the rule from 1st October 2022.
Contribution and Payment Method
When you join the Atal Pension Yojana, you have to put money every month, every three months, or every six months. The amount depends on your age and the pension you choose.
- You will keep paying till you reach the age of 60 years.
- The money will be taken directly from your bank account by auto-debit.
- The younger you join, the less you pay each time.
Here is a simple example from the chart:
If you are 20 years old and you want ₹5000 pension per month, then you will pay ₹248 every month till you turn 60. If you are 35 and want the same pension, you’ll need to pay ₹902 every month.
What Happens After Death?
Before You Turn 60
If you die before turning 60, your spouse can choose to continue putting the money until you would have turned 60. Then your spouse will get the same pension. After your spouse’s death, the nominee will get the pension savings.
After You Turn 60
If you die after 60, your spouse gets the same pension. After the spouse’s death, the nominee gets the total collected amount.
Exit and Withdrawal Rules in Atal Pension Yojana
On Completion of 60 Years
- You will start receiving your monthly pension.
- The pension can be higher if the returns from the market were good.
In Case of Death or Illness
- In case of death or certain serious illnesses, the collected amount can be taken before 60.
- The money will be given to the nominee or subscriber depending on the case.
Voluntary Exit Before 60
- If you leave the scheme before 60, you will get back your own contribution and the interest earned on it.
- But you will not get the government’s part of the money or its interest.
If Found to be a Taxpayer
- If someone joined after 1st October 2022 and is found to be a taxpayer, their Atal Pension Yojana account will be closed.
- The collected pension amount will be returned to them.
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Table of Contributions
Let’s see a quick example from the official chart to understand how much one needs to pay:
The full table has contributions for every age between 18 and 40. You can choose monthly, quarterly, or half-yearly payments.
Why Should You Join Atal Pension Yojana?
Here are simple reasons:
- You get financial help after retirement.
- Your family is also covered in case of death.
- It is safe because the government guarantees the pension.
- You can start saving with a small amount.
- The younger you start, the lower your payment.
Who Manages Atal Pension Yojana?
- The scheme is managed by Pension Fund Regulatory and Development Authority (PFRDA).
- Banks and post offices help in enrolling people.
Summary of Atal Pension Yojana
Atal Pension Yojana is a simple and helpful scheme. It is made for people who do not have any pension after retirement. The scheme takes care of the subscriber, their spouse, and nominee. It allows small savings over time to turn into a regular monthly income in old age.
Joining Atal Pension Yojana is a good step for any young person with no fixed retirement income plan. It gives peace of mind and financial safety for the future.
What is the age limit for joining Atal Pension Yojana?
You can join between the age of 18 and 40 years.
Can I change the pension amount later?
Yes, you can change the pension amount once a year.
What happens if I miss a payment?
Your account can be frozen, deactivated, or closed. But there is also a chance to revive it by paying dues.
Can people with jobs join this scheme?
Yes, but only if they are not paying income tax.
