The Government of India is concerned about the old-age income security of the working poor and is focused on encouraging and enabling them to save for their retirement.
To address the longevity risks among the workers in the unorganized sector and to encourage the workers in the unorganized sector to save for their retirement voluntarily.
The GoI has therefore announced a new scheme called Atal Pension Yojana (APY) in 2015-16 budget. The APY is focussed on all citizens in the unorganized sector
The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS architecture.
HIGHLIGHTS OF ATAL PENSION YOJANA
- Under the APY, subscribers are guaranteed a minimum monthly pension ranging between Rs. 1000 and Rs. 5000.
- The GoI would guarantee the benefit of a minimum pension.
- The scheme requires a savings bank account or a post-office savings account to be linked to the scheme.
Monthly Pension Contributions Chart
| Age | Monthly Pension of Rs 1000 | Monthly Pension of Rs 2000 | Monthly Pension of Rs 3000 | Monthly Pension of Rs 4000 | Monthly Pension of Rs 5000 |
|---|---|---|---|---|---|
| 18 | 42 | 84 | 126 | 168 | 210 |
| 20 | 50 | 100 | 150 | 198 | 248 |
| 25 | 76 | 151 | 226 | 301 | 376 |
| 30 | 116 | 231 | 347 | 462 | 577 |
| 35 | 181 | 362 | 543 | 722 | 902 |
| 40 | 291 | 582 | 873 | 1164 | 1454 |
Charges for default
Banks are required to collect an additional amount for delayed payments, Re. 1 per month for contribution upto Rs. 100 per month.
Atal Pension Yojana is based on National Pension Scheme and aims at providing a steady stream of income after the age of 60 to all citizens of India.