APY: Atal Pension Yojana Eligibility, Contribution Chart & Benefits

Are you looking for a pension plan for your future? The Atal Pension Yojana is one of the best options in this regard. The government has launched this scheme to provide financial security to its citizens. With the help of this plan, you can save money and invest it at an early stage. It will help you get the most out of your hard-earned money without having to worry about inflation or rising interest rates.

Atal Pension Yojana eligibility criteria

To avail of benefits under the Atal Pension Yojana, you have to fulfill certain criteria as laid down by the government. You should have completed 18 years of age as of December 31 of the current year; otherwise, you cannot be eligible for this plan. In case any member belonging to the SC/ST sub-group has attained 58 years but not completed 60 years, they can also be considered an eligible candidate when joining the APY scheme. 

The minimum monthly income requirement is Rs 2,000 per family, which means that the total contribution amount should not be less than Rs 80000/- annually (Rs 10 lakhs over 5 years). The annual interest rate on the balance deposited in an APY account would be decided by a financial advisor based on market rates prevailing at the time of investment during a financial year ending on March 31 each year after the deduction of expenses like brokerage charges, etc. But it all depends upon how much money will accumulate within the period during which we are contributing the minimum monthly income shown above. 

So let us see what the main benefits available under the Atal Pension Yojana are:

India’s Atal Pension Yojana (APY) is a government-backed pension program aimed at the unorganized sector. It was launched on May 9, 2015, by the Indian government. The pension amount starts with a minimum of Rs 1,000 per month, Rs 2,000 per month, Rs 3,000 per month, and so on, up to a maximum of Rs 7500 per month. A person can join this scheme until they are 60 years old or until they attain 65 years old if they have not joined before that age but still have time left to contribute to APY before joining it after attaining their 60th or 65th birthday, respectively, depending on when they joined APY as an employee or a self-employed individual, respectively.

How do I enroll in APY Online?

To enroll in APY, you need to go to the website of the Department of Pension at http://apynepal.gov.in/ and fill out the form with your information including name, date of birth, mobile number, and email ID. Once you complete this step, it will take about 15 minutes for them to verify your details and confirm if you are eligible or not.

If yes, then click on the “Submit” button at the bottom left corner of the page or else click here, but this time wait till we receive an automated response from us informing that no such account exists under our name because we have already enrolled for another scheme called “Atal Pension Yojana,” which is available only through bank accounts registered under HDFC Bank or Kotak Mahindra Bank account numbers only (no other bank accounts).

Now you have two choices: 1. You can open a new account with any of the above banks and then enroll in the APY, or 2. You can wait till you get your pension amount transferred to your bank account and then upgrade it to the “Atal Pension Yojana.”

Do not miss: Senior Citizen Savings Scheme (SCSS) – Eligibility, Interest Rate & Benefits

Age Limit

• The minimum age limit is 18 years and the maximum age limit is 60 years.

• You need to be an Indian citizen or a resident of India with a valid passport to apply for the Atal Pension Yojana.

The scheme is available to all citizens of India, but you need to have been a resident of India for at least one year.

Contribution Chart Under APY

The contribution amount for each member is different based on the number of years he or she has been contributing to APY. For instance, if you are a new member of the pension scheme and have contributed for less than five years, then your contribution will be Rs 1,000 per month. If you have already been contributing for at least 10 years in the past 20 years (or 30 years), then your monthly contribution will go up to Rs 2,000 per month.

The government has also made it compulsory for all new members to enroll in APY. This is because they are targeting the unorganized sector and want people from this segment to have pension benefits.

Entry Age (years)	Total Years of Contribution	Monthly Contribution Amount Required
		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	42	84	126	168	210
19	41	46	92	138	183	228
29	40	50	100	150	198	248
21	39	54	108	162	215	269
22	38	59	117	177	234	292
23	37	64	127	192	254	318
24	36	70	139	208	277	346
25	35	76	151	226	301	376
26	34	82	164	246	327	409
27	33	90	178	268	356	446
28	32	97	194	292	388	485
29	31	106	212	318	423	529
30	30	116	231	347	462	577
31	29	126	252	379	504	630
32	28	138	276	414	551	689
33	27	151	302	453	602	752
34	26	165	330	495	659	824
35	26	181	362	543	722	902
36	24	198	396	594	792	990
37	23	218	436	654	870	1087
38	22	240	480	720	957	1196
39	21	264	528	792	1054	1318
40	20	291	582	873	1164	1454

Source: Paisabazaar.com

Contributory Period Under APY

The Contributory Period Under APY is the period during which you can open your account and contribute to it. It begins with the date of birth and ends at age 60.

The minimum amount of contribution to be eligible for insurance under APY is 25% of your monthly salary, while the maximum limit will vary depending on whether you are contributing from your own money or your employer’s contribution.

The maximum amount is Rs 10 lakhs per annum. You can contribute to this account until your 60th birthday, after which you will become ineligible for the scheme.

Existing Swavalamban Scheme Subscribers

Swavalamban scheme subscribers can join APY with a minimum of Rs 1,000 per month. The contribution limit is Rs. 10,000 per year.

The minimum age to join the scheme is 18 years, and the maximum age is 40 years. The subscribers can withdraw their money after reaching 58 years of age. The subscribers can also withdraw their contributions before attaining 58 years of age, but they will not be eligible for any return on them.

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Pension Amount Under APY

The amount of the pension under the APY is decided by the individual’s age and the contributions he has made. The maximum monthly pension amount is Rs 7,500 per month.

Once you have subscribed to this scheme, you will get a monthly pension of Rs 2,000 as an initial benefit, and it will increase every year with inflation adjustments till your retirement. The pension is payable for life, as long as you are alive. Applicants must be at least 18 years old and not older than 40 to participate in this program. You can also become a member of this scheme if you are already a subscriber to any other government pension scheme or any other defined benefit scheme.

Conclusion

In this post, we have explained Atal Pension Yojana (APY) eligibility, the contribution chart, and benefits under APY. We hope that you have a good idea about it and understand the details of your future pension.

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