What is Atal Pension Yojana?

The Atal Pension Yojana is a crucial social security programme designed for individuals in the unorganised sector who lack access to traditional retirement savings plans. But what exactly is the Atal Pension Yojana? It is a scheme that provides a monthly pension to contributors, including domestic workers, drivers, gardeners, and vendors, who otherwise do not have retirement benefits. By participating in this scheme, individuals are assured of a monthly pension upon reaching the age of 60.

Here’s a brief guide to the Atal Pension Yojana details:

• Eligibility
  To invest in this scheme, you must meet the following criteria:
  
  • The contributor must be between 18 to 40 years of age.
  • Must have a bank account
  • Must be an Indian citizen
  • An Aadhar-linked bank account is preferable for identity verification
  • A valid mobile number is also highly recommended but not an eligibility criterion per se.
    
    
• Contribution Amount
  The amount you contribute depends on the pension you wish to receive and your age when you start the scheme. For instance, an 18-year-old aiming for a ₹1,000 monthly pension would need to contribute ₹42 monthly, whereas a 40-year-old seeking a ₹5,000 pension would need to contribute ₹1,454 each month. Contributions are automatically deducted from the subscriber’s bank account, with the pension being assured by the Government of India.
  
  
• Contribution Amount
  The APY requires you to contribute until you reach the age of 60, with a minimum contribution period of 20 years. So, if you start at 18, you will be contributing for 42 years. However, if you join at 40, you'll only need to contribute for 20 years.
  
  
• Application Process
  You can get details about the APY from any nationalised bank nationwide, as they offer this scheme. To start, open an Atal Pension Yojana account by filling out and submitting the application form. You will need to provide a copy of your Aadhaar card for verification. After your application is processed, you will receive a confirmation message. If you already have a bank account, simply visit your bank to obtain information about the APY scheme, complete the form, and begin your monthly contributions.
  
  
• Withdrawal
  The APY permits withdrawal in certain situations:
  
  • After turning 60: Subscribers can exit the plan and start receiving a fixed monthly pension or a higher amount if the returns from investments are favourable.
  • Before 60: Early withdrawal is allowed only in the event of terminal illness or the subscriber's death. The spouse may continue with the plan or withdraw the accumulated corpus.

This handy guide lets you open your Atal Pension Yojana account now!

Have short-term investment goals? Read more! 

Looking to apply for an Atal Pension Yojana Scheme? Contact your local HDFC Bank branch now!

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.